This document discusses market segmentation and targeting. It outlines the key concepts, including that markets can be divided into segments based on consumer characteristics and responses. The segmentation process involves identifying segments, evaluating attractiveness and profitability, and positioning. Companies must choose the most attractive target markets, which could be a single segment, selective specialization, or full market coverage. Effective segmentation requires monitoring segments and considering additional factors.
Identifying Market Segments and Targets
Effective Targeting Requires
Four levels of Micromarketing
What is a Market Segment?
Flexible Marketing Offerings
Preference Segments
Segmenting Consumer Markets
Behavioral Segmentation
The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage
Loyalty Status
Segmenting for Business Markets
Steps in Segmentation Process
Effective Segmentation Criteria
Market segmentation
What Is Market Segmentation?
Bases for Segmentation
Geographic
Demographic
Psychological
Psychographic
Sociocultural
Criteria for Effective Targeting of Segments
Implementing Segmentation Strategies
Family Life Cycle Advertising
Use-Related Segmentation
Criteria for Effective Targeting of Market Segments
Implementing Segmentation Strategies
Targeting
Psychographic Segmentation
Identifying Market Segments and Targets
Effective Targeting Requires
Four levels of Micromarketing
What is a Market Segment?
Flexible Marketing Offerings
Preference Segments
Segmenting Consumer Markets
Behavioral Segmentation
The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage
Loyalty Status
Segmenting for Business Markets
Steps in Segmentation Process
Effective Segmentation Criteria
Market segmentation
What Is Market Segmentation?
Bases for Segmentation
Geographic
Demographic
Psychological
Psychographic
Sociocultural
Criteria for Effective Targeting of Segments
Implementing Segmentation Strategies
Family Life Cycle Advertising
Use-Related Segmentation
Criteria for Effective Targeting of Market Segments
Implementing Segmentation Strategies
Targeting
Psychographic Segmentation
Market Segmentation consist of taking the total
heterogeneous market for a product & dividing it
into several sub-market or segments, each of which
tends to be homogeneous in full significant
aspects.”
Market Segmentation consist of taking the total
heterogeneous market for a product & dividing it
into several sub-market or segments, each of which
tends to be homogeneous in full significant
aspects.”
Slides by Lecturer Ken Ho for Cohort 5 from Roehampton University MBA at Aventis School of Management - just for sharing & comparison with Cohorts 6 & 7 taught by Lecturer Param.
Report on Strategic Marketing Chapter Review [Elegant (VI)]Md. Abdur Rakib
The report is made on the chapter reviews from the strategic marketing book 9th Edition by David W. Cravens & Nigel F. Piercy. 12 chapters are taken for making reviews for the report.
It is prep[ared by Elegant (VI) group, Section: A, Marketing 14th batch, Faculty of Business Studies, University of Dhaka.
Similar to Chapter 8: Market Segments and Targets (20)
18. IDENTIFYING MARKET SEGMENTS and TARGETS Elaine R. Buday Ateneo Graduate School of Business 01 December 2009 Top 10 Concepts
Editor's Notes
1. What are the different levels of market segmentation? 2. How can a company divide a market into segments? 3. How should a company choose the most attractive target markets? 4. What are the requirements for effective segmentation?
1. Target marketing includes three activities: (a) market segmentation, (b) market targeting, and (c) market positioning. 2. The starting point for discussing segmentation is mass marketing – seller engages in the mass productions, mass distribution, and mass promotion of one product for all buyers. 3. We can target markets at four levels: (a) segments, (b) niches, (c) local areas, and (d) individuals. This is micromarketing at one of four levels 4. There are two bases for segmenting consumer markets: (a) consumer characteristics and (b) consumer responses. The major segmentation variables for consumer markets are (a) geographic, (b) demographic, (c) psychographic, and (d) behavioural. Marketers use them singly or in combination. The key is adjusting the marketing program to recognize customer differences. 5. Business marketers use all these variables (demographic and personal characteristics) along with operating variables, purchasing approaches, and situational factors as their bases for segmenting business markets
6. Roger Best proposed the seven step approach in the segmentation process, also known as the “needs-based market segmentation approach”: (a) Needs-Based Segmentation, (b) Segment Identification, (c) Segment Attractiveness, (d) Segment Profitability, (e) Segment Positioning, (f) Segment “Acid Test”, and (g) Marketing-Mix Strategy 7. To be useful, market segments must be (a) measurable, (b) substantial, (c) accessible, (d) differentiable, and (e) actionable. 8. A firm must evaluate the various segments and decide how many and which ones to target: (a) a single segment or single-segment concentration, (b) several segments or selective specialization, (c) a specific product or product specialization, (d) a specific market or market specialization, and (e) the full market or full market coverage. If it serves the full market, it must choose between differentiated and undifferentiated marketing. 9. Firms must also monitor segment relationships and seek economies of scope and the potential for marketing to super segments. Companies should be cautious about over segmenting their markets. If this happens, they may want to turn to counter segmentation to broaden the customer base 10. Marketers must develop segment-by-segment invasion plans and choose target markets in a socially responsible manner at all times (ethical choice of market targets)
Target marketing includes three activities: (a) market segmentation, (b) market targeting, and (c) market positioning.
The starting point for discussing segmentation is mass marketing – seller engages in the mass productions, mass distribution, and mass promotion of one product for all buyers.
We can target markets at four levels: (a) segments, (b) niches, (c) local areas, and (d) individuals. This is micromarketing at one of four levels Market segments are large, identifiable groups within a market; Market segment consists of a group of customers who share a similar set of needs and wants. A niche is a more narrowly defined customer group seeking a distinctive mix of benefits. Globalization and the Internet have made niche marketing more feasible to many. Local marketing – target marketing is leading to marketing programs tailored to the needs and wants of local customer groups in trading areas, neighbourhoods, even individual stores. Marketers appeal to local markets through grassroots marketing for trading areas, neighbourhoods, and even individual stores. Individual Marketing – the ultimate level of segmentation leads to “segments to one”, “customized marketing”, or “one-to-one marketing”. Today customers are taking more individual initiative in determining what and how to buy.
There are two bases for segmenting consumer markets: (a) consumer characteristics and (b) consumer responses. The major segmentation variables for consumer markets are (a) geographic, (b) demographic, (c) psychographic, and (d) behavioural. Marketers use them singly or in combination. The key is adjusting the marketing program to recognize customer differences.
The major segmentation variables for consumer markets are (a) geographic, (b) demographic, (c) psychographic, and (d) behavioural. Marketers use them singly or in combination. The key is adjusting the marketing program to recognize customer differences. Business marketers use all these variables (demographic and personal characteristics) along with operating variables, purchasing approaches, and situational factors as their bases for segmenting business markets.
6. Roger Best proposed the seven step approach in the segmentation process, also known as the “needs-based market segmentation approach”: (a) Needs-Based Segmentation – Group customers into segments based on similar needs and benefits sought by customer in solving a particular consumption problem (b) Segment Identification – for each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the segment distinct & identifiable (actionable) (c) Segment Attractiveness – using predetermined segment attractiveness (such as market growth, competitive intensity, and market access), determine the overall attractiveness of each segment. (d) Segment Profitability – determine segment profitability (e) Segment Positioning – for each segment, create a “value proposition” and product-price positioning strategy based on that segment’s unique customer needs and characteristics (f) Segment “Acid Test” – create “segment storyboard” to test the attractiveness of each segment’s positioning strategy (g) Marketing-Mix Strategy – expand segment positioning strategy to include all aspects of the marketing mix: product, price, promotion, and place
To be useful, market segments must be (a) measurable, (b) substantial, (c) accessible, (d) differentiable, and (e) actionable
A firm must evaluate the various segments and decide how many and which ones to target: (a) a single segment or single-segment concentration, (b) several segments or selective specialization, (c) a specific product or product specialization, (d) a specific market or market specialization, and (e) the full market or full market coverage. If it serves the full market, it must choose between differentiated and undifferentiated marketing.
Firms must also monitor segment relationships and seek economies of scope and the potential for marketing to super segments. Companies should be cautious about over segmenting their markets. If this happens, they may want to turn to counter segmentation to broaden the customer base
Marketers must develop segment-by-segment invasion plans and choose target markets in a socially responsible manner at all times (ethical choice of market targets)
1. Target marketing includes three activities: (a) market segmentation, (b) market targeting, and (c) market positioning. 2. The starting point for discussing segmentation is mass marketing – seller engages in the mass productions, mass distribution, and mass promotion of one product for all buyers. 3. We can target markets at four levels: (a) segments, (b) niches, (c) local areas, and (d) individuals. This is micromarketing at one of four levels 4. There are two bases for segmenting consumer markets: (a) consumer characteristics and (b) consumer responses. The major segmentation variables for consumer markets are (a) geographic, (b) demographic, (c) psychographic, and (d) behavioural. Marketers use them singly or in combination. The key is adjusting the marketing program to recognize customer differences. 5. Business marketers use all these variables (demographic and personal characteristics) along with operating variables, purchasing approaches, and situational factors as their bases for segmenting business markets
6. Roger Best proposed the seven step approach in the segmentation process, also known as the “needs-based market segmentation approach”: (a) Needs-Based Segmentation, (b) Segment Identification, (c) Segment Attractiveness, (d) Segment Profitability, (e) Segment Positioning, (f) Segment “Acid Test”, and (g) Marketing-Mix Strategy 7. To be useful, market segments must be (a) measurable, (b) substantial, (c) accessible, (d) differentiable, and (e) actionable. 8. A firm must evaluate the various segments and decide how many and which ones to target: (a) a single segment or single-segment concentration, (b) several segments or selective specialization, (c) a specific product or product specialization, (d) a specific market or market specialization, and (e) the full market or full market coverage. If it serves the full market, it must choose between differentiated and undifferentiated marketing. 9. Firms must also monitor segment relationships and seek economies of scope and the potential for marketing to super segments. Companies should be cautious about over segmenting their markets. If this happens, they may want to turn to counter segmentation to broaden the customer base 10. Marketers must develop segment-by-segment invasion plans and choose target markets in a socially responsible manner at all times (ethical choice of market targets)
Target marketing includes three activities: (a) market segmentation, (b) market targeting, and (c) market positioning.