1. Identifying Market Segments and Targets Marketing Management, 13 th ed 8

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-2 Effective Targeting Requires… Identify and profile distinct groups of buyers who differ in their needs and preferences Select one or more market segments to enter Establish and communicate the distinctive benefits of the market offering

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-3 Ford’s Model T Followed a Mass Market Approach

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-4 Four levels of Micromarketing Segments Local areasIndividuals Niches

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-5 Niche Marketers Enterprise Rent-A-Car targets the insurance- replacement market

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-6 What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs ad wants.

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-7 What is Customerization? Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-8 Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-9 Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-10 Behavioral Segmentation Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-11 Heavy and Light Users of Common Consumer Products HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94%) 25% 29% 79%21% Toilet tissue (95%) Shampoo (94%) 75%25% 17% Paper towels (90%) Cake mix (74%) Cola (67%) 83% 13% 5 % 87% 19% Beer (41%) Dog food (30%) Bourbon (20%) 81% 95%

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-12 The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage Aware Ever tried Recent trial Occasional user Regular user Most often used

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-13 Loyalty Status Switchers Shifting loyals Split loyals Hard-core

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-14 Figure 8.3 Behavioral Segmentation Breakdown

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-15 Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-16 Figure 8.4 Patterns of Target Market Selection

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-17 Figure 8.4 Patterns of Target Market Selection

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-18 Figure 8.4 Patterns of Target Market Selection