PROCESS OF SEGMENTING MARKET

AND MARKET SEGMENTATION

DR. MARITA G. SANCHEZCVCITC, SANTIAGO CITY

PHILIPPINES 3311

Objectives

What is Market Segmentation? Enumerate the advantages of Market

Segmentation? Discuss some marketing strategies in

selecting Target Markets Illustrate the steps of segmenting

markets. Conclude and apply market segmentation

on the given examples of specific market segments suitable for a Target audience.

Check on the images below and answer the questions:

What are the products that you see in these pictures?

What market segments are best fit for these products?

Why do you need targeting your market?

BEER

WATERPROOF WRIST WATCH

SOFTDRINKS

TRUST

PROMO

TESTIMONY

COMPARISON

SERVICE

LOVE AND HOPE

FRAGRANCE

PASSION

QUALITY SHOES

FLAT TV SCREEN

OPTICAL ZOOM IN CAM

What did you noticed?

The selling propositions were not only centered on the physical features of the product but also on its intrinsic values

There were specific functions, characteristics and significant uses of the actual product(s) that must be differentiated among others

Not all the brand, brand names and trade marks were shown in the images but those that require observers to be keen in observing the facts about the product(s) were shown

Market Segmentation Versus Market Segment

Market Segment- is a subgroup of a particular market composed of units with more or less similar characteristics.

Market Segmentation is the process of identifying the various segments of a company’s particular market.

Explanation

In a market segment identified, those that have the nerve to react during their observation of the images are those whom you are going to include in your list of potential market for that market segment of your product

There are particular market segments that you need to reach out in order to have effective sales, advertising, and promotions

Advantages of Market Segmentation

Awareness of realities in the market

Clues on designs of products and marketing programs

Opportunities for new product development

Improve Strategic Allocation of marketing resources

Segmentation Strategies

Concentration on Single Segment Strategy

Multi-Segment Strategy

Process of Segmenting Markets

Identification by Characteristics of prospective Customers

Determination to which Extent of Differences in their Needs and Benefits

Evaluation of present and future Attractiveness of each segment

Bases for Market Segmentation

Buyer Readiness and Marketing TasksStag

e Buyer

ReadinessEffect on Buyer Behavior Marketing Task

1 Unaware Don’t Buy Convert to Stage 2

2 Aware Slight Idea, may lead to actual purchase

Convert to Stage 3

3 Informed More Knowledge, Chance of Buying

Convert to Stage 4

4 Interested

Wants to Evaluate, chance of actual Buying

Convert to Stage 5

5 Desirous Wants to have, Hindrance

Convert to Stage 6 if Ability to Pay

6 Intends to Buy

Wants to Purchase Convert intention to Consummated Sale and keep Interest

LET US PLAY

DIRECTION (Application)1. From the pictures given, identify a

market segment that can be applicable, then give a strategy that can be used by a marketer.

2. Give your basis in segmenting the market, then give example of a stage in Buyer Readiness where Effect and Marketing Task would be made possible. Follow our examples given.

Assignment

Marketing Information System and Marketing Research , Marketing Research Process

Steps for Marketers to Decide based on Information

Prin. Of marketing by Roberto Medina (2008)

pp. 84-94