2. Identify profile of distinct groups of buyers
who require separate product/marketing
mixes
3. 1. Mass marketing
Seller engages in mass production,
distribution and promotion of one product
for all buyers
Coca- Cola for many years
4. Consist large identifiable group within a
market, buyers differ in wants, purchasing
power, geographical locations, attitudes,
habits
Smokers- heavy, regular, occasional
smokers
5. Narrowly defined group a small market
whose needs are not well served
Divide segments into sub segments – Heavy
smokers
6. Marketing programs tailored to the needs
and wants of local customers groups
Citibank provides different mixes of services
– based on neighborhood, demographics
7. One to one marketing
Coppler shoes- for individual
Clothes tailor – made suit
8. Form of individual marketing – in which
individual consumer takes more
responsibility for determining which
products/brand to buy
9. Ice cream buyers asked- how much value-
sweetness and creaminess, preference
segments
Homogeneous preferences – all consumers
have same preference
Diffused preference – preferences scattered
throughout the space –vary greatly in
preferences
11. 1. Survey stage- Conducts exploratory
interviews and focus groups to gain
consumer motivations
Collect data on attributes and brand
awareness
12. 2. Analysis stage – factor analysis, data
removed, highly correlated variables
3. Profiling stage – in terms of
distinguishing attitudes, behaviour,
psychographics, dominant characteristics
13. 1. Geographic segmentation
Nation, state, region, countries, division,
local variations, Hotel customises, rooms
and lobbies according to location
14. a)Age- wants and abilities range with age
(1-3) years old, graduates
b)Gender – Clothing, hairstyling, cosmetics
and magazines, applied opportunity for
gender segmentation
c)Income- Blue collar worker- purchase
colour television, car, not bought by poor
15. d)Generation – music, movies, politics and
events
Target – baby boomers- using
communication and symbols
Cohorts – group of people, share
experiences of major external events –
deeply affected their attitudes and
preferences
16. e)Social class – strong influence in
preference in cars, clothing, home
furnishings, reading habits- design for
special class
17. Buyers divided on the basis of life style,
personality, values
a)life style – goods consume express life
style
Ex: foods segregated
18. b)Personality – product with brand
personalities
Ford buyers –independent, impulsive,
masculine, alert to change and self
confident
19. c)Values
Marketers segment by core values people’s
choice over the long term appealing
innerselves –to influence outerselves
20. a)Occasions – On the occasions they
develop
Ex: Air travel vacation
Help firms expand product usage – orange
juice, breakfast
Lunch dinner, midday, Mother’s day,
Father’s day
21. b)Benefits
3 segment – travel to be with family,
adventure, educational purposes, people
enjoy gambling, fun
Tooth paste – economy, medicinal, cosmetic
and taste
Heavy toothpaste users - conservative
22. c)User status
Non users, ex-users, potential users, first
time, regular users
Blood banks – not rely only on regular
donors to supply blood –contact first time,
ex-donors
23. d)Usage rate – into light, medium and
heavy product users
Heavy users – small percentage of market
account for high percentage of total
consumption
24. e)Loyal status
Varying degree of loyalty to specific brands,
stores/entities
Hard core loyals- buy 1 brand all the time
Split loyals – loyal to two or three brand
Shifting loyals – shift from one to another
Switchers – show no loyalty to any brand
25. f)buyer readiness stage
Some unaware, aware, some interested,
informed, some desire product, intend to
buy, advertising – make aware
27. No longer talk about average
consumer/limit analysis to few market
segments
Retired adults – distinguish on income,
asset saving, risk
Richer description of
consumers/neighborhood-education,
affluence, family life cycle, race,
urbanisation
29. On geography, benefits sought, usage rate
Ask which segment, customers to serve
Ex: Rubber industry company-decide which
industry to serve
Sell to automobiles, tractors, trucks
30. Business buyers seek different benefit
bundles on their stage in purchase decision
process
31. 1. First time prospects –customers not yet
purchased, but want to buy from a vendor
2. Novices – Customers start purchasing
relationship want to read manuals
3. Sophisticates –established customers
wants speed in maintenance, repair
32. Mature commodity markets classify – 4
business segments
1. Programmed buyers – buyers view
product not very important to operation,
routine purchase item
2. Relationship buyers –Buyers view
product- moderately important
knowledgeable about competitive offerings
33. 3. Transaction buyers – View product as
very important-price and service sensitive
4. Bargain hunters – view product
important and demand deepest discount,
highest service
34. Market segments must be
a)Measurable – size, characteristics
measured
b)Substantial – Segments must be large,
profitable to serve
c)Accessible – segments must be
effectively reached
d)Differentiable – segments distinguishable
e)Actionable –effective programmes
formulated
35. Once segmented –firm must decide how
many and which one to target
36. 1. firm must ask potential segment –has
the characteristics
2.Firm consider investing in segment makes
sense
37. 5 patterns of target market
1. Single segment concentration
Company select single segment
Volkswagen concentrate on small car
Gains strong knowledge of the segment –
High returns
38. Firm selects a number of segments (each
segment money maker) radio
broadcaster(young and older listeners)
39. Specialise in certain product sells to several
segment
Microscope manufacturer sell to university
lab, government lab, commercial lab
41. Serve all customer groups with all products,
IBM, general motors, Coca-Cola cover
whole market into 2 types
a)Undifferentiated marketing
Ignores market segment differences, mass
distribution, mass advertising
42. b)Differentiated marketing
Operates in several market segments
different programmes for each segment
Differentiated market creates more total
sales but costs higher
43. Product modification costs-modifying
product
Manufacturing cost- expensive to produce
10 products
Administration costs – develop separate
plans for each market segment
Inventory costs – costly to manage
inventories
44. Promotion costs – different promotion
programmes
Ethical choices of market targets
Segment interrelationships and super
segment
Segment by segment invasion plans
45. Meta marketing
Strategic co-ordination of economic,
psychological, political and public relation
skills
46. Appoint segment managers with sufficient
authority and responsibility for building
segments’ business
