Am 6 segmenting and targeting markets

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  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Chapter 7 Segmenting and Targeting Markets
  • Am 6 segmenting and targeting markets

    1. 1. 11 Segmenting andSegmenting and Targeting MarketsTargeting Markets
    2. 2. 22 Market SegmentationMarket Segmentation MarketMarket Market Segment Market Segment Market Segmentation Market Segmentation People or organizations with needs or wants and the ability and willingness to buy People or organizations with needs or wants and the ability and willingness to buy A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. The process of dividing a market into meaningful, relatively similar, identifiable segments or groups. The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
    3. 3. 33 A Market is...A Market is... (1) people or organizations with (2) needs or wants, and with (3) the ability and (4) the willingness to buy. A group of people that lacks any one of these characteristics is NOT a market.
    4. 4. 44 The Importance ofThe Importance of Market SegmentationMarket Segmentation  Markets have a variety of product needs and preferences  Marketers can better define customer needs  Decision makers can define objectives and allocate resources more accurately
    5. 5. 55 Criteria for SegmentationCriteria for Segmentation SubstantialitySubstantialitySubstantialitySubstantiality IdentifiabilityIdentifiability MeasurabilityMeasurability IdentifiabilityIdentifiability MeasurabilityMeasurability AccessibilityAccessibilityAccessibilityAccessibility ResponsivenessResponsivenessResponsivenessResponsiveness Segment must be large enough to warrant a special marketing mix. Segment must be large enough to warrant a special marketing mix. Segments must be identifiable and their size measurable. Segments must be identifiable and their size measurable. Members of targeted segments must be reachable with marketing mix. Members of targeted segments must be reachable with marketing mix. Unless segment responds to a marketing mix differently, no separate treatment is needed. Unless segment responds to a marketing mix differently, no separate treatment is needed.
    6. 6. 66 Segmentation BasesSegmentation Bases Characteristics of individuals,Characteristics of individuals, groups,groups, or organizations usedor organizations used to divide a total marketto divide a total market into segments.into segments. (variables)(variables)
    7. 7. 77 Bases for SegmentationBases for Segmentation Usage RateUsage Rate Benefits SoughtBenefits Sought PsychographicsPsychographics DemographicsDemographics GeographyGeography
    8. 8. 88 Geographic SegmentationGeographic Segmentation Segmenting markets bySegmenting markets by  region of the country/worldregion of the country/world  market sizemarket size  market densitymarket density  climateclimate
    9. 9. 99 Benefits of RegionalBenefits of Regional SegmentationSegmentation  New ways to generate sales in sluggishNew ways to generate sales in sluggish and competitive marketsand competitive markets  Scanner/POS data allow assessment ofScanner/POS data allow assessment of best selling brands in regionbest selling brands in region  Regional brands appeal to localRegional brands appeal to local preferencespreferences  React more quickly to competitionReact more quickly to competition
    10. 10. 1010 Bases for SegmentationBases for Segmentation Usage RateUsage Rate Benefits SoughtBenefits Sought PsychographicsPsychographics DemographicsDemographics GeographyGeography
    11. 11. 1111 Demographic SegmentationDemographic Segmentation Segmenting marketsSegmenting markets by age, gender, income,by age, gender, income, ethnic background,ethnic background, and family life cycleand family life cycle
    12. 12. 1212 Bases forBases for Demographic SegmentationDemographic Segmentation  AgeAge  GenderGender  IncomeIncome  Ethnic backgroundEthnic background  Family Life CycleFamily Life Cycle
    13. 13. 1313 Family Life CycleFamily Life Cycle AgeAge MaritalMarital StatusStatus ChildrenChildren
    14. 14. 1414 Family Life CycleFamily Life Cycle
    15. 15. 1515 Bases for SegmentationBases for Segmentation Usage RateUsage Rate Benefits SoughtBenefits Sought PsychographicsPsychographics DemographicsDemographics GeographyGeography
    16. 16. 1616 Psychographic SegmentationPsychographic Segmentation Market segmentation onMarket segmentation on the basis of personality,the basis of personality, motives, lifestyles, andmotives, lifestyles, and geodemographics.geodemographics.
    17. 17. 1717 Bases forBases for Psychographic SegmentationPsychographic Segmentation PsychographicPsychographic SegmentationSegmentation PsychographicPsychographic SegmentationSegmentation PersonalityPersonality MotivesMotives LifestylesLifestyles GeodemographicsGeodemographics
    18. 18. 1818 Lifestyle SegmentationLifestyle Segmentation  How time is spentHow time is spent  Importance of thingsImportance of things around themaround them  BeliefsBeliefs  SocioeconomicSocioeconomic characteristicscharacteristics
    19. 19. 1919 Geodemographic SegmentationGeodemographic Segmentation Segmenting potentialSegmenting potential customers into neighborhoodcustomers into neighborhood lifestyle categories.lifestyle categories. Combines geographic,Combines geographic, demographic, and lifestyledemographic, and lifestyle segmentation.segmentation.
    20. 20. 2020 Bases for SegmentationBases for Segmentation Usage RateUsage Rate Benefits SoughtBenefits Sought PsychographicsPsychographics DemographicsDemographics GeographyGeography
    21. 21. 2121 Benefit SegmentationBenefit Segmentation The process of groupingThe process of grouping customers into marketcustomers into market segments according tosegments according to thethe benefits they seekbenefits they seek from the product.from the product.
    22. 22. 2222 Bases for SegmentationBases for Segmentation Usage RateUsage Rate Benefits SoughtBenefits Sought PsychographicsPsychographics DemographicsDemographics GeographyGeography
    23. 23. 2323 Usage-Rate SegmentationUsage-Rate Segmentation Dividing a market by theDividing a market by the amountamount of productof product bought or consumed.bought or consumed.
    24. 24. 2424 The 80/20 PrincipleThe 80/20 Principle A principle holding thatA principle holding that 20 percent of all customers20 percent of all customers generate 80 percentgenerate 80 percent of the demand.of the demand. TargetTarget customerscustomers 20%20%Share ofShare of customerscustomers TargetTarget customerscustomers 80%80% Share ofShare of salessales
    25. 25. 2525 Business Marketing SegmentationBusiness Marketing Segmentation Four segments of business markets:Four segments of business markets:  Producers / manufacturersProducers / manufacturers  ResellersResellers  GovernmentsGovernments  InstitutionsInstitutions
    26. 26. 2626 Steps in Segmenting a MarketSteps in Segmenting a Market Select a market for study Choose bases for segmen -tation Select descri p-tors Profile and analyze segment s Select target markets Design, imple- ment, maintain mktging mix
    27. 27. 2727 Target MarketTarget Market A group of people orA group of people or organizations for which anorganizations for which an organization designs,organization designs, implements, and maintains aimplements, and maintains a marketing mix intended tomarketing mix intended to meet the needs of that group,meet the needs of that group, resulting in mutually satisfyingresulting in mutually satisfying exchanges.exchanges.
    28. 28. 2828 UndifferentiatedUndifferentiated Targeting StrategyTargeting Strategy Marketing approach thatMarketing approach that views the market as one bigviews the market as one big market with no individualmarket with no individual segments and thus requires asegments and thus requires a single marketing mix.single marketing mix.
    29. 29. 2929 UndifferentiatedUndifferentiated Targeting StrategyTargeting Strategy AdvantagesAdvantages:  Potential savings on production and marketing costs DisadvantagesDisadvantages:  Unimaginative product offerings  Company more susceptible to competition
    30. 30. 3030 Concentrated Targeting StrategyConcentrated Targeting Strategy A strategy used to select oneA strategy used to select one segment of a market (asegment of a market (a nicheniche) for targeting marketing) for targeting marketing efforts.efforts.
    31. 31. 3131 Concentrated Targeting StrategyConcentrated Targeting Strategy AdvantagesAdvantages:  Concentration of resources  Meets narrowly defined segment  Small firms can compete  Strong positioning DisadvantagesDisadvantages:  Segments too small, or changing  Large competitors may market to niche segment
    32. 32. 3232 CannibalizationCannibalization Situation that occurs whenSituation that occurs when sales of a new productsales of a new product cut into sales of acut into sales of a firm’s existing products.firm’s existing products.
    33. 33. 3333 PositionPosition The place a product, brand,The place a product, brand, or group of products occupiesor group of products occupies in consumers’ minds relativein consumers’ minds relative to competing offerings.to competing offerings.
    34. 34. 3434 PositioningPositioning Developing a specificDeveloping a specific marketing mix to influencemarketing mix to influence potential customers’ overallpotential customers’ overall perception of a brand, productperception of a brand, product line, or organization inline, or organization in general.general.
    35. 35. 3535 Product DifferentiationProduct Differentiation A positioning strategy thatA positioning strategy that some firms use to distinguishsome firms use to distinguish their products from those oftheir products from those of competitors.competitors.
    36. 36. 3636 Perceptual MappingPerceptual Mapping A means of displaying orA means of displaying or graphing, in two or moregraphing, in two or more dimensions, the location ofdimensions, the location of products, brands, or groups ofproducts, brands, or groups of products in customers’ minds.products in customers’ minds.
    37. 37. 3737 Perceptual Map and PositioningPerceptual Map and Positioning Strategy for Levi Strauss ProductsStrategy for Levi Strauss Products
    38. 38. 3838 RepositioningRepositioning Changing consumers’Changing consumers’ perceptions of a brandperceptions of a brand in relation toin relation to competing brands.competing brands.

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