1. ATENEO GRADUATE SCHOOL OF BUSINESS
SSSMMDP5
Chapter 8 Kotler:
IDENTIFYING MARKET
SEGMENTS AND TARGETS
Elpidio S. de Chavez
February 2014

2. Outline
ATENEO GRADUATE
SCHOOL OF BUSINESS
SSSMMDP5
1. What are the Different Levels of Market
Segmentation
2. In what ways can a Company Divide a Market into
Segments
3. What are the Requirements for Effective
Segmentation?
4. How Should Market be Segmented?
5. How Should a Company Choose the Most
Attractive Market?

3. ATENEO GRADUATE
SCHOOL OF BUSINESS
Levels of Market
Segmentation
• Geographic Segmentation
• Demographic Segmentation
• Behavioral Segmentation
SSSMMDP5

4. BASES FOR SEGMENTING
ATENEO GRADUATE BUSINESS MARKETS
SCHOOL OF BUSINESS
•
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Demographic
Operating Variables
Purchasing Approaches
Situational Factors
Personal Characteristics
SSSMMDP5

5. REQUIREMENTS IN
ATENEO GRADUATE
SEGMENTATION PROCESS
SCHOOL OF BUSINESS
•
•
•
•
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Needs Based Segmentation
Segment Identification
Segment Attractiveness
Segment Profitability
Segment Positioning
Segment Acid Test
Marketing Mix Strategy
SSSMMDP5

6. ATENEO GRADUATE
SCHOOL OF BUSINESS
How Should Market
be Segmented
• By creating brand equity
• By making another targets
• By creating market insights
SSSMMDP5

7. How Should a Company
Choose the Most Attractive
ATENEO GRADUATE
Market
SCHOOL OF BUSINESS
SSSMMDP5
• Ethical Choice of Market
Targets Marketers must target carefully to avoid
consumer backlash.
 Market targeting also generate public controversy
when marketers take unfair advantage of vulnerable
groups