Transcript Market Segmentation, Targeting and Positioning

Market Segmentation,
Targeting and
Positioning
Chapter 10
What is a market segment?
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A group of customers within the same
general market who are defined by:
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Differences from other groups
Similarities within the group regarding wants,
buying preferences, or buying behavior
Target Market
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The specific market segment for which the
marketer designs a particular marketing mix
Market segmentation
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The process of dividing the total market for a
good or service into smaller, internally
homogeneous groups
Benefits of market
segmentation
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Small firms- allocate resources to specifically
defined and selected markets
Medium firms- rapid growth
Large firms- reach fragmented groups
Process of segmentation
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Identify current and potential wants within the
market
Identify characteristics that distinguish among
the segments
Determine the size of segments and how well
they are being served
Characteristics of good market
segments
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Differences in consumers
Similarities within the segment
Measurable attributes
Large enough
Accessible
Limitations of segmentation
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“Too small” segments
Misread differences and similarities
Cost inefficient
Too many spin-offs
Short term vs. long-term orientation
Unable to use certain media
Firms compete in too many segments
Confuse people
Products get locked in a declining segment
Slow to seek innovative possibilities
The first cut:
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Ultimate vs. Business consumers
Consumer markets
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Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
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Benefits desired
Usage rate
Geographic segmentation
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Regional distribution
City or metro size
Urban, suburban, rural
Climate
Trends
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Global marketing
Micromarketing
Demographic segmentation
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Income/education level
Age
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Age effects
Cohort effects
Gender
Family life cycle
Occupation
Ethnicity/race
Psychographic segmentation
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Personality
Lifestyle
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VALS
Attitudes
Opinions
Behavioral segmentation
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Benefits desired
Usage rate
Segmenting business markets
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Customer location
Customer type
Size
Organization structure
Purchase criteria
Transaction conditions
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Buying situation
Usage rate
Purchase procedure
Target market Strategy
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Analyze demand
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Homogeneous
Clustered
Diffused
Aggregation strategy
Single segment strategy
Multiple segment strategy
Forecasting market demand
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Quantitative methods
Qualitative methods
Basic forecasting terms
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Market share
Market factor
Market potential
Sales potential
Sales forecast
Forecasting sales
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Table 10-3