Major Concepts

Customer-
• Segmentation
Driven Dividing a market into smaller groups with distinct needs,
characteristics, or behavior that might require separate marketing
Marketing strategies or mixes.

Strategy • Market Targeting (Targeting)

The process of evaluating each market segment’s attractiveness and
selecting one or more segments to either.
Chapter 7
• Differentiation
Actually differentiating the market offering to create superior
customer value.

Segmentation Segmenting Consumer Markets

• Geographic
Divides the market into different geographical
• Segmenting consumer markets units such as nations, regions, states, counties,
• Segmenting business markets or cities
• Segmenting international markets
• Demographic
• Requirements for effective segmentation Divides the market into groups based on
variables such as age, gender, family size, family
life cycle, income, occupation, education,
religion, race, generation, and nationality
 Segmenting Consumer Markets Segmenting Consumer Markets
• Demographic segmentation: • Psychographic:
Is the most popular segmentation method because consumer needs, wants, and
usage often vary closely with demographic variables and are easier to measure Divides buyers into different groups based on social class,
than other types of variables
lifestyle, or personality traits
– Age and life-cycle stage segmentation:

Is the process of offering different products or using different marketing • Behavioral:

approaches for different age and life-cycle groups

– Gender segmentation: Divides buyers into groups based on their knowledge, attitudes,
uses, or responses to a product
Divides the market based on sex (male or female)
1.Occasion
– Income segmentation: 2.Benefits sought
3.User status
4.Usage rate
Divides the market into affluent or low-income consumers 5.Loyalty status

Segmenting Consumer Markets Target Market Strategies

– Occasion segmentation:
Undifferentiated marketing targets the whole market with
Divides buyers into groups according to occasions when they get the idea to buy, actually
make purchases, or respond to a product one offer
– Benefit segmentation: • Mass marketing
Requires finding the major benefits people look for in the product class, the kinds of people
• Focuses on common needs rather than what’s different
who look for each benefit, and the major brands that deliver each benefit
Differentiated marketing targets several different market
– User status: segments and designs separate offers for each
Divides buyers into ex-users, potential users, first-time users, and regular users of a product • Goal is to achieve higher sales and stronger position
– Usage rate: • More expensive than undifferentiated marketing
Divides buyers into light, medium, and heavy product users
Concentrated marketing targets a small share of a large
market
–
•
Loyalty status:
Limited company resources
Divides buyers into groups according to their degree of loyalty • Knowledge of the market
• More effective and efficient
 Target Market Strategies Target Market Strategies
• Micromarketing: • Individual marketing:

Is the practice of tailoring products and marketing programs to suit the tastes of Involves tailoring products and marketing programs to the needs and
specific individuals and locations preferences of individual customers. It is also known as:
• One-to-one marketing
• Local marketing • Mass customization
•
• Individual marketing Markets-of-one marketing

• Local marketing: • Mass customization:

Involves tailoring brands and promotion to the needs and wants of local
customer groups Is the process through which firms interact one-to-one with
masses of customers to design products and services tailor-made
• Cities to meet individual needs. Has made relationships with customers
• Neighborhoods important in the new economy. It provides a way to distinguish
• Stores the company against competitors

Target Market Strategies Differentiation and positioning

• Competitive Advantage:
• Product position:
Is the advantage over competitors gained by offering greater value either through lower prices or by providing
more benefits that justify higher prices
Is the way the product is defined by consumers on
• Value proposition:
important attributes—the place the product
The full positioning of a brand — the full mix of benefits upon which it is positioned.
occupies in consumers’ minds relative to competing • Value proposition:
products Is the full mix of benefits upon which a brand is positioned
• More for more
• More for the same
• Same for less
• Less for much less

•
• More for less
Perceptions
•
• Impressions Positioning statement :

• Feelings States the product’s membership in a category and then shows its point-of-difference from other members of the
category.
Questions?

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