Transcript Marketing Presentation 8

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Identifying Market
Segments and Targets
Chapter Questions
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What are the different levels of market
segmentation?
How can a company divide a market into
segments?
What are the requirements for effective
segmentation?
How should business markets be segmented?
How should a company choose the most
attractive target markets?
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Effective Targeting Requires…
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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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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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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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Geographic Segmentation
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Claritas’ Prizm
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Education and affluence
Family life cycle
Urbanization
Race and ethnicity
Mobility
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Demographic Segmentation
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Age and life cycle
Life stage
Gender
Income
Generation
Social class
Race and Culture
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Age and Lifecycle Stage
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Gender and Income
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Generational Influences
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Race and Culture
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Psychographic Segmentation
and The VALS Framework
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Behavioral Segmentation Based
on Needs and Benefits
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Behavioral Segmentation:
Decision Roles
Initiator
Influencer
Decider
Buyer
User
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Behavioral Segmentation:
Behavioral Variables
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Occasions
Benefits
User Status
Usage Rate
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Buyer-Readiness
Loyalty Status
Attitude
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Figure 8.2 Example of a Brand Funnel
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Loyalty Status
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Hard-core
Split loyals
Shifting loyals
Switchers
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Figure 8.3 Behavioral
Segmentation Breakdown
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Segmenting for Business Markets
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Demographic
Operating variable
Purchasing approaches
Situational factors
Personal characteristics
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Steps in Segmentation Process
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Need-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Market mix strategy
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Effective Segmentation Criteria
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Measurable
Substantial
Accessible
Differentiable
Actionable
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Porter’s 5 Forces Model
Threat of Rivalry
Threat of Buyer
Bargaining Power
Threat of Supplier
Bargaining Power
Threat of
Substitutes
Threat of
New Entrants
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Figure 8.4 Possible Levels
of Segmentation
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For Review
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What are the different levels of market
segmentation?
How can a company divide a market into
segments?
What are the requirements for effective
segmentation?
How should business markets be segmented?
How should a company choose the most
attractive target markets?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
8-25