Post on 14-Apr-2017
transcript
Identifying Market Segments
and Targets
8
Marketing ManagementA South Asian Perspective, 13th ed
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-2
Chapter Questions
• What are the different levels of market segmentation?
• How can a company divide a market into segments?
• How should a company choose the most attractive target markets?
• What are the requirements for effective segmentation?
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Effective Targeting Requires…
• 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
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Ford’s Model T Followed a Mass Market Approach
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Four levels of Micromarketing
Segments
Local areas Individuals
Niches
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What is a Market Segment?
A market segment consists of a group of customers who share a similar set of needs ad wants.
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Gather.com: A Niche Social Networking Site
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Preference Segments
• Homogeneous preferences exist when consumers want the same things
• Diffused preferences exist when consumers want very different things
• Clustered preferences reveal natural segments from groups with shared preferences
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The Himalaya Drug Company serves a
growing niche market by focusing
on ayurvedic medicines and
health supplements
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What is Customerization?
Customerization combines operationally driven mass customization with customized
marketing in a way that empowers consumers to design the product and service
offering of their choice.
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United Bank Ltd. of
Pakistan offers customized
Galleria credit cards to its customers
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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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Bank Al Habib targets
senior citizens
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Dove Targets Women
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Behavioral Segmentation
Decision Roles• Initiator• Influencer• Decider• Buyer• User
Behavioral Variables• Occasions• Benefits• User Status• Usage Rate• Buyer-Readiness• Loyalty Status• Attitude
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The Brand Funnel Illustrates Variations in the
Buyer-Readiness Stage
• Aware• Ever tried• Recent trial• Occasional user• Regular user• Most often used
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Loyalty Status
Switchers
Shifting loyals
Split loyals
Hard-core
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Figure 8.3 Behavioral Segmentation Breakdown
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Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
PersonalCharacteristics
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Steps in Segmentation Process
Needs-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Marketing-MixStrategy
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Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
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Figure 8.4 Patterns of Target Market Selection
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Figure 8.4 Patterns of Target Market Selection
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Figure 8.4 Patterns of Target Market Selection
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The Revolution brand of ready-made women’s
apparel successfully
focuses on the niche segment of plus-size clothes.
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Figure 8.5 Segment-by-Segment Invasion Plan
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Pepsi used Megamarketing in India