Market Segmentation

Chapter 9

Market Segmentation

Source: http://www. b2binternational.com     What is it?

Segments should  Have common needs  Respond similarly to a marketing action Product differentiation Market-product grid

Market Segmentation

 Segmentation Criteria     Substantiality Identifiability Accessibility Responsiveness

Potential Buyers into Segments

 Ways to Divide the Market      Region Age/ household size Lifestyle Benefits sought Usage rate  80/20 rule

Bases for Consumer Segmentation   Geographic segmentation Demographic segmentation  Age segmentation  Tweens    Generation Y Generation X Baby Boomers

Bases for Consumer Segmentation  Demographic segmentation (cont’d)     Gender segmentation   Men Women Income segmentation  Why used?

Ethnic segmentation  Ramifications Family life cycle segmentation  Increasing role of single adults Source: http://hashtagsocialmedia.com

Bases for Consumer Segmentation    Psychographic segmentation   Personality Motives   Lifestyles Geodemographics Benefit segmentation  Snack food market Usage rate segmentation  80/20 rule

Bases for Organizational Segmentation   Company characteristics     Geography Industry (NAICS) Size Product use Buying process  What are they looking for?

 Optimizers v. satisficers

Strategies to Select Target Market     Undifferentiated targeting  One marketing mix for entire market Concentrated targeting  One particular segment Multisegment targeting  Wal-mart  Brand aspirationalists, price sensitive affluents, value price shoppers One-to-one marketing  Individualized

Positioning

   Product differentiation Perceptual map Repositioning  Wal-mart  Mountain Dew Source: http://mergevisual.blogspot.com