Market Segmentation, Targeting, Positioning<br />Marketing Chapter 9<br />
Target Market	<br />Specific segment of consumers most likely to purchase a particular item<br />Market<br />People with s...
Types of Markets<br />Consumer<br />Purchased by the ultimate consumer for personal use.<br />Business<br />Purchased to b...
Market Segmentation<br />Dividing the total market into several homogeneous groups.<br />	No single marketing mix can sati...
Geographic Segmentation<br />Dividing market on basis of location of population<br />US population is concentrated in stat...
Using Geographic Segmentation<br />Demand for some goods vary according to region<br />Residence location<br />Climate<br ...
Demographic Segmentation<br />Segmenting by:<br />	Gender<br />	Age<br />	Ethnic Group<br />	Family Life-cycle<br />	House...
Segmenting by Age<br />Cohort effect<br />Members of a generation which are bound together by significant events occurring...
School Age Children<br />Under the age of 12<br />Make choices about food, toys, clothing<br />
Tweens & Teens (Preteens)<br /><ul><li>Also known as Generation Y or Millenials
Current teens to 25 year olds
Racially diverse
Grew up with internet
‘Interactive’ describes them
¼ live in single parent household
¾ have mothers who work
71 million
Cell phones, text
Music
Snacks and Soft Drinks
Clothing
Music
Electronics</li></li></ul><li>Generation X born between 1966-1981<br /><ul><li>50 million
Family Oriented
Facing financial issues
Well Educated
Comfortable with internet, technology
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Ch 9

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Ch 9

  1. 1. Market Segmentation, Targeting, Positioning<br />Marketing Chapter 9<br />
  2. 2. Target Market <br />Specific segment of consumers most likely to purchase a particular item<br />Market<br />People with sufficient purchasing power, authority, and willingness to buy<br />
  3. 3. Types of Markets<br />Consumer<br />Purchased by the ultimate consumer for personal use.<br />Business<br />Purchased to be used in the production of other goods & services for resale.<br />Are these consumer products or business products?<br />
  4. 4. Market Segmentation<br />Dividing the total market into several homogeneous groups.<br /> No single marketing mix can satisfy everyone.<br />Geographic<br />Demographic<br />Psychographic<br />Product Related<br />Targeting a Specific Marketing Segment<br />
  5. 5. Geographic Segmentation<br />Dividing market on basis of location of population<br />US population is concentrated in states with large metropolitan areas<br />Major population shifts<br />To the Sunbelt States<br />To the West<br />Regional Preferences<br />
  6. 6. Using Geographic Segmentation<br />Demand for some goods vary according to region<br />Residence location<br />Climate<br />GIS<br />Segmentation by Residence Location<br />
  7. 7. Demographic Segmentation<br />Segmenting by:<br /> Gender<br /> Age<br /> Ethnic Group<br /> Family Life-cycle<br /> Household type<br /> Census Bureau<br />http://www.census.gov<br />
  8. 8. Segmenting by Age<br />Cohort effect<br />Members of a generation which are bound together by significant events occurring during formative years, 17-22.<br />9/11 Generation- those 17-22 on Sept. 11, 2001.<br />
  9. 9. School Age Children<br />Under the age of 12<br />Make choices about food, toys, clothing<br />
  10. 10. Tweens & Teens (Preteens)<br /><ul><li>Also known as Generation Y or Millenials
  11. 11. Current teens to 25 year olds
  12. 12. Racially diverse
  13. 13. Grew up with internet
  14. 14. ‘Interactive’ describes them
  15. 15. ¼ live in single parent household
  16. 16. ¾ have mothers who work
  17. 17. 71 million
  18. 18. Cell phones, text
  19. 19. Music
  20. 20. Snacks and Soft Drinks
  21. 21. Clothing
  22. 22. Music
  23. 23. Electronics</li></li></ul><li>Generation X born between 1966-1981<br /><ul><li>50 million
  24. 24. Family Oriented
  25. 25. Facing financial issues
  26. 26. Well Educated
  27. 27. Comfortable with internet, technology
  28. 28. Optimistic
  29. 29. Not as Defined by Career as Previous Generation
  30. 30. More Technologically Advanced Than Previous Generation
  31. 31. Very Peer Influenced
  32. 32. Concerned with social issues & protecting environment</li></li></ul><li>Baby Boomers<br />Born 1946-1965<br />78 million with a lot of money<br />Influenced by Vietnam War, nostalgia, retro, oldies<br />Have large amounts of disposable income<br />Career driven<br />Healthier and more physically active than previous generations, value health & quality of life<br />Buy nostalgic, retro products<br />Quick to buy ‘new’ products & technology<br />
  33. 33. Seniors – over 65<br />Graying of America- <br /> living longer<br />20% by 2025 over 65<br />Control ¾ of the US assets<br />Difficult to advertise to<br />Buy & travel, healthcare, <br /> recreation<br />Targeting Older Consumers<br />
  34. 34. Segmentation based on gender<br />
  35. 35. Several Web-Sites Aimed at Senior Citizens<br />
  36. 36. Segmentation based on<br />age<br />
  37. 37. Segmenting by Ethnic Group<br />African American <br />Hispanic – nearly 48 million<br />Fastest growing segment<br />Asian Americans<br />Approx. 18 million<br />Highest per household income<br />Concentrated in west coast<br />Native Americans<br />
  38. 38. Ad Aimed at Customers Who Prefer to Speak and Read Spanish: Segmenting by Racial/Ethnic Group<br />
  39. 39. Segmenting by Family Life Cycle<br />Family formation & dissolution<br />Unmarried, setting up household for the first time<br />Young single living<br />Married couples- no children<br />Birth of first child<br />Divorced, single household<br />Empty nesters<br />
  40. 40. La-Z-BoyTargeting Families with Small Children<br />
  41. 41. Segmenting by Household Type<br />Average household size is shrinking in US & globally<br />Two parent households have declined<br />Targeting Smaller Households<br />
  42. 42. Engel’s Laws<br />As household income increases:<br />A smaller % is spent on food<br />% spent on housing & clothing remains the same<br />% spent on other (recreation & education) increases<br />
  43. 43. Demographic Segmentation Abroad<br />Some countries don’t take a census regularly<br />Some countries collect religious affiliation, others don’t collect income data<br />Targeting High-Income Groups<br />
  44. 44. Psychographic Segmentation<br />Lifestyle or mode of living<br />Psychological make-up<br />Needs, motives, perceptions, attitudes<br />AIO – activities, interests, opinions<br />VALS – values, attitudes, lifestyles<br />
  45. 45. Product Related Segmentation<br />Based on:<br />Benefits<br />Usage Rates<br />Degree of brand loyalty<br />
  46. 46. Strategies for Reaching Target Markets<br />Undifferentiated<br />One product or one product line marketed to all customers with a single marketing mix<br />Differentiated<br />Numerous products with different marketing mixes<br />Concentrated or Niche Marketing<br />Focus efforts on satisfying smaller target markets<br />Micro-marketing<br />Targeting potential customers at very basic level<br />
  47. 47. Positioning<br />Placing a product in a certain position in the minds of prospective buyers to differentiate it from the competitor. <br />

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