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7 Identifying Market Segments and Targets

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48 views

7 Identifying Market Segments and Targets

6 ppt

Uploaded by

Guy
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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7

Identifying Market
Segments and Targets
Chapter Questions

 What are the different levels of market


segmentation?
 How can a company divide a market into
segments?
 What are the requirements for effective
segmentation?
 How should business markets be segmented?
 How should a company choose the most
attractive target markets?
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-2
Effective Targeting Requires Marketers
to:
 Identify and profile distinct groups of buyers
who differ in their needs and preferences
 Select one or more market segments to enter
 Establish and communicate the distinctive
benefits of the market offering

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-3
What Is a Market Segment?

A market segment consists of a


group of customers who share a
similar set of needs and wants.

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-4
Segmenting Consumer Markets

Geographic

Demographic

Psychographic

Behavioral

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-5
Geographic Segmentation
Geographic segmentation divides the market
into geographical units such as nations,
states, regions, counties, cities, or
neighborhoods. The company can operate in
one or a few areas, or it can operate in all
but pay attention to local variations.

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-6
SEC Rural Consumers

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-7
Demographic Segmentation

 Age and life cycle


 Life stage
 Gender
 Income
 Generation
 Social class
 Race and Culture

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-8
Age and Lifecycle Stage

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-9
Gender and Income

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-10
SEC Classification: Urban Markets

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-11
Psychographic Segmentation
and The VALS Framework

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-12
Behavioral Segmentation Based
on Needs and Benefits

Needs and Benefits


Decision Roles
User and Usage

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-13
Behavioral Segmentation:
Decision Roles

Initiator

Influencer

Decider

Buyer

User

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-14
Behavioral Segmentation:
Behavioral Variables

 Occasions  Buyer-Readiness
 Benefits  Loyalty Status
 User Status  Attitude
 Usage Rate

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-15
Figure 7.2 Example of a Brand Funnel

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-16
Loyalty Status

 Hard-core
 Split loyals
 Shifting loyals
 Switchers

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-17
Figure 7.3 Behavioral
Segmentation Breakdown

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-18
Segmenting for Business Markets

 Demographic
 Operating variable
 Purchasing approaches
 Situational factors
 Personal characteristics

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-19
Steps in Segmentation Process

 Need-based segmentation
 Segment identification
 Segment attractiveness
 Segment profitability
 Segment positioning
 Segment acid test
 Market mix strategy

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-20
Effective Segmentation Criteria

 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-21
Porter’s Five Forces Model

Threat of Rivalry

Threat of Buyer Threat of Supplier


Bargaining Power Bargaining Power

Threat of Threat of
Substitutes New Entrants

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-22
Figure 7.4 Possible Levels
of Segmentation

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-23
For Review

 What are the different levels of market


segmentation?
 How can a company divide a market into
segments?
 What are the requirements for effective
segmentation?
 How should business markets be segmented?
 How should a company choose the most
attractive target markets?
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from the
United States edition of Marketing Management, 14e. 7-24

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