1. Identifying Market Segments and Targets8
Identifying Market Segments and Targets
Marketing Management, 13th ed

2. Chapter Questions
What are the different levels of market segmentation?
How can a company divide a market into segments?
How should a company choose the most attractive target markets?
What are the requirements for effective segmentation?
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3. Baby Boomers: A Lucrative Market
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5. Factors influencing firm’s marketing strategy
6. Develop marketing mix for each target segment
Market
Positioning
5. Develop positioning for each target segment
4. Select the target segment (s)
Market
Targeting
3. Develop measures of segment attractiveness
2. Develop profiles of resulting segments
Market
Segmentation
1. Identifying bases for segmenting the market
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6. 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
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7. Ford’s Model T Followed a Mass Market Approach
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8. Four levels of Micromarketing
Segments
Niches
Local areas
Individuals
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9. What is a Market Segment?
A market segment consists of a group of customers who share a similar set of needs and wants.
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10. Gather.com: A Niche Social Networking Site
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11. Flexible Marketing Offerings
Naked solution: Product and service elements that all segment members value
Discretionary options: Some segment members value options but not all
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12. Preference Segments
Homogeneous preferences exist when consumers want the same things
Diffused preferences exist when consumers want very different things
Clustered preferences reveal natural segments from groups with shared preferences
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13. Figure 8.1 Basic Market Preference Patterns
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14. Niche Marketers Enterprise Rent-A-Car targets the insurance-
replacement market
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15. Baskin Robbins Focuses on Local Marketing
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16. The Long Tail Chris Anderson explains the long tail equation:
The lower the cost of distribution, the more you can economically offer without having to predict demand;
The more you can offer, the greater the chance that you will be able to tap latent demand for minority tastes; and
Aggregate enough minority taste, and you may find a new market.
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17. 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.
Video icon links to Marriott snippet on offering different brands for specific segments.
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18. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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19. Claritas’ Prizm Education and affluence Family life cycle Urbanization
Race and ethnicity
Mobility
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20. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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21. Toyota Scion Targets Gen Y Consumers
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22. Dove Targets Women
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23. Figure 8.1 The VALS Segmentation System
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24. Behavioral Segmentation
Decision Roles
Initiator
Influencer
Decider
Buyer
User
Behavioral Variables
Occasions
Benefits
User Status
Usage Rate
Buyer-Readiness
Loyalty Status
Attitude
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25. The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage
Aware
Ever tried
Recent trial
Occasional user
Regular user
Most often used
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26. Loyalty Status Split loyals Shifting loyals Switchers Hard-core
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27. Figure 8.3 Behavioral Segmentation Breakdown
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28. The Conversion Model Nonusers Users Convertible Shallow Average
Entrenched
Nonusers
Users
Strongly
unavailable
Weakly
unavailable
Ambivalent
Available
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29. Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal
Characteristics
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30. Steps in Segmentation Process
Needs-based segmentation
Segment identification
Marketing-Mix
Strategy
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
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31. Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
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32. Figure 8.4 Patterns of Target Market Selection
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33. Figure 8.4 Patterns of Target Market Selection
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34. Figure 8.4 Patterns of Target Market Selection
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35. Crest Whitestrips Follows a Multisegment Strategy
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36. Figure 8.5 Segment-by-Segment Invasion Plan
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37. Pepsi used Megamarketing in India
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38. Marketing Debate Is mass marketing dead? Take a position:
Mass marketing is dead. or
2. Mass marketing is still a viable way to build
a profitable brand.
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39. Marketing Discussion Think of various product categories.
How would you classify yourself
in terms of the various segmentation
schemes?
How would marketing be more or less
effective for you depending upon the
segment involved?
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