1. Market Segmentation Jeremy Kees, Ph.D.

2. Selecting and Serving Consumers Market Segmentation: the process of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs NOT to be confused with targeting and positioning

3. Our overall intent is to… 1.Identify groups of similar customers and potential customers 2.Prioritize the groups 3.Understand their behavior 4.Respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment

4. To effectively segment a market, remember SADAM S Substantial A Accessible D Differential A Actionable M Measurable

5. We can segment a market by… Geography Region of the world or country City or country size Climate

6. We can segment a market by… Demographics age gender sexual orientation family size family life cycle household type income/expenditure patterns occupation education socioeconomic status religion nationality/race/ethnic group

7. Oxygen.com – clearly an ad directed at the female segmentOxygen.com Budweiser – most campaigns target young malesBudweiser

8. We can segment a market by… Psychographics personality lifestyle value attitude

9. Tom’s of MaineTom’s of Maine –Targeting a Specific Marketing Segment –Which segment?

10. How about Kellogg's?How about Kellogg's?How about Kellogg'sHow about Kellogg's

11. We can segment a market by… Product Characteristics / Behavior benefit sought product usage rate brand loyalty product end use readiness-to-buy stage

12. Which segment is Mabellene trying to appeal to?Which segment is Mabellene trying to appeal to?Which segment is Mabellene trying to appeal to?Which segment is Mabellene trying to appeal to?

13. Segmenting based on one variable usually is not good enough….