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Identifying Market Segments and Targets<br />Carisse Diana A. Drilon<br />ASMPH MD-MBA<br />May 11, 2010<br />
Outline:<br />Why identify?<br />Levels of Market Segmentation<br />Segmenting Consumer Markets<br />Evaluating and Select...
Why identify?<br />Companies cannot connect with all customers in large, broad, or divers markets.<br />Mass marketing is ...
The market can be segmented into 4 levels:<br />Segment Marketing<br />Niche Marketing<br />Local Marketing<br />Individua...
customers with similar set of needs and wants : Segment Marketing<br />Concept 1<br />Marketer must identify the markets a...
defined customer group looking for a distinct mix of benefits: Niche Marketing<br />Concept 2<br />Has a distinct set of n...
Tailoring to needs and wants of local groups: Local marketing<br />Concept 3<br />Emphasis on local marketing initiatives<...
Empowers customers to design the product and service: Customerization<br />Concept 4<br />Firm provides a platform and too...
Segmenting Consumer Markets<br />Geographic<br />Region, City or Metro<br />Size, Density, Climate<br />Demographic<br />A...
Dividing market into geographical units: Geographic Segmentation<br />Concept 5<br />Can be divided into nations, states, ...
Market divided into groups based on variables: Demographic Segmentation<br />Concept 6<br />Variables such as age, family ...
Divided based on Psychographic Profiles:Psychographic Segmentation<br />Concept 7<br />Market is divided into different gr...
Based on decision roles and behavioral variables: Behavioral Segmentation<br />Concept 8<br />Divide market into groups on...
Evaluating and Selecting Market Segments<br />Selective<br />specialization<br />M1   M2   M3 <br />P1<br />P2<br />P3<br ...
Selecting a number of market segments:Selective Specialization<br />Concept 9<br />There may be little or no synergy among...
Serve all customer groups:Full Market Coverage<br />Concept 10<br />Firm attempts to serve all customer groups with all th...
Outline:<br />Why identify?<br />Levels of Market Segmentation<br />Segmenting Consumer Markets<br />Evaluating and Select...
Identifying Market Segments and Targets<br />Carisse Diana A. Drilon<br />ASMPH MD-MBA<br />May 11, 2010<br />
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Identifying Market Segments and Target

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Based on Marketing Management by Philip Kotler, Chapter 8

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Identifying Market Segments and Target

  1. 1. Identifying Market Segments and Targets<br />Carisse Diana A. Drilon<br />ASMPH MD-MBA<br />May 11, 2010<br />
  2. 2. Outline:<br />Why identify?<br />Levels of Market Segmentation<br />Segmenting Consumer Markets<br />Evaluating and Selecting Market Segments<br />
  3. 3. Why identify?<br />Companies cannot connect with all customers in large, broad, or divers markets.<br />Mass marketing is no longer that effective <br />Splintering of market<br />advertising media<br />distribution channels.<br />
  4. 4. The market can be segmented into 4 levels:<br />Segment Marketing<br />Niche Marketing<br />Local Marketing<br />Individual Marketing: Customerization<br />
  5. 5. customers with similar set of needs and wants : Segment Marketing<br />Concept 1<br />Marketer must identify the markets and decide which one to target<br />Kotler example: <br />Siemens Electrical Apparatus Division<br />Local Example: <br /> Cebu Pacific Airlines<br />Medical Application: <br /> The Medical City Breast Clinic<br />
  6. 6. defined customer group looking for a distinct mix of benefits: Niche Marketing<br />Concept 2<br />Has a distinct set of needs, willing to pay a premium, fairly small, gains economies through specialization<br />Kotler example:<br /> Hallmark<br />Local example:<br /> VMV Hypoallergenics<br />Medical application:<br />Subspecializing in a certain field<br />
  7. 7. Tailoring to needs and wants of local groups: Local marketing<br />Concept 3<br />Emphasis on local marketing initiatives<br />Kotler example:<br /> Citibank<br />Local example:<br /> McDonald’s<br />Medical application:<br /> Private practice of doctors in different areas<br />
  8. 8. Empowers customers to design the product and service: Customerization<br />Concept 4<br />Firm provides a platform and tools and “rents” out to the customers the means to design the products.<br />Kotler example:<br />JackRabbit Custom Bikes<br />Local example:<br /> Specialty bakeshops making custom-designed cakes, etc.<br />Medical application:<br /> Patient care is individualized<br />
  9. 9. Segmenting Consumer Markets<br />Geographic<br />Region, City or Metro<br />Size, Density, Climate<br />Demographic<br />Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...<br />Psychographic<br />Lifestyle or Personality<br />Behavioral<br />Occasions, Benefits, Uses, or Attitudes<br />
  10. 10. Dividing market into geographical units: Geographic Segmentation<br />Concept 5<br />Can be divided into nations, states, regions, countries, cities, or neighborhoods<br />Kotler example:<br /> Bed Bath and Beyond<br />Local example:<br /> Jollibee<br />Medical application:<br /> Local health units<br />
  11. 11. Market divided into groups based on variables: Demographic Segmentation<br />Concept 6<br />Variables such as age, family size, family life cycle, gender, income, occupation, education, religion, etc.<br />Kotler example:<br /> Dove’s Campaign for Real Beauty<br />Local example:<br /> Pond’s Age Defying Serum<br />Medical application:<br /> Age-specific specialization (Pediatrics, Geriatrics, etc.)<br /> Gender specific specialization (OB-Gyn, Urology, etc.)<br />
  12. 12. Divided based on Psychographic Profiles:Psychographic Segmentation<br />Concept 7<br />Market is divided into different groups on the basis of psychological/personal traits, lifestyle, or values<br />Kotler example:<br /> Transport Canada<br />Local example:<br /> Philippine Airlines<br />Medical application:<br /> St. Luke’s Medical Center, Global City<br />
  13. 13. Based on decision roles and behavioral variables: Behavioral Segmentation<br />Concept 8<br />Divide market into groups on the basis of their knowledge of, attitude toward, use of, or response to a product<br />Kotler example:<br /> Cranberries<br />Local example:<br />Queso de Bola<br />Medical application:<br /> Flu shot<br />
  14. 14. Evaluating and Selecting Market Segments<br />Selective<br />specialization<br />M1 M2 M3 <br />P1<br />P2<br />P3<br />Full market<br />coverage<br />M1 M2 M3 <br />P1<br />P2<br />P3<br />
  15. 15. Selecting a number of market segments:Selective Specialization<br />Concept 9<br />There may be little or no synergy among the segments, but each promises to be a moneymaker<br />Kotler example:<br /> Proctor and Gamble Crest White Strips<br />Local example:<br /> Swish Mouthwash<br />Medical application:<br /> Dermatology Clinic<br />
  16. 16. Serve all customer groups:Full Market Coverage<br />Concept 10<br />Firm attempts to serve all customer groups with all the products they might need.<br />Kotler example:<br /> Coca-Cola<br />Local example:<br /> United Laboratories, Incorporated<br />Medical application<br /> Big hospitals (The Medical City, St. Luke’s Medical Center, Makati Medical Center)<br />
  17. 17. Outline:<br />Why identify?<br />Levels of Market Segmentation<br />Segmenting Consumer Markets<br />Evaluating and Selecting Market Segments<br />
  18. 18. Identifying Market Segments and Targets<br />Carisse Diana A. Drilon<br />ASMPH MD-MBA<br />May 11, 2010<br />

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