Segmentation & Targetting

8/11/2019 Segmentation & Targetting

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IDENTIFYING MARKET

SEGMENTS AND TARGETS


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Target Marketing

Target marketing requires marketers totake three major steps:

Identify and profile distinct groups of buyerswho differ in their needs and preferences

(market segmentat ion). Select one or more market segments to enter

(market target ing).

For each target segment, establish and

communicate the key distinctive benefit(s) ofthe companys market offering (marketposi t ion ing).


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Using Market Segmentation

Segment Marketing

Niche Marketing

Local Marketing

Individual Marketing

Levels of Micromarketing


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What is a Market Segment?

A market segmentconsists of a group

of customers who share a similar set of

needs ad wants.

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What is Customerization?

Customerizationcombines operationally

driven mass customization with customized

marketing in a way that empowers

consumers to design the product and serviceoffering of their choice.
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Preference Segments

Homogeneous preferencesexist when

consumers want the same things

Diffused preferencesexist when consumers

want very different things

Clustered preferencesreveal natural

segments from groups with shared

preferences

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Using Market Segmentation

Basic Market-Preference Patterns


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Steps in Segmentation Process

Needs-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

Marketing-Mix

Strategy

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Segmenting Consumer Markets

Bases forSegmentation

Geographic

Demographic Psychographic

Behavioral

Age, race, gender

Income, education

Family size

Family life cycle

Occupation

Religion, nationality Generation

Social class


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Geographic


Behavioral

Lifestyle

Activities

Interests

Opinions

Personality

Core values


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Geographic


Behavioral

Occasions

Benefits User status

Usage rate

Loyalty status

Buyer-readiness Attitude


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Segmentation

Measurable Actionable

Substantial Accessible

Differentiable

Characteristics of Effective Segments


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Market Targeting Strategies

Evaluating and selecting market segments

requires assessing the segments overall

attractiveness in light of companys objectives and

resources.

Five patterns of target market selection can then

be considered.


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Market Targeting Strategies

Five Patterns o f Target Market Select ion


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Segmentation & Targetting

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