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Mktg seg

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  • 1. Market Segmentationand Target Markets chapter 7 Harcourt, Inc.
  • 2. Objectivess Understand the concepts: market, segmentation, and target marketss Learn the advantages and disadvantages of target marketings Explain the steps in target market selection Dr. Rosenbloom
  • 3. Objectivess Discuss segmentation criteria, strategies, bases, and information sourcess Understand market profiling and positioning strategiess Discuss differences for business and international marketing Dr. Rosenbloom
  • 4. What is a market?s Individuals or organizations who: s Are willing, able, and capable of purchasing a firm’s product s Segmentation is critical because demand is often heterogeneous Dr. Rosenbloom
  • 5. What is market segmentation? s Market Segmentation s Process of dividing a large market into smaller target markets, or customer groups with similar needs and/or desires Dr. Rosenbloom
  • 6. Market SegmentationMassMarket Niche Micro- marketing The Individual entation Size f Market Segm Continuum o Personal- Micro- izationStandardized Niche marketing Marketing Mix Dr. Rosenbloom
  • 7. Target Marketings Advantages s Easier analysis of potential and actual consumers s Tailoring of products to market s Assessment of demand potential s Identify competing products s Increased sales effectiveness and cost efficiencies s Product positioning and easy identification of opportunities Dr. Rosenbloom
  • 8. Target Marketings Disadvantages s Increased marketing costs s Personalization can become burdensome to manage s Faux segmentation may be viewed cynically s Narrow segmentation can impact brand loyalty s Ethics and stereotyping issues Dr. Rosenbloom
  • 9. Target Market SelectionIdentify Total Market Determine Need for Segmentation Determine Bases for Segmentation Assess Potential ProfitabilityProfile Each Selected of Segment and Select Segment Target Segment Select Positioning Strategy Develop and Implement Appropriate Marketing Mix Monitor, Evaluate and Dr. Rosenbloom Control
  • 10. Market Criterias Segmentable markets are: s Heterogeneous s Measurable s Substantial s Actionable • Companies must be able to respond to preferences with an appropriate marketing mix s Accessible • Market must be efficiently reachable Dr. Rosenbloom
  • 11. External Factorss Stage in product life cycles Competitions Product specific issuess Market for the product Dr. Rosenbloom
  • 12. Segmentation VariablesDemographic Benefits-SoughtSegmentation Segmentation Geographic SituationSegmentation Segmentation Psychographic Behavior/UsageSegmentation Segmentation Dr. Rosenbloom
  • 13. Demographic SegmentationAge Income Level FamilyEducation Ethnicity Dr. Rosenbloom
  • 14. Demographic Segmentations Age s Some products are marketed to specific age groups Dr. Rosenbloom
  • 15. Demographic Segmentations Age s Some products are marketed to specific age groups Dr. Rosenbloom
  • 16. Demographic Segmentations Income Level s Some products are marketed to consumers with different income levels Dr. Rosenbloom
  • 17. Demographic Segmentations Income Level s Some products are marketed to consumers with different income levels Dr. Rosenbloom
  • 18. Demographic Segmentation Bartles and James Dr. Rosenbloom Hal Riney and Partners
  • 19. Demographic Segmentations Family s Some products are marketed to consumers with special family consideration • Family Life Cycle • Bachelor, marriage, married with children, retired, etc. Dr. Rosenbloom
  • 20. Functions Of Advertising KinderCare Dr. Rosenbloom The Martin Agency
  • 21. Demographic Segmentations Family s Some products are marketed to consumers with special family consideration • Family Life Cycle • Bachelor, marriage, married with children, retired, etc. Dr. Rosenbloom
  • 22. Demographic Segmentations Education s Some products are marketed to consumers with certain educational levels Dr. Rosenbloom
  • 23. Demographic Segmentations Ethnicity s Some products are marketed to consumers from specific ethnic backgrounds Dr. Rosenbloom
  • 24. Demographic Segmentations Ethnicity s Some products are marketed to consumers from specific ethnic backgrounds Dr. Rosenbloom
  • 25. Segmentation VariablesDemographic Benefits-SoughtSegmentation Segmentation Geographic SituationSegmentation Segmentation Psychographic Behavior/UsageSegmentation Segmentation Dr. Rosenbloom
  • 26. Geographic Segmentations When an organization localizes its marketing efforts to accommodate the unique needs of specific geographic regions Dr. Rosenbloom
  • 27. Geographic Segmentations When an organization localizes its marketing efforts to accommodate the unique needs of specific geographic regions Dr. Rosenbloom
  • 28. Geographic Segmentations Metropolitan Statistical Areas s An urbanized area of 50,000 and a total metropolitan area population of at least 100,000 • Charlottesville, Virginia Dr. Rosenbloom
  • 29. Geographic Segmentations Primary Metropolitan Statistical Areas s An urbanized county or cluster of counties with a population of more than 1 million • Gary/Hammond, Indiana Dr. Rosenbloom
  • 30. Geographic Segmentations Consolidated Metropolitan Statistical Area s A metropolitan area that includes at least two PMSAs • Baltimore, Maryland and Washington, D.C. Dr. Rosenbloom
  • 31. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  • 32. Psychographic Segmentation s Grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions) s PRIZM analysis from Claritas Dr. Rosenbloom
  • 33. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  • 34. Benefits-Sought Segmentations Markets can be segmented based on the benefits that consumers desire from using a specific product Dr. Rosenbloom
  • 35. Benefits-Sought Segmentation American Pork Council Dr. Rosenbloom Bozell, Incorporated
  • 36. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  • 37. Situation Segmentations Purchase situation or occasion s Physical surroundings s Social surroundings s Temporal perspective • How much time to make a purchase? s Task definition s Pre-purchase attitude Dr. Rosenbloom
  • 38. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  • 39. Behavior/Usage Segmentations Markets can be segmented by how often or how heavily consumers use a specific product s 80/20 Principle - 80% of revenue generated by 20% of customers Light Users 80% Heavy Users 20% Dr. Rosenbloom
  • 40. Segmentation Datas Internal sources s In-house customer and marketing databases s Data mine to explore patterns and relationships in collected datas External sources s Lists of catalog/magazine subscribers s U.S. Census information s Mediamark, CACI Marketing Systems, etc. Dr. Rosenbloom
  • 41. Positioning Strategys Differentiation through: s Price/quality - emphasize value in terms of quality, price, or both Dr. Rosenbloom
  • 42. Positioning Strategys Differentiation s Differentiation through: through: s Product attributes - s Symbol - use of a characteristics as a symbol or icon to positioning base position a product s Product usage - in the consumer positioning based consciousness on a products typical use Dr. Rosenbloom
  • 43. Positioning Strategys Differentiation through: s Product user - the typical user of a product Dr. Rosenbloom
  • 44. Positioning Strategys Differentiation through: s Product class - positioning against another type of product or product class Dr. Rosenbloom
  • 45. Positioning Strategys Differentiation through: s Competition - comparisons to a product’s competition (directly or indirectly) Dr. Rosenbloom
  • 46. Segmenting Business Marketss Demographics s Industry size, growth potential, etc.s Operating Characteristics s Technology, brand-user status, etc.s Purchasing Approaches s Purchasing policies, size of orders, etc. Dr. Rosenbloom
  • 47. Segmenting Business Marketss Product Use or Usage Situation s The way the product will be used and customer service levels requireds Situational Factors s Urgency, special product usess Buyer’s Personal Characteristics Dr. Rosenbloom
  • 48. Segmenting Global Marketss Economic s Stage of development in a host countrys Political/Legal s Regulations and lawss Cultural s Language barriers, differences in consumer customs Dr. Rosenbloom
  • 49. Segmenting Global Marketss Some segments transcend national borders s Rich around the world s Older and comfortable s Indulged kids s Emerging middle class s Women employed outside the house Dr. Rosenbloom
  • 50. Market Segmentations Differentiateds Concentrateds Undifferentiated Dr. Rosenbloom
  • 51. Differentiated Marketings Differentiated Marketing s An organization targets multiple market segments and develops segment specific mixes Dr. Rosenbloom
  • 52. Concentrated Marketings Concentrated Marketing s When an organization concentrates its marketing efforts on a smaller segment of a larger market Dr. Rosenbloom
  • 53. Undifferentiated Marketings Undifferentiated Marketing s An organization develops one strategy appropriate for all members of the total market Dr. Rosenbloom