Segmentation, Targeting and Differentiation Prepared and Presented by: Lyncia Noronha 40 Palak Goyal 42 SYBMS
Jan 19, 2015
Segmentation, Targeting and Differentiation
Prepared and Presented by:
Lyncia Noronha 40
Palak Goyal 42
SYBMS
Segmentation
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Meaning
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them.
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Product differentiation
Market segments allow companies to create product differentiation strategies to target them.
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Market Segmentation Strategies
Traditional Approaches to Market Segmentation Mass Marketing Differentiated Marketing
Multisegment Approach Market Concentration Approach
Niche Marketing
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Bases for SegmentingConsumer Markets
Behavioral Segmentation Segments based on actual behavior or
product usage Demographic Segmentation
Segments based on demographic factors (e.g., gender, age, income, education, etc.)
Psychographic Segmentation Segments based on state-of-mind issues
(e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.)
Geographic Segmentation Segments based on geographic location
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Segmenting Consumer Markets
Sometimes, multiple attributes are combined to form segments
Multi-attribute segmentation via geoclustering combines multiple variables to identify smaller, better-defined target groups PRIZM Geoclustering system uses
demographic, geographic, lifestyle, and behavioral characteristics
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Segmenting Business Markets
Rackman and Vincentis proposed a segmentation scheme that classifies business buyers into three groups: Price-oriented customers: best served via
transactional selling Solution-oriented customers: best served by
means of consultative selling Strategic-value customers: best served by
means of enterprise selling
Segmentation, Marketing Mix, and Targeting
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Creating the Marketing Mix
PRODUCT
PLACE
PROMOTION
PRICE
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Goals for Marketing Mix
Create synergies Use resources
effectively Maintain consistent and
differentiated image Link to specific
marketing goals and objectives
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Mass Marketing Strategy
SingleMarketing Mix
All Customersin the Market
Product
Price Distribution
Promotion
Undifferentiated
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Multisegment Strategy
MultipleMarketing
Mixes
More Than OneMarket
Segment
Product
Price Distribution
Promotion
Product
Price Distribution
Promotion
Differentiated
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Market Concentration Strategy
SingleMarketing Mix Focused on a Single
Market Segment
Product
Price Distribution
Promotion
Differentiated
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Niche Marketing Strategy
SingleMarketing Mix
Focused on a SmallNiche Market Segment
Product
Price Distribution
Promotion
Differentiated
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Customized Marketing Strategy
UniqueMarketing
Mixes
IndividualCustomer
s
Product
Price Distribution
Promotion
Product
Price Distribution
Promotion
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Five basic strategies for target market selection: (1) Single Segment Targeting (2) Selective Targeting (3) Mass Market Targeting (4) Product Specialization (5) Market Specialization
Target Marketing Strategies
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Basic Target Marketing Strategies
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Can you think of a product that could be marketed effectively using a mass marketing approach? If so, explain and justify your answer. If not, what types of changes would have to be made to the product to make it appropriate for a mass marketing approach?
Discussion Question
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Discussion Question
Many consumers and consumer advocates are critical of the one-to-one marketing approach due to personal privacy concerns. Marketers counter that one-to-one marketing can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks. Where do you stand on this issue? Why?
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Discussion Question
What are some of the ethical and legal issues involved in targeting sensitive groups such as children and seniors?
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