Segmentation & Target Marketing Soma GiriDisclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons
– Summarise the relationship between market segmentation, targeting and positioning– Identify and describe the major variables for consumer segmentation– Outline how companies select target markets and implement segmentation strategies– Show how market segmentation and the marketing mix are interlinked in the positioning strategy
• Segmentation Variables – Geographic – Demographic – Psychographic – Behavioral – Other (anything!)• No single best way to segment a market.• Often best to combine variables and identify smaller, better-defined target groups.
Demographic • Use Differences in: – age, gender, family size, family life cycle, income, occupation, education, race, and religion – Most frequently used segmentation variable • Ease of measurement and high availability – Usually the worst variable to use.Psychographic Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic classification often have very different lifestyles and personalities.
Behavioral• Occasion • Loyalty Status – Special promotions & labels for holidays. Nonusers, ex-users, potential users, first-time users, regular – Special products for special occasions. users• Benefits Sought • Usage Rate – Different segments desire different Light, medium, heavy. benefits from the same products Loyalty Status H Split loyals Shifting loyals Switchers
User & Loyalty Status Target Market Unaware Aware Not Tried TriedNegative Favorable Not yet Neutral Rejector Repeated Option option repeated Loyal to Loyal to Switcher other brand brand Regular Light User Heavy User User
Effective Segmentation Measurable • Size, purchasing power, profiles of segments can be measured Accessible • Segments can be effectively reached and served Substantial • Segments are large or profitable enough to serve Differentiable • Segments must respond differently to different marketing mix elements & programs Actionable • Effective programs can be designed to attract and serve the segments
Targeting SegmentsUndifferentiated Differentiated Concentrated MicromarketingMarketing Marketing Marketing • Mass • Segmented • Niche • Local or Marketing Marketing individual MarketingTarget Narrowly Target Broadly
Targeting Market Selection Product x Market Matrices