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Chapter 2-slide 4

Market segmentation is the process that companies use

to divide large heterogeneous markets into small markets

that can be reached more efficiently and effectively with

products and services that match their unique needs


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Chapter 2-slide 6

Segmenting consumer markets

Segmenting business markets

Segmenting international markets

Requirements for effective segmentation


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Chapter 2-slide 9

Demographic

segmentation divides the

market into groups basedon variables such as age,

gender, family size, family

life cycle, income,

occupation, education,

religion, race, generation,

and nationality

Segmenting Consumer Markets


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Chapter 2-slide 10

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)
http://www.gurl.com/


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Chapter 2-slide 11

Income segmentation

divides the market into

affluent or low-incomeconsumers

Psychographic

segmentation divides

buyers into different groupsbased on social class,

lifestyle, or personality

traits



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Chapter 2-slide 12

Behavioral segmentationdivides buyers into groups

based on their knowledge,attitudes, uses, orresponses to a product

Occasions

Benefits sought User status

Usage rate

Loyalty status



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Chapter 2-slide 13

Multiple segmentation is used to identify

smaller, better-defined target groups

Geodemographic segmentationis an

example of multivariable segmentation that

divides groups into consumer lifestyle patterns

Using Multiple Segmentation Bases


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Chapter 2-slide 14

PRIZM NE classifies every

American household into 66

unique segments organized into

14 different social groups.

These groups segment people

and locations into marketable

groups of like-minded consumers

that exhibit uniquecharacteristics and buying

behavior based on a host of

demographic factors

Using Multiple Segmentation Bases


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Chapter 2-slide 15

Geographiclocation

Economicfactors

Political-legal factors

Culturalfactors

Segmenting International markets


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Chapter 2-slide 16

Intermarket segmentation divides consumers into

groups with similar needs and buying behaviors even

though they are located in different countries

Segmenting Business Markets


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Chapter 2-slide 17

To be useful, market segments must be:Requirements for Effective Segmentation

Measurable Accessible

Substantial Differentiable

Actionable


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Chapter 2-slide 18

Target market consists of a set of buyers who share

common needs or characteristics that the company

decides to serve

Selecting Target Market Segments


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Chapter 2-slide 20

Target Marketing Strategies


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Chapter 2-slide 21

Undifferentiatedmarketing targets the whole market

with one offer

Mass marketing

Focuses on common needs rather than whats different

Target Marketing Strategies


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Chapter 2-slide 23

Concentrated marketing

targets a small share of a

large market Limited company

resources

Knowledge of the market

More effective and efficient

Target Market Strategies


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Chapter 2-slide 24

Micromarketingis the practice of tailoring products and

marketing programs to suit the tastes of specific

individuals and locations Local marketing

Individual marketing

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Chapter 2-slide 25

Local marketing involves tailoring brands and

promotion to the needs and wants of local customer

groups Cities

Neighborhoods

Stores



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Chapter 2-slide 26

Individual marketing

involves tailoring products

and marketing programs tothe needs and preferences

of individual customers

Also known as:

One-to-one marketing

Mass customization

Markets-of-one marketing



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Chapter 2-slide 27

Depends on:

Company resources

Product variability

Product life-cycle stage Market variability

Competitors marketing strategies

Choosing a Target Market


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Chapter 2-slide 28

Benefits customers with specific

needs

Concern for vulnerable segments

Children

Alcohol

Cigarettes

Internet abuses

Socially Responsible Target Marketing


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Chapter 2-slide 29

Product position is theway the product isdefined by consumerson important

attributesthe placethe product occupiesin consumers mindsrelative to competing

products Perceptions

Impressions

Feelings


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Chapter 2-slide 30

Positioning maps

show consumer

perceptions of

their brandsversus

competing

products on

importantbuying

dimensions


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Chapter 2-slide 31

Identifying a set of possible competitive advantages to

build a position

Choosing the right competitive advantages

Selecting an overall positioning strategy

Developing a positioning statement

Choosing a Differentiation andPositioning Strategy


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Chapter 2-slide 32

Competitive advantage is an advantage over

competitors gained by offering consumers greatervalue, either through lower prices or by providing

more benefits that justify higher prices

Identifying Possible Value Differencesand Competitive Advantages


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Chapter 2-slide 34

Difference to promote should be:

Choosing the Right Competitive

Advantage

Important Distinctive Superior

Communicable Preemptive Affordable

Profitable
http://www.youtube.com/watch?v=HOYnOeo42ko


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Chapter 2-slide 35

Value proposition is

the full mix ofbenefits upon which

a brand is positioned

Selecting an Overall Positioning Strategy


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Chapter 2-slide 36

To (target segment and need) our (brand) is (concept)

that (point of difference)

Developing a Positioning Statement

Web link
http://www.youtube.com/watch?v=YOiKG7hb8Pg


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Chapter 2-slide 37

Choosing the positioning

is often easier than

implementing the

position.


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Stephan Langdon, MBA, M Ed

2011-07marketing-110522213934-phpapp01

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