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K13 segmentation and_targeting

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K13 segmentation and_targeting

  1. 1. 8 Identifying Market Segments and Targets Marketing ManagementA South Asian Perspective, 13th ed
  2. 2. Chapter Questions • What are the different levels of market segmentation? • How can a company divide a market into segments? • How should a company choose the most attractive target markets? • What are the requirements for effective segmentation?Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-2
  3. 3. Effective Targeting Requires… • Identify and profile distinct groups of buyers who differ in their needs and preferences • Select one or more market segments to enter • Establish and communicate the distinctive benefits of the market offeringCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-3
  4. 4. Ford’s Model T Followed a Mass Market ApproachCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-4
  5. 5. Four levels of Micromarketing Segments Niches Local areas IndividualsCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-5
  6. 6. What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs ad wants.Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-6
  7. 7. Gather.com: A Niche Social Networking SiteCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-7
  8. 8. Preference Segments • Homogeneous preferences exist when consumers want the same things • Diffused preferences exist when consumers want very different things • Clustered preferences reveal natural segments from groups with shared preferencesCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-8
  9. 9. The Himalaya DrugCompany serves a growing nichemarket by focusing on ayurvedic medicines andhealth supplementsCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-9
  10. 10. What is Customerization? Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-10
  11. 11. United Bank Ltd. of Pakistan offers customized Galleria credit cards to its customersCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-11
  12. 12. Segmenting Consumer Markets Geographic Demographic Psychographic BehavioralCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-12
  13. 13. Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social ClassCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-13
  14. 14. Bank Al Habib targets senior citizensCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-14
  15. 15. Dove Targets WomenCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-15
  16. 16. Behavioral Segmentation Decision Roles Behavioral Variables • Initiator • Occasions • Influencer • Benefits • Decider • User Status • Buyer • Usage Rate • User • Buyer-Readiness • Loyalty Status • AttitudeCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-16
  17. 17. The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage • Aware • Ever tried • Recent trial • Occasional user • Regular user • Most often usedCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-17
  18. 18. Loyalty Status Hard-core Split loyals Shifting loyals SwitchersCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-18
  19. 19. Figure 8.3 Behavioral Segmentation BreakdownCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-19
  20. 20. Segmenting for Business Markets Demographic Operating Variable Purchasing Approaches Situational Factors Personal CharacteristicsCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-20
  21. 21. Steps in Segmentation Process Needs-based segmentation Segment identification Marketing-Mix Segment attractiveness Strategy Segment profitability Segment positioning Segment acid testCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-21
  22. 22. Effective Segmentation Criteria Measurable Substantial Accessible Differentiable ActionableCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-22
  23. 23. Figure 8.4 Patterns of Target Market SelectionCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-23
  24. 24. Figure 8.4 Patterns of Target Market SelectionCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-24
  25. 25. Figure 8.4 Patterns of Target Market SelectionCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-25
  26. 26. The Revolution brand of ready- made women’s apparel successfully focuses on the niche segment of plus-size clothes.Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-26
  27. 27. Figure 8.5 Segment-by-Segment Invasion PlanCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-27
  28. 28. Pepsi used Megamarketing in IndiaCopyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-28

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