The document discusses market segmentation and targeting strategies. It describes dividing markets into segments based on geographic, demographic, behavioral, and other factors. It also covers evaluating segments and selecting target markets, as well as different targeting approaches like undifferentiated, differentiated, concentrated, and micromarketing.
The document discusses market segmentation and targeting strategies. It describes dividing markets into segments based on geographic, demographic, behavioral, and other factors. It also covers evaluating segments and selecting target markets, as well as different targeting approaches like undifferentiated, differentiated, concentrated, and micromarketing.
The document discusses market segmentation and targeting strategies. It describes dividing markets into segments based on geographic, demographic, behavioral, and other factors. It also covers evaluating segments and selecting target markets, as well as different targeting approaches like undifferentiated, differentiated, concentrated, and micromarketing.
The document discusses market segmentation and targeting strategies. It describes dividing markets into segments based on geographic, demographic, behavioral, and other factors. It also covers evaluating segments and selecting target markets, as well as different targeting approaches like undifferentiated, differentiated, concentrated, and micromarketing.
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Chapter 7
Customer-Driven Marketing Strategy: Creating Value for Target Customers Customer-Driven Marketing Strategy Market Segmentation Market segmentation requires dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes. MARKET SEGMENTATION
market into different geographical units such as nations, regions, states, counties or cities Market Segmentation Segmenting Consumer Markets
Demographic 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 Market Segmentation
Age and life-cycle stage segmentation is the
process of offering different products or using different marketing approaches for different age and life-cycle groups Gender segmentation divides the market based on sex (male or female) Market Segmentation Segmenting Consumer Markets
Income segmentation divides
the market into affluent, middle-income or low- income consumers Psychographic segmentation divides buyers into different groups based on lifestyle or personality traits Market Segmentation Segmenting Consumer Markets
Behavioral segmentation divides
buyers into groups based on their knowledge, attitudes, uses or responses to a product • Occasions • Benefits sought • User status • Usage rate • Loyalty status Market Segmentation Using Multiple Segmentation Bases
Multiple segmentation is used to identify smaller,
better-defined target groups Market Segmentation Segmenting International Markets
Intermarket segmentation divides consumers
into groups with similar needs and buying behaviors even though they are located in different countries Market Segmentation Requirements for Effective Segmentation To be useful, market segments must be: Market Targeting Selecting Target Market Segments Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve TARGETING
Evaluate Select
Attractiveness Size and Growth Potential Brand Objectives Organizational Resources
market with one offer • Mass marketing • Focuses on common needs rather than what’s different Market Targeting Target Marketing Strategies
Differentiated marketing targets several
different market segments and designs separate offers for each • Goal is to achieve higher sales and stronger position • More expensive than undifferentiated marketing Market Targeting Target Market Strategies
Concentrated marketing • Firm targets a large share of one or few smaller segments • Limited company resources •Knowledge of the market •More effective and efficient Marketing Targeting Target Market Strategies
Micromarketing is the practice of tailoring
products and marketing programs to suit the tastes of specific individuals and locations • Local marketing • Individual marketing Market Targeting Target Market Strategies
Local marketing involves tailoring brands and
promotion to the needs and wants of local customer groups • Cities • Neighborhoods • Stores Market Targeting Target Market Strategies
Individual marketing involves
tailoring products and marketing programs to the needs and preferences of individual customers • Also known as: – One-to-one marketing – Mass customization Market Targeting Choosing a Target Market Depends on: • Company resources • Product variability • Product life-cycle stage • Market variability • Competitor’s marketing strategies Differentiation and Positioning
Product position is the way
the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products • Perceptions • Impressions • Feelings Differentiation and Positioning
Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions Differentiation and Positioning Choosing a Differentiation and Positioning Strategy
• Identifying a set of possible competitive
advantages to build a position • Choosing the right competitive advantages • Selecting an overall positioning strategy • Communicating and delivering the chosen position to the market Differentiation and Positioning Identifying Possible Value Differences and Competitive Advantages
Competitive advantage is an advantage over
competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices Differentiation and Positioning Choosing a Differentiation and Positioning Strategy
Identifying a set of possible competitive
advantages to build a position by providing superior value from: Differentiation and Positioning Selecting an Overall Positioning Strategy
Value proposition is the full mix of benefits upon which a brand is positioned Thank You
