Chapter 9kisi.deu.edu.tr/banu.atrek/MBA 5011 Strategic Marketing Management... · Chapter 9...

Copyright © 2016 Pearson Education Ltd. 9-1

Chapter 9

IdentifyingMarket Segments

and Targets


Bases for Segmenting Consumer Markets

• Market segment– A group of customers who share a similar set

of needs and wants

Geographic segmentation

Psychographic segmentation

Demographic segmentation

Behavioral segmentation


Geographic Segmentation

• Geographical units– Nations, states, regions, counties, cities, or

neighborhoods• Nielsen Claritas’ PRIZM

– Education and affluence– Family life cycle– Urbanization– Race and ethnicity– Mobility

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Geographic Segmentation


Demographic Segmentation

Age & life-cycle stage Life stage

Gender

IncomeGeneration

Race & culture



• Age and life-cycle stage– Our wants and abilities change with age

• Life stage– A person’s major concern (e.g., divorce)



• Gender– Men and women have

different attitudes and behave differently

• Income– Income segmentation is

a long-standing practice

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Demographic Segmentation• Generation

Millennials (Gen Y)Selective, confident, and impatient

1977 and 1994Student Ambassadors

Street TeamsCool Events

Baby Boomers1946 and 1964

“Fifty is the new thirty.”

Gen X1964-1978

Pragmatic and individualistic

Silent Generation1925 and 1945



• Race and culture

Hispanic Americans

African Americans

Asian Americans

LGBT

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Psychographic Segmentation

• Buyers are divided into groups on the basis of psychological/personality traits, lifestyle, or values


PSYCHOGRAPHIC SEGMENTATION

VF Corporation offers a closet full of more than30 premium lifestyle brands.


Figure 9.1: VALSSegmentation System

Experiencers-Young, ambitous, rebellian, react with emotions. They spend a comparatively high proportion of income on fashion, entertainment, andsocializing

Believers-Conservative, traditional, obedient

Survivors—Elderly, passive people concerned about change and loyal to their favorite brands



BEHAVIORAL SEGMENTATION

• Marketers divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or response to a product



• Needs and benefits



• Decision roles– Initiator– Influencer– Decider– Buyer– User



Schwinn makes bikes for every benefit segment.

Seven major benefit groups: cruisers, hybrid, bike path, mountain, road, urban, and kids.


USER AND USAGE-RELATEDVARIABLES

Occasions User status

Usage rate

Buyer-readiness

stage

Loyalty status

Attitude

nonusers, ex-users, potential users,

first-time users, and regular users

light, medium, and heavy

product users.

unaware, aware, informed, interested,

intention to buy

enthusiastic, positive,

indifferent, negative, and

hostile


Figure 9.3Behavioral Segmentation Breakdown


How Should Business Markets Be Segmented?

Demographic Operating variables Purchasing approaches Purchasing approaches Situational factors Personal characteristics



Market targeting


EffectiveSegmentation Criteria

Measurable (size, purchasing power, and characteristics )

Substantial (large and profitable enough to serve)

Accessible

Differentiable (distinguishable and respond differently to different marketing mix elements and programs)

Actionable (effective programs can be formulated forattracting and serving the segments)


Porter’s five forces

Threat of Rivalry

Threat of SupplierBargaining Power

Threat of Buyer Bargaining Power

Threat of New Entrants

Threat of Substitutes


Evaluating & Selecting the Market Segments

• Figure 9.4: Possible Levels of Segmentation


One-to-one marketing

Identify your prospects and customers

Differentiate customers in terms of their needs and value to your company

Interact to improve your knowledge about customers’ needs and to build relationships

Customize products, services,and messages to each customer


Legal and Ethical Issues

• Marketers must avoid consumer backlash– Labeling consumers– Vulnerable groups – Disadvantaged groups– Potentially harmful

products

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