Identifying Market Segments and Selecting Target Markets
Objectives <ul><li>Identifying Market Segments </li></ul><ul><li>Choosing Target Markets </li></ul>
Steps in Market Segmentation, Targeting,and Positioning 1. Identify segmentation variables and segment the market 2. Devel...
Basic Market-Preference Patterns (a) Homogeneous preferences Sweetness Creaminess (c) Clustered preferences Creaminess Swe...
Market-Segmentation Procedure <ul><li>Survey </li></ul><ul><ul><li>Motivations </li></ul></ul><ul><ul><li>Attitudes </li><...
Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro ...
Bases for Segmenting Business Markets <ul><li>Demographic </li></ul><ul><li>Operating Variables </li></ul><ul><li>Purchasi...
Effective Segmentation Measurable Accessible Substantial Differential Actionable <ul><li>Segments must be large or  profit...
Heavy and Light Users of Common Consumer Products HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94...
Additional Segmentation Criteria <ul><li>Ethical Choice of Market Targets </li></ul><ul><li>Segment Interrelationships & S...
Five Patterns of Target Market Selection Single-segment concentration Product specialization M1  M2  M3  P1 P2 P3 Selectiv...
Segment-by-Segment Invasion Plan Customer Groups Truckers Railroads Airlines Large computers Product Varieties Personal co...
Review <ul><li>Identifying Market Segments </li></ul><ul><li>Choosing Target Markets </li></ul>
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Market segmentation ppt

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Transcript of "Market segmentation ppt "

  1. 1. Identifying Market Segments and Selecting Target Markets
  2. 2. Objectives <ul><li>Identifying Market Segments </li></ul><ul><li>Choosing Target Markets </li></ul>
  3. 3. Steps in Market Segmentation, Targeting,and Positioning 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Segmentation 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Targeting 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept Market Positioning
  4. 4. Basic Market-Preference Patterns (a) Homogeneous preferences Sweetness Creaminess (c) Clustered preferences Creaminess Sweetness (b) Diffused preferences Creaminess Sweetness
  5. 5. Market-Segmentation Procedure <ul><li>Survey </li></ul><ul><ul><li>Motivations </li></ul></ul><ul><ul><li>Attitudes </li></ul></ul><ul><ul><li>Behavior </li></ul></ul><ul><li>Analysis </li></ul><ul><ul><li>Factors </li></ul></ul><ul><ul><li>Clusters </li></ul></ul><ul><li>Profiling </li></ul>
  6. 6. Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic
  7. 7. Bases for Segmenting Business Markets <ul><li>Demographic </li></ul><ul><li>Operating Variables </li></ul><ul><li>Purchasing Approaches </li></ul><ul><li>Situational Factors </li></ul><ul><li>Personal Characteristics </li></ul>
  8. 8. Effective Segmentation Measurable Accessible Substantial Differential Actionable <ul><li>Segments must be large or profitable enough to serve. </li></ul><ul><li>Segments can be effectively reached and served. </li></ul><ul><li>Size, purchasing power, profiles of segments can be measured. </li></ul><ul><li>Segments must respond differently to different marketing mix elements & actions. </li></ul><ul><li>Must be able to attract and serve the segments. </li></ul>
  9. 9. Heavy and Light Users of Common Consumer Products HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94%) 25% 29% 79% 21% Toilet tissue (95%) Shampoo (94%) 75% 25% 17% 17% Paper towels (90%) Cake mix (74%) Cola (67%) 83% 83% 13% 5 % 87% 19% Beer (41%) Dog food (30%) Bourbon (20%) 81% 95%
  10. 10. Additional Segmentation Criteria <ul><li>Ethical Choice of Market Targets </li></ul><ul><li>Segment Interrelationships & Supersegments </li></ul><ul><li>Segment-by-Segment Invasion Plans </li></ul><ul><li>Intersegment Cooperation </li></ul>
  11. 11. Five Patterns of Target Market Selection Single-segment concentration Product specialization M1 M2 M3 P1 P2 P3 Selective specialization M1 M2 M3 P1 P2 P3 M1 M2 M3 Full market coverage P1 P2 P3 Market specialization M1 M2 M3 P1 P2 P3 P1 P2 P3 M1 M2 M3 P = Product M = Market
  12. 12. Segment-by-Segment Invasion Plan Customer Groups Truckers Railroads Airlines Large computers Product Varieties Personal computers Mid-size computers Company B Company C Company A
  13. 13. Review <ul><li>Identifying Market Segments </li></ul><ul><li>Choosing Target Markets </li></ul>
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