MGT_209_001_16W

1. Framework for Marketing Management
7
Identifying Market
Segments and Targets
1

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Chapter Questions
 In what ways can a company divide a
consumer or business market into segments?
 How should a company choose the most
attractive target markets?
 What are the different levels of market
segmentation?

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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 offering

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What is a Market Segment?
A market segment consists of a group
of customers who share a similar set of
needs and wants.

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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral

6. Geographic Segmentation
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Demographic Segmentation
 Age and life cycle
 Life stage
 Gender
 Income
 Generation
 Social class
 Race and Culture

8. Age and Lifecycle Stage
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9. Gender and Income
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10. Generational Influences
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11. Race and Culture
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12. Psychographic Segmentation
and The VALS Framework
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13. Behavioral Segmentation Based
on Needs and Benefits
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Behavioral Segmentation:
Decision Roles
Initiator
Influencer
Decider
Buyer
User

15. Behavioral Segmentation:
Behavioral Variables
 Occasions
 Benefits
 User Status
 Usage Rate
 Buyer-Readiness
 Loyalty Status
 Attitude
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16. Figure 7.2 Example of a Brand Funnel
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Segmenting for Business Markets
 Demographic
 Operating variable
 Purchasing approaches
 Situational factors
 Personal characteristics

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Steps in Segmentation Process
 Need-based segmentation
 Segment identification
 Segment attractiveness
 Segment profitability
 Segment positioning
 Segment acid test
 Market mix strategy

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Effective Segmentation Criteria
 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable

20. Porter’s 5 Forces Model
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Threat of Rivalry
Threat of Supplier
Bargaining Power
Threat of Buyer
Bargaining Power
Threat of
New Entrants
Threat of
Substitutes

21. Figure 7.3 Possible Levels
of Segmentation
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22. For Review
 In what ways can a company divide a
consumer or business market into segments?
 How should a company choose the most
attractive target markets?
 What are the different levels of market
segmentation?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-22