8 Identifying Market Segments and Targets Marketing Management
- Slides: 31
8 Identifying Market Segments and Targets Marketing Management, 13 th ed
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? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -2
Baby Boomers: A Lucrative Market Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -3
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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -4
Ford’s Model T Followed a Mass Market Approach Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -5
Four levels of Micromarketing Segments Niches Local areas Individuals Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -6
What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs ad wants. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -7
Gather. com: A Niche Social Networking Site Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -8
Flexible Marketing Offerings • Naked solution: • Discretionary Product and service options: Some elements that all segment members value options but value not all Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -9
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 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -10
Niche Marketers Enterprise Rent-A-Car targets the insurancereplacement market Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -11
Baskin Robbins Focuses on Local Marketing Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -12
The Long Tail • Chris Anderson explains the long tail equation: • The lower the cost of distribution, the more you can economically offer without having to predict demand; • The more you can offer, the greater the chance that you will be able to tap latent demand for minority tastes; and • Aggregate enough minority taste, and you may find a new market. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -13
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. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -14
Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -15
Claritas’ Prizm • • • Education and affluence Family life cycle Urbanization Race and ethnicity Mobility Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -16
Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -17
Toyota Scion Targets Gen Y Consumers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -18
Dove Targets Women Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -19
Figure 8. 1 The VALS Segmentation System Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -20
Behavioral Segmentation Decision Roles • Initiator • Influencer • Decider • Buyer • User Behavioral Variables • Occasions • Benefits • User Status • Usage Rate • Buyer-Readiness • Loyalty Status • Attitude Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -21
The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage • • • Aware Ever tried Recent trial Occasional user Regular user Most often used Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -22
Loyalty Status Hard-core Split loyals Shifting loyals Switchers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -23
Figure 8. 3 Behavioral Segmentation Breakdown Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -24
The Conversion Model Convertible Shallow Users Strongly unavailable Weakly unavailable Average Entrenched Nonusers Ambivalent Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Available 8 -25
Segmenting for Business Markets Demographic Operating Variable Purchasing Approaches Situational Factors Personal Characteristics Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -26
Steps in Segmentation Process Needs-based segmentation Segment identification Segment attractiveness Marketing-Mix Strategy Segment profitability Segment positioning Segment acid test Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -27
Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -28
Pepsi used Megamarketing in India Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -29
Marketing Debate ü Is mass marketing dead? Take a position: 1. Mass marketing is dead. or 2. Mass marketing is still a viable way to build a profitable brand. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -30
Marketing Discussion ü Think of various product categories. ü How would you classify yourself in terms of the various segmentation schemes? ü How would marketing be more or less effective for you depending upon the segment involved? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8 -31
- Identifying market segments and targets chapter 9
- Identifying market segments and targets
- Identifying market segments and targets chapter 9
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