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    Identifying Market Segments and Targets: Marketing Management, 13 Ed

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    Identifying Market Segments and Targets: Marketing Management, 13 Ed

    Uploaded by

    Chang Chang
    127 views18 pages

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    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    127 views18 pages

    Identifying Market Segments and Targets: Marketing Management, 13 Ed

    Uploaded by

    Chang Chang

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    8

    Identifying
    Market Segments
    and Targets

    Marketing Management, 13th ed

    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?
    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    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
    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Four levels of Micromarketing

    Segments
    Niches
    Local areas
    Individuals

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    What is a Market Segment?


    A market segment consists of a
    group of customers who share a
    similar set of needs and wants.

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Flexible Marketing Offerings


    Naked solution:
    Product and service
    elements that all
    segment members
    value

    Discretionary
    options: Some
    segment members
    value options but
    not all

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    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

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    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.
    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    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.

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Segmenting Consumer Markets

    Geographic
    Demographic
    Psychographic
    Behavioral

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Claritas Prizm

    Education and affluence


    Family life cycle
    Urbanization
    Race and ethnicity
    Mobility

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Demographic Segmentation

    Age and life cycle


    Life stage
    Gender
    Income
    Generation
    Social class

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Behavioral Segmentation
    Decision Roles
    Initiator
    Influencer
    Decider
    Buyer
    User

    Behavioral Variables
    Occasions
    Benefits
    User Status
    Usage Rate
    Buyer-Readiness
    Loyalty Status
    Attitude

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    The Brand Funnel Illustrates


    Variations in the
    Buyer-Readiness Stage

    Aware
    Ever tried
    Recent trial
    Occasional user
    Regular user
    Most often used

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Loyalty Status

    Hard-core
    Split loyals
    Shifting loyals
    Switchers

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Segmenting for Business Markets

    Demographic
    Operating variable
    Purchasing approaches
    Situational factors
    Personal characteristics

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Steps in Segmentation Process

    Need-based segmentation
    Segment identification
    Segment attractiveness
    Segment profitability
    Segment positioning
    Segment acid test
    Market mix strategy

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

    Effective Segmentation Criteria

    Measurable
    Substantial
    Accessible
    Differentiable
    Actionable

    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

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