Market segmentation ppt

Objectives

Identifying Market Segments Choosing Target Markets

Steps in Market Segmentation, Targeting,and Positioning

1. Identifysegmentationvariables andsegment themarket

2. Develop profiles ofresultingsegments

MarketSegmentation

3. Evaluateattractivenessof eachsegment

4. Select thetargetsegment(s)

MarketTargeting

5. Identifypossible

positioningconcepts foreach target

segment

6. Select,develop, andcommunicate

the chosenpositioning

concept

MarketPositioning

Basic Market-Preference Patterns

(a) Homogeneouspreferences

Sweetness

Cre

amin

ess

(c) Clusteredpreferences

Cre

amin

ess

Sweetness

(b) Diffusedpreferences

Cre

amin

ess

Sweetness

Market-Segmentation Procedure

Survey Motivations Attitudes Behavior

Analysis Factors Clusters

Profiling

Bases for Segmenting Consumer Markets

Occasions, Benefits, Uses, or Attitudes

Behavioral

GeographicRegion, City or MetroSize, Density, Climate Demographic

Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...

Lifestyle or PersonalityPsychographic

Bases for Segmenting Business Markets

Demographic Operating Variables Purchasing Approaches Situational Factors Personal Characteristics

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

• Segments must be large or profitable enough to serve.

• Segments can be effectively reached and served.

ActionableActionable

• Size, purchasing power, profiles of segments can be measured.

• Segments must respond differently to

different marketing mix elements & actions.

• Must be able to attract and serve

the segments.

Effective Segmentation

Heavy and Light Users of Common Consumer Products

HEAVY HALF LIGHT HALFPRODUCT (% USERS)

75%

71%

Soups anddetergents (94%) 25%

29%

79% 21%

Toilet tissue (95%)

Shampoo (94%)

75% 25%

17%

17%

Paper towels (90%)

Cake mix (74%)

Cola (67%)

83%

83%

13%

5%

87%

19%

Beer (41%)

Dog food (30%)

Bourbon (20%)

81%

95%

Additional Segmentation Criteria

Ethical Choice of Market Targets Segment Interrelationships & Supersegments Segment-by-Segment Invasion Plans Intersegment Cooperation

Five Patterns of Target Market Selection

Single-segmentconcentration

Productspecialization

M1 M2 M3 P1

P2

P3

Selectivespecialization

M1 M2 M3 P1

P2

P3

M1 M2 M3

Full marketcoverage

P1

P2

P3

Marketspecialization

M1 M2 M3 P1

P2

P3

P1

P2

P3

M1 M2 M3

P = ProductM = Market

Segment-by-SegmentInvasion Plan

Customer GroupsTruckersRailroadsAirlines

Largecomputers

Pro

du

ct V

arie

ties

Personalcomputers

Mid-sizecomputers

Company B Company CCompany A

Review

Identifying Market Segments Choosing Target Markets