The document discusses market segmentation and strategic targeting. It explains that segmentation is necessary because consumer needs differ and it helps companies identify distinct groups to target. The key bases for segmenting consumers include demographics, geodemographics, psychographics, sociocultural factors, usage patterns, brand loyalty, and consumption benefits sought. Effective targeting requires segments be identifiable, sizable, stable, and accessible. Firms can implement strategies like concentrated marketing, differentiated marketing, counter segmentation, and micro-targeting to reach different segments.

1. Market Segmentation and
Strategic Targeting
1

2. Previous Topic’s Review
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3. Today’s Learning Objectives
To Understand:
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1 Why Market Segmentation Is Essential
The Criteria for Targeting Selected Segments
Effectively
2
Bases for Segmenting Consumers
3
How Segmentation and Strategic Targeting Are
Carried Out
4

4. A Model of Consumer Decision Making
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Firm’s Marketing Efforts
4P
Social Environment
Family, Group,
Culture, Social Class
Motivation, Perception, Learning, Personality, Attitudes
Purchase and Post-Purchase Evaluation
OUTPUT
PROCESS
INPUT

5. Why Segmentation is Necessary
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Consumer
Research
Segmenting Targeting Positioning
• Consumer needs differs
• Differentiation helps
products compete
• Segmentation helps identify
media

6. Why Segmentation is Necessary cont’d
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Consumer
Research
Segmenting Targeting Positioning
Criteria for Effective Targeting:
Identifiable Sizeable Stable
Accessible
Congruent with the
company’s objectives and
resources
Positioning:
The value proposition,
expressed through
promotion, stating the
product’s or service’s
capacity to deliver specific
benefits.

7. What Kind of
Consumer Does This Ad Target?
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8. Bases for Segmentation
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9. Class Discussion
• Considering GP:
– How might consumers’ needs differ?
– What types of products might meet their needs?
– What advertising media makes sense for the
different segments of consumers?
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10. Demographics
Geodemographic
• Age
• Gender
• Marital Status
• Family Life-cycle
• Income, Education, and Occupation
Consumer-Rooted Segmentation Bases
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• Based on geography and
demographics
• People who live close to one
another are similar

11. Consumer-Rooted Segmentation Bases cont’d
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Personality Traits
Lifestyles
Sociocultural
• People often do not identify these traits
because they are guarded or not
consciously recognized
• Psychographics
• Includes activities, interests, and opinions
• They explain buyer’s purchase decisions
and choices
• Sociological = group, Anthropological = cultural
• Include segments based on
– Cultural values
– Sub-cultural membership
– Cross-cultural affiliations

12. Class Discussion/sample questions
• According to the article:
– Based on demographic/ geodemographic
segmentation, how many segments are there in
the market?
– What are the characteristics and lifestyle traits of
each segment?
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13. Consumption-Specific Segmentation Bases
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Usage rate
Usage
situation
Benefit
segmentation
• Awareness status
• Level of involvement
• Segmenting on the basis of special
occasions or situations
• Example : When I’m away on business, I try
to stay at a suites hotel.
• Benefits sought represent consumer needs
• Important for positioning
• Benefits of media

14. Consumption-Specific Segmentation Bases cont’d
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Perceived
brand
loyalty
Brand
relationship
• Brand loyalty includes:
– Behavior
– Attitude
• Frequency award programs are popular
• Customer relationships can be active or passive
• Retail customers seek:
– Personal connections vs. functional features
• Banking customers seek:
– Special treatment
– Confidence benefits
– Social benefits

15. Class Discussion
• Which Consumption-Related Segmentation Is
Featured in This Ad?
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16. Class Discussion cont’d
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17. Implementing Segmentation Strategies
• Concentrated Marketing
– One segment
• Differentiated
– Several segments with individual marketing mixes
• Counter segmentation
• Micro-targeted
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18. Summary
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Consumer-rooted Consumption-specific
Concentrated
Marketing
Differentiation
Counter
Segmentation