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t.com
IDENTIFYING
MARKET SEGMENTS
AND TARGETS
Leilani Estebat
September 16, 2013

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1. Segmenting Consumer Markets(What)
2. Reasons to segment (Why)
3. Steps and Criteria (How)
4. Summary
Outline:

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Segmenting Consumer Markets
GDP-b-S
1. Geographic
2. Demographic
3. Psychographic
4. Behavioral Segmentation
1. Market Segmentation

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1. Countries
2. States
3. Regions
4. City
5. Neighborhoods
1. Segmenting Consumer Markets:
Geographic

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1. Age & Life-Cycle Stage
1. Segmenting Consumer Markets:
Demographic

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1. Age & Life-Cycle Stage
2. Life Stage
1. Segmenting Consumer Markets:
Demographic

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1. Age & Life-Cycle Stage
2. Life Stage
3. Gender
1. Segmenting Consumer Markets:
Demographic

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1. Age & Life-Cycle Stage
2. Life Stage
3. Gender
4. Income
1. Segmenting Consumer Markets:
Demographic

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1. Age & Life-Cycle Stage
2. Life Stage
3. Gender
4. Income
5. Generation
1. Segmenting Consumer Markets:
Demographic

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1. Age & Life-Cycle Stage
2. Life Stage
3. Gender
4. Income
5. Generation
6. Race & Culture
1. Segmenting Consumer Markets:
Demographic

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The VALS Segmentation System
1. Segmenting Consumer Markets:
Psychographic

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A. Decision Roles
1. Initiator
2. Influencer
3. Decider
4. Buyer
5. User
1. Segmenting Consumer Markets:
Behavioral

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B. Behavioral Variables
1. Occasions
2. Benefits
3. User Status
4. Usage Rate
5. Buyer Readiness Stage
6. Loyalty Status
7. Attitude
1. Segmenting Consumer Markets:
Behavioral

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Buyer - Readiness Stage
• Aware
• Ever tried
• Recent trial
• Occasional user
• Regular user
• Most often used
1. Segmenting Consumer Markets:
Behavioral

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Loyalty Status
1. Segmenting Consumer Markets:
Behavioral
Hard Core
Split loyals
Shifting loyals
Switchers

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1. Segmenting Consumer Markets:
Behavioral
Target
Market
Unaware Aware
Not tried
Negative
opinion
Neutral
Favorable
Opinion
Tried
Rejector
Not Yet
Repeated
Repeated
Loyal to
other Brand
Switcher
Loyal to
Brand
Light user
Regular
User
Heavy User

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2. Reasons to Segment
Better satisfy customer needs and wants
Growth or Innovation
Increased market share
Higher profits

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A. Steps in Segmentation Process
3. Steps and Criteria
Needs-Based
Segmentation
Segment
Identification
Segment
Attractiveness
Segment
Profitability
Segment
Positioning
Segment Acid
Test
Marketing - Mix Strategy

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B. Effective Segmentation Criteria
3. Steps and Criteria
• Measurable
• Substantial
• Accessible
[Text]
• Differentiable
[Text]
• Actionable

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1. What? Market segments and targets
2. Why? Growth and profitability
3. How?
a. Proper segmentation process
b. Effective segmentation criteria
4. Summary
Identify…

21. www.leilaniestebat.blogspo
t.com
IDENTIFYING
MARKET SEGMENTS
AND TARGETS
Leilani Estebat
September 16, 2013