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Segmentation and Targeting of Marketing

The document discusses market segmentation and targeting. It explains that marketers must identify distinct customer groups, select target segments, and position their offering to each target. It outlines levels of segmentation from mass to niche markets. Criteria for effective segmentation include segments being measurable, substantial, accessible, differentiable and actionable. Various bases for segmenting consumer and business markets are also presented such as demographics, psychographics, behaviors and multi-attribute clustering.

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Sajal Kumar
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92 views17 pages

Segmentation and Targeting of Marketing

The document discusses market segmentation and targeting. It explains that marketers must identify distinct customer groups, select target segments, and position their offering to each target. It outlines levels of segmentation from mass to niche markets. Criteria for effective segmentation include segments being measurable, substantial, accessible, differentiable and actionable. Various bases for segmenting consumer and business markets are also presented such as demographics, psychographics, behaviors and multi-attribute clustering.

Uploaded by

Sajal Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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10

Identifying Market Segments


& Selecting Target Markets

08/17/20 10-1
Chapter Objectives

 We focus on the following questions:


 How can a company identify the segments
that make up a market?
 What criteria can a company use to
choose the most attractive target markets?

08/17/20 10-2
Target Marketing

 Target marketing requires marketers to


take three major steps:
 Identify and profile distinct groups of
buyers who differ in their needs and
preferences (market segmentation).
 Select one or more market segments to
enter (market targeting).
 For each target segment, establish and
communicate the key distinctive benefit(s)
of the company’s market offering (market
positioning).
08/17/20 10-3
Levels and Patterns of Market
Segmentation
 Levels of Market Segmentation
 Mass marketing
 Micromarketing
 Segment marketing
 Market segment
 Sector
 Flexible market offering
 Naked solution
 Discretionary options

08/17/20 10-4
Levels and Patterns of Market
Segmentation
 Niche Marketing
 Niche
 Local Marketing
 Individual Customer Marketing
 Mass-customization
 Choiceboard
 Customerization
 Segments
 Individuals

08/17/20 10-5
Levels and Patterns of Market
Segmentation
 Patterns for Market Segmentation
 Preference segments
 Homogeneous preferences
 Diffused preferences
 Clustered preferences
 Natural market segments
 Concentrated marketing

08/17/20 10-6
Basic
Market-Preference
Patterns

08/17/20 10-7
Levels and Patterns of Market
Segmentation
 Market Segmentation Procedure
 Needs-based market segmentation
 Market partitioning
 Brand-dominant hierarchy
 Nation-dominant hierarchy

08/17/20 10-8
Levels and Patterns of Market
Segmentation
 Effective Segmentation
 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable

08/17/20 10-9
Segmenting Consumer and Business
Markets
 Bases for Segmenting Consumer Markets
 Geographic Segmentation
 Demographic Segmentation
 Age and Life-Cycle Stage
 Life Stage
 Gender
 Income
 Generation
 Depression Cohort
 World War II Cohort
 Post-War Cohort
 Leading-Edge Baby Boomer Cohort
 Trailing-Edge Baby Boomer Cohort
 Generation X Cohort
 Generation Y Cohort
08/17/20 10-10
Segmenting Consumer and Business
Markets
 Lifestage Analytic Matrix
 Lifestages
 Physiographics
 Emotional effects
 Socioeconomics
 Social Class
 Psychographic Segmentation
 Lifestyle
 Time-constrained
 multitasking
 Money-constrained
08/17/20 10-11
Segmenting Consumer and Business
Markets
 Personality
 “Brand personality” examples:
 Sincere
 Exciting
 Competent
 Sophisticated
 Rugged
 Values
 Core values

08/17/20 10-12
Segmenting Consumer and Business
Markets
 Behavioral Segmentation
 Occasions
 Critical life events or transitions
 Benefits
 Mobil has identified five segments and their
sizes
 Road Warriors 16%
 Generation F 27%
 True Blues 16%
 Home Bodies 21%
 Price Shoppers 20%

08/17/20 10-13
Segmenting Consumer and Business
Markets
 User Status
 Usage Rate
 Loyalty Status
 Hard-core loyals
 Split loyals
 Shifting loyals
 Switchers
 Buyer-Readiness Stage
 Attitude

08/17/20 10-14
Segmenting Consumer and Business
Markets
 Multi-Attribute Segmentation (Geoclustering)
 Four PRIZM clusters
 American Dreams
 Rural Industria
 Gray Power
 Country Squires
 Targeting Multiple Segments

08/17/20 10-15
Major Segmentation Variables for Business Markets
Demographic
1. Industry: Which industries should we serve?
2. Company size: What size companies should we serve?
3. Location: What geographical areas should we serve?
Operating Variables
4. Technology: What customer technologies should we focus on?
5. User or nonuser status: Should we serve heavy users, medium
users, light users, or nonusers?
6. Customer capabilities: Should we serve customers needing many or
few services?
Purchasing Approaches
7. Purchasing-function organization: Should we serve companies with
highly centralized or decentralized purchasing organizations?
8. Power structure: Should we serve companies that are engineering
dominated, financially dominated, and so on?

08/17/20 10-16
Figure 10-3: Segment-by-Segment
Invasion Plan

08/17/20 10-17

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