Market segmentation


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DLSL- SY: 2012-2013
Group 3: A2D PrinMar
Balakit, Art Jayvee
Bartolome, Maria Roscila Ann
Dimaculangan, Shella
Dolor, Grace Ann
Inciong, Mikee
Mistas, Kim Angelo
Olan, Elona Mathel
Pesigan, Jan Phillip
Reyes, Dexi
Torres, Jenielyn

Published in: Business
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Market segmentation

  1. 1. What is Market Segmentation? Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications for the relevant goods and services.
  2. 2. Segmentation Strategies A market segment should be… measurable accessible by communication and distribution channels different in its response to a marketing mix durable (not changing too quickly) substantial enough to be profitable
  3. 3. Why use segmentation? For companies to better understand the needs of a specific customer base Identify other applications for their products that may not have been obvious before To improve the overall efficiency of the company's marketing efforts
  4. 4. egmentation argeting ositioning T P S
  5. 5. Consumer Market Segmentation
  6. 6. Segmentation Variables Demographic Segmentation Geographic Segmentation Pyschographics Segmentation Behavioural segmentation Consumer Market Segmentation
  7. 7. Demographic Segmentation  originates from the word ‘demography’ which means a ‘study of population’  can be divided into age, gender, income, and family lifecycle amongst other variables Consumer Market Segmentation
  8. 8. Geographic Segmentation  Geographical segmentation divides markets into different geographical areas. Marketers use geographic segmentation because consumers in different areas may display certain characteristics and behaviours in that particular region. An area can be divided by the town, the region or the country. Consumer Market Segmentation
  9. 9. Psychographics Segmentation can be broken down into lifestyle, social class, and personality characteristics. Lifestyles segmentation Personality Characteristics Social Class Segmentation Consumer Market Segmentation
  10. 10. Behavioural Segmentation  Refers to why people purchase a product or service Consumer Market Segmentation
  11. 11. Business Market Segmentation
  12. 12. based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors. Business Market Segmentation Geographic segmentation based on factors such as the size of the organization, its industry, position in the value chain, etc. Customer Type Buyer Behavior based on factors such as loyalty to suppliers, usage patterns, and order size.
  13. 13. Targeting various marketing strategies and promotional schemes according to the tastes of the individuals of particular segment. Once market segments are created, organization then targets them.
  14. 14. Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt  Option 1 Undifferentiated marketing - Sometimes referred to as mass marketing the firm may decide to aim its resources at the entire market with one particular product.
  15. 15.  Option 2 Differentiated marketing strategy - Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups. Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt
  16. 16.  Option 3 Concentrated Marketing: Where the organisation concentrates its marketing effort on one particular segment. The firm will develop a product that caters for the needs of that particular group. Kinds of Targeting/ 3 Targeting Options an Organization Can Adopt
  17. 17. Definition & Goal how organizations want their consumers to see their product about how you want consumers to perceive your products and services and what strategies you would adopt to reach this perceptual goal
  18. 18. To influence how the product is perceived by consumers A product's position is how potential buyers see the product A platform for the brand: It facilitates the brand to get through to the mind of the target consumer
  19. 19. Developing a Positioning Strategy depends much on how competitors position themselves: ‘a me too’ strategy - position themselves close to their competitors so consumers can make a direct comparison when they purchase ‘away from their competitors’ strategy
  20. 20. 3 Types of Concepts Functional positions - Solve problems. - Provide benefits to customers. - Get favorable perception by investors (stock profile) and lenders.
  21. 21. Symbolic positions - Self-image enhancement. - Ego identification. - Belongingness and social meaningfulness. - Affective fulfillment. Experiential positions - Provide sensory stimulation. - Provide cognitive stimulation.
  22. 22. CRITERIA’S FOR SUCCESSFUL POSITIONING a. Clarity: While positioning its brand the firm must be able to position itself in both distinct value, proposition, and to its target audience. b. Consistency: Consistency in positioning means keeping the positioning plank/bases intact for longtime. But it does not mean that the firm must change its positioning bases even though its survival is at stake. The firm must be flexible to the changing environment.
  23. 23. c. Credibility: The firm must deliver trustworthy and believable value proposition. There should be perfect match between promise and action. d. Competitiveness: For surviving in this competitive and changing environment innovative resources, talent pool, competitive advantage, strong financial backup etc are very important.
  24. 24. SUMMARY