Transcript Marketing Chapter 8 Market Segmentation Gilbert A. Churchill, Jr. J. Paul Peter Slide 8-1 Basic Definitions Approach Market Market Segmentation Target Market Definition Individuals or organizations with the desire and ability to buy goods and.

Marketing
Chapter 8
Market Segmentation
Gilbert A. Churchill, Jr.
J. Paul Peter
Slide
8-1
Basic Definitions
Approach
Market
Market
Segmentation
Target
Market
Definition
Individuals or organizations with the desire and
ability to buy goods and services
The process of dividing a market into groups of
potential buyers who have similar needs and
wants, value perceptions, or purchasing behavior
The particular market segment that the organization
selects to serve.
Slide
8-2
Table
8.1
Approaches to Serving Markets
Approach
Mass Marketing
Description
A single marketing mix for
the entire market
Niche Marketing
A single marketing mix for
one segment of the market
Segment
Marketing
Differentiated Marketing
Separate marketing mixes
for two or more segments
of the market
Individual
Marketing
A marketing mix
customized for an
individual or organization
Examples
Phone service, WEB pages
Women's Workout World (exercise
facilities for women); American
Association for Retired Persons
(lobbying and membership services
for people over 50)
McDonald’s (Happy Meals for
young children, Big Macs for
Teens, Arch Deluxe for adults);
Toshiba copiers (several sizes and
features to meet different levels of
business needs)
Personalized amenities for repeat
guests at Ritz-Carlton hotels;
management consulting services
tailored to an organization’s needs
Market Segmentation
Slide
8-3
used to develop a competitive advantage
Market Potential - the total
purchases that buyers in a
segment will likely make during a
specified period of time, given a
specified level of marketing activity
Criteria for
Successful
Market
Segmentation
Measurability - be able
to measure its size and
characteristics
Accessibility - be able
to reach members of target
segment with customized
marketing mixes
Responsiveness respond differently to
some aspect of the 4P
than other segments
Slide
8-4
P & G Segmentation - Detergent Market
53% market share of the $3.2 billion market
TIDE - “Tide’s
in, dirt out”
ARIEL - “tough
cleaner”
CHEER - “all
temperature Cheer”
DREFT - “a
clean you can
trust”
BOLD - “cleans,
soften,and
controls static”
GAIN “freshens like
sunshine”
IVORY SNOW “mild, gentle soap
for baby clothes
SOLO - “liquid
detergent with
fabric softener
ERA - “builtin stain
remover”
DASH “attack
tough dirt”
OXYDOL “makes clothes
bright”
Slide
8-5
Mass/Undifferentiated Marketing
The Market
Product
Price
Everyone
Placement Promotion
Slide
8-6
Niche Marketing
The Market
Product
Price
Placement Promotion
Market
Segment
Slide
8-7
Differentiated Marketing
The Market
Product
Price
Placement Promotion
Product
Price
Placement Promotion
Market
Segment
Market
Segment
Slide
8-8
Individual Marketing
The Market
Product Price
Placement
Promotion
Customer
Product Price
Placement
Promotion
Customer
Product Price
Placement
Promotion
Customer
Product Price
Placement
Promotion
Customer
Slide
8-9
Table
8.2
Some Bases for Segmenting
Consumer Markets
Levis
Dockers
Demographic
Campbell
Soup
Geographic
Behavior
Segmentation
Benefit
Colgate
Toothpaste
Southwest
Airlines
Psychological
Frito-Lay
Snacks
Slide
8-10
Figure
8.2
VALS2 Lifestyle Categories Consumer Markets
Resources
Abundant
Actualizers
Fulfilleds
Achievers
Experiencers
Believers
Strivers
Makers
Strugglers
Minimal
Principal
Oriented
Status
Oriented
Action
Oriented
Self-Orientation
Slide
8-11
Table
8.3
Some Bases for Segmenting
Organizational Markets
Intel
Computer Chips
Geographic
Segmentation
Apple Computer
Newton Pocket
Computer
Organizational
Buyer
Behavior
Customer
Type
Flowers Industries
Baked Goods
Slide
8-12
Figure
8.5
The Process of Market Segmentation
Analyze Customer
Product Relationship
Investigate
Segmentation Bases
Develop Product
Positioning
Select Segmentation
Strategy
Slide
8-13
Product Position
Attribute
BMW - performance
The perception of the product
relative to competing
products in the minds of
potential buyers.
Price and Quality
Dillards VS KMart
Use or Application
Gatorate
Positioning Bases
Product User
J&J Baby Shampoo
Product Class
Parkay, Caress
Competitor
VISA VS AMEX
Slide
8-14
Figure
8.6
Sample Positioning Map: Automobiles
Luxurious
•Lexus
•Mercedes
Cadillac•
•BMW
Lincoln•
•Chrysler
Oldsmobile• •Buick
Traditional
Mercury•
Ford•
•Porsche
•Pontiac
Sporty
•Chevrolet
•Nissan
Dodge•
Plymouth•
•Toyota
•VW
Functional
•Saturn