8/2/2019 Identifying Market Segments and Targets-Lec1
1/12
8
Identifying MarketSegments and Targets
Lec#1
1
8/2/2019 Identifying Market Segments and Targets-Lec1
2/12
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2
Chapter Questions
What are the different levels of marketsegmentation?
How can a company divide a market into
segments? What are the requirements for effective
segmentation?
How should business markets be segmented? How should a company choose the most
attractive target markets?
8/2/2019 Identifying Market Segments and Targets-Lec1
3/12
Introduction
Concept of Mass Marketing
Effectively utilized by different companiessuch as Coca Cola, Ford etc
Creates large market potential, low cost.
Nowadays customer are more and more
changing
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-3
8/2/2019 Identifying Market Segments and Targets-Lec1
4/12
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-4
What is a Market Segment?
A market segment consists of a groupof customers who share a similar set of
needs and wants.
Cars market
Marketers do not create a segment
The task is to identify segment and
decide which one to target
8/2/2019 Identifying Market Segments and Targets-Lec1
5/12
CHP: 8&10-5
Steps in Market Segmentation,Targeting, and Positioning
Market Segmentation1. Identify bases for
segmenting the market
2. Develop segment profiles
Market Targeting3. Develop measure of
segment attractiveness4. Select target segments
Market positioning5. Develop positioning for
target segments6. Develop a marketing
mix for each segment
8/2/2019 Identifying Market Segments and Targets-Lec1
6/12
CHP: 8&10-6
Four levels of Micromarketing
Segments
Local areas Individuals
Niches
8/2/2019 Identifying Market Segments and Targets-Lec1
7/12
CHP: 8&10-7
Segment Marketing
Targeting a group of customerswho share a similar set ofneeds and wants.
- Segment and Sector
8/2/2019 Identifying Market Segments and Targets-Lec1
8/12
CHP: 8&10-8
Basic Market Preference Patterns
8/2/2019 Identifying Market Segments and Targets-Lec1
9/12
CHP: 8&10-9
Niche Marketing
A Niche is a more narrowly defined customer group seeking
Distinctive mix of benefits.
Marketers usually identify niches by dividing a segment into sub-Segments. E.g., Cleveland's Progressive auto insurer
It is assumed that globalization and internet has enhanced the
Concepts of Niche Marketing. E.g., stamps.co.uk, etc
8/2/2019 Identifying Market Segments and Targets-Lec1
10/12
Local Marketing
Targeting the needs and wants of localcustomer groups (trading areas,neighborhoods, even individual stores).
Also called grassroots marketing Nikes initial success
Usually in the form of experiential marketing.
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-10
8/2/2019 Identifying Market Segments and Targets-Lec1
11/12
CHP: 8&10-11
Customerization
Combines operationally drivenmass customization with customizedmarketing in a way that empowersconsumers to design theproduct and service offeringof their choice.
8/2/2019 Identifying Market Segments and Targets-Lec1
12/12
CHP: 8&10-12
Examples of MarketCustomization