Geographic Segmentation Dividing the market into different geographical unit such as nations, regions, states, countries,cities or even neighborhood
lSegmentation McDonald in Middle East offers any kind of meal that is chicken or beef
lSegmentation McDonald in New Zealand, offers KiwiBurger. Kiwi is a local basic food to its country.
lSegmentation Main idea to serve coke is when it is cold so Coca-cola focuses on hot areas of the world. .
Demographic SegmentationDivides the market into groupsbased on variables such as age,gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.
icoke has small returnable glasses price ranges from P7-12. For middle people, it has non-returnable bottle. For high income peo Segmentati on Income Segmentation:
PSYCHOGRAPHICSEGMENTATION Dividing the market intodifferent groups based on social class, lifestyle orpersonality characteristics.
PSYCHOGRAPHIC SEGMENTTION •Social Class •Lifestyle •Personality
SocialClassDifferent consumers fall in different social classes. This depends mainly on their buying power.The buying power is affected by the background of the customer, his income as well ashis spending habits.
LifestyleEVERYONE HAS DIFFERENTCLOTHING HABITS BASEDON THEIR LIFESTYLES. THE CUSTOMER MIGHT BESCHOOL GOING, COLLEGEGOING, OFFICE GOING OR OTHER.
Personality Personality in psychographic segmentation is dependent on both – lifestyle as well as social class. A person will have a rich personality only if he has high buying power as well as the taste in clothes to maintain such a lifestyle.(
BEHAVIORAL SEGMENTATION•Dividing a market into groupsbased on consumer knowledge, attitude, use or response to a product.
BEHAVIORALSEGMENTATION•Occasion Segmentation •Benefits Sought •User Status •Usage Rate •Loyalty Status
OccasionSegmentation Dividing a market into groups according to occasions where buyers get the idea to buy, actually make their purchase or use the purchased item.
BenefitSegmentation Dividing the market into groups according to the different benefits that the consumers seek from the product. Requires finding the major benefits people look for in the product class, the kindsof people who look for each benefits and the major brands that deliver each benefit
User Usage Status Rate • Markets can be • Markets can also segmented into be segmented into groups of nonusers, light, medium and ex-users, potential heavy productusers, first time usersand regular users of a users product.
Loyalty StatusConsumers can be loyal to brands, store and companies.
Using Multiple Segmentation BasesExample of mulitvariablesegmentation isGeodemographicsSegmentation.
Leading lifestyle segmentation systems is the PRIZM
Marketers can use MyBestSegments to guidemarketing campaigns and media strategiesfor specific market segments by answering: Who are the potential customers? What are they like? Where can I find them? How can I reach them?
Examples of PRIZMSegmentation Systems: •“Blue blood estates” – suburban areas populated by elite, super-rich families. •“shotguns & pickups” - populated by rural blue-collar workers & families. •“hispanic mix” – cluster are highly brand conscious, quality conscious and brand loyal. •“money & brains” – they buy a lot of books.
Segmenting Business MarketsOperating CharacteristicsPurchasing Approaches Situational Factors Personal Characteristics
Segmenting InternationalMarkets Geographic Location Economic Factors Political and Legal Factors Cultural Factors
Intermarketsegmentation- Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
Requirements for Effective Segmentation Measurable Accessible SubstantialDifferentiable Actionable
Evaluating Market SegmentsSegment Size and Growth Analyze current segment sales, growth rates, and expected profitability.Segment Structural Attractiveness Consider effects of: competitors, existence of substitute products, and the power of buyers & suppliers.Company Objectives and Resources Examine company skills & resources needed to succeed in that segment. Offer superior value and gain advantages over competitors.
Selecting Target Market Segments Target Market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
Undifferentiated (mass) Marketing Firm decides to ignore market segment differences and target the whole market with one offer. Focus is on common (not different) needs of the consumers.
Differentiated (segmented)Marketing Firm targets several market segments and designs separate offers for each. •The goal is to have higher sales and a stronger position with each market
Concentrated (niche)Marketing Firm goes after a large share of one or a few segments or niches.
Micromarketing Practice of tailoring products &marketing programs to the needs and wants of specific individuals and locations. Tailoring brands Local Marketing: and promotions to the needs and wants of local customer groups—cities, neighborhoods, specific stores. Individual Marketing: Tailoring products and marketing programs to the needs and preferences of individual customers.
Choosing a Target Marketing Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies
Socially Responsible Target MarketingSmart targeting helps both companiesand consumers.Target marketing sometimes generatescontroversy and concern. •Vulnerable and disadvantaged can be targeted. •Cereal, cigarette, beer, and fast-food marketers have received criticism. •Internet has raised fresh concerns about potential targeting abuses.
Product Position Is the way the product s defined by consumers on important attributes – the place the product occupies in consumers’ minds relative to competing products.
Positioning MapPositioning maps for Large luxury SUVs
Choosing a Positioning Strategy #1 Identify a set of possible #2 Choose the rightcompetitive advantages on competitive advantages which to build a position #3 Select an overall positioning strategy