Objectives Identifying Market Segments Choosing Target Markets 2000
Objectives ä Identifying Market Segments ä Choosing Target Markets © 2000 Prentice Hall
Steps in Market Segmentation, Targeting, and Positioning Market Segmentation 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments © 2000 Prentice Hall Market Targeting 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Positioning 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept
Basic Market-Preference Patterns Sweetness © 2000 Prentice Hall (c) Clustered preferences Creaminess (b) Diffused preferences Creaminess (a) Homogeneous preferences Sweetness
Market-Segmentation Procedure ¶Survey ä Motivations ä Attitudes ä Behavior ·Analysis ä Factors ä Clusters ¸Profiling © 2000 Prentice Hall
Bases for Segmenting Consumer Markets Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income. . . Psychographic Lifestyle or Personality Behavioral Occasions, Benefits, Uses, or Attitudes © 2000 Prentice Hall
Bases for Segmenting Business Markets ä Demographic ä Operating Variables ä Purchasing Approaches ä Situational Factors ä Personal Characteristics © 2000 Prentice Hall
Effective Segmentation Measurable • Size, purchasing power, profiles of segments can be measured. Substantial • Segments must be large or profitable enough to serve. Accessible Differential Actionable © 2000 Prentice Hall • Segments can be effectively reached and served. • Segments must respond differently to different marketing mix elements & actions. • Must be able to attract and serve the segments.
Heavy and Light Users of Common Consumer Products PRODUCT (% USERS) Soups and detergents (94%) HEAVY HALF LIGHT HALF 75% 25% Toilet tissue (95%) 71% 29% Shampoo (94%) 79% 21% Paper towels (90%) 75% 25% Cake mix (74%) 83% 17% Cola (67%) 83% 17% Beer (41%) 87% 13% Dog food (30%) 81% 19% Bourbon (20%) 95% © 2000 Prentice Hall 5%
Additional Segmentation Criteria ä Ethical Choice of Market Targets ä Segment Interrelationships & Supersegments ä Segment-by-Segment Invasion Plans ä Intersegment Cooperation © 2000 Prentice Hall
Five Patterns of Target Market Selection Single-segment concentration P 1 M 2 M 3 Product specialization Selective specialization M 1 M 2 M 3 P 1 P 2 P 2 P 3 P 3 Market specialization Full market coverage M 1 M 2 M 3 P = Product M = Market © 2000 Prentice Hall M 1 M 2 M 3 P 1 P 2 P 3
Segment-by-Segment Invasion Plan Customer Groups Product Varieties Airlines Railroads Truckers Large computers Mid-size computers Personal computers Company A © 2000 Prentice Hall Company B Company C
Review ä Identifying Market Segments ä Choosing Target Markets © 2000 Prentice Hall
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