Market Segmentation Chapter 8 Market Segmentation n n

Market Segmentation Chapter 8

Market Segmentation n n What is it? Segments should n n Source: http: //www. b 2 binternational. com n n Have common needs Respond similarly to a marketing action Product differentiation Market-product grid

Market Segmentation n Segmentation Criteria Substantiality n Identifiability n Accessibility n Responsiveness n

Potential Buyers into Segments n Ways to Divide the Market n n n Region Age/ household size Lifestyle Benefits sought Usage rate n 80/20 rule

Bases for Consumer Segmentation n n Geographic segmentation Demographic segmentation n Age segmentation Tweens n Generation Y n Generation X n Baby Boomers n

Bases for Consumer Segmentation n Demographic segmentation (cont’d) n Gender segmentation n Income segmentation n n Why used? Ethnic segmentation n n Men Women Ramifications Family life cycle segmentation n Increasing role of single adults Source: http: //hashtagsocialmedia. com

Bases for Consumer Segmentation n Psychographic segmentation n n Personality Motives Lifestyles Geodemographics n n Benefit segmentation n n Claritas PRIZM Snack food market Usage rate segmentation n 80/20 rule

Bases for Organizational Segmentation n Company characteristics Geography n Industry (NAICS) n Size n Product use n n Buying process What are they looking for? n Optimizers v. satisficers n

Strategies to Select Target Market n Undifferentiated targeting n n Concentrated targeting n n One marketing mix for entire market One particular segment Multisegment targeting n Wal-mart n n Brand aspirationalists, price sensitive affluents, value price shoppers One-to-one marketing n Individualized

Positioning n n n Product differentiation Perceptual map Repositioning n n Wal-mart Mountain Dew Source: http: //mergevisual. blogspot. com