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Kotlermm13 chapter 08
1.
Identifying Market Segments and Targets Marketing
Management, 13th ed 8
2.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 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?
3.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Baby Boomers: A Lucrative Market
4.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 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
5.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Ford’s Model T Followed a Mass Market Approach
6.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Four levels of Micromarketing Segments Local areas Individuals Niches
7.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs ad wants.
8.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Gather.com: A Niche Social Networking Site
9.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Flexible Marketing Offerings • Naked solution: Product and service elements that all segment members value • Discretionary options: Some segment members value options but not all
10.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 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 preferences
11.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Niche Marketers Enterprise Rent-A-Car targets the insurance- replacement market
12.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Baskin Robbins Focuses on Local Marketing
13.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall The Long Tail • Chris Anderson explains the long tail equation: • The lower the cost of distribution, the more you can economically offer without having to predict demand; • The more you can offer, the greater the chance that you will be able to tap latent demand for minority tastes; and • Aggregate enough minority taste, and you may find a new market.
14.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall 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.
15.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Segmenting Consumer Markets GeographicGeographic DemographicDemographic PsychographicPsychographic BehavioralBehavioral
16.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Claritas’ Prizm • Education and affluence • Family life cycle • Urbanization • Race and ethnicity • Mobility
17.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Demographic Segmentation Age and Life CycleAge and Life Cycle Life StageLife Stage GenderGender IncomeIncome GenerationGeneration Social ClassSocial Class
18.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Toyota Scion Targets Gen Y Consumers
19.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Dove Targets Women
20.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Figure 8.1 The VALS Segmentation System
21.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Behavioral Segmentation Decision Roles • Initiator • Influencer • Decider • Buyer • User Behavioral Variables • Occasions • Benefits • User Status • Usage Rate • Buyer-Readiness • Loyalty Status • Attitude
22.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage • Aware • Ever tried • Recent trial • Occasional user • Regular user • Most often used
23.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Loyalty Status Switchers Shifting loyals Split loyals Hard-core
24.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Figure 8.3 Behavioral Segmentation Breakdown
25.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall The Conversion Model Convertible Shallow Average Entrenched Strongly unavailable Ambivalent Available Weakly unavailable Users Nonusers
26.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Segmenting for Business Markets DemographicDemographic Operating VariableOperating Variable Purchasing ApproachesPurchasing Approaches Situational FactorsSituational Factors Personal Characteristics Personal Characteristics
27.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Steps in Segmentation Process Needs-based segmentation Segment identification Segment attractiveness Segment profitability Segment positioning Segment acid test Marketing-Mix Strategy
28.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Effective Segmentation Criteria MeasurableMeasurable SubstantialSubstantial AccessibleAccessible DifferentiableDifferentiable ActionableActionable
29.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Figure 8.4 Patterns of Target Market Selection
30.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Figure 8.4 Patterns of Target Market Selection
31.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Figure 8.4 Patterns of Target Market Selection
32.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Crest Whitestrips Follows a Multisegment Strategy
33.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Figure 8.5 Segment-by-Segment Invasion Plan
34.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Pepsi used Megamarketing in India
35.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Marketing Debate Is mass marketing dead? Take a position: 1. Mass marketing is dead. or 2. Mass marketing is still a viable way to build a profitable brand.
36.
Copyright © 2009
Pearson Education, Inc. Publishing as Prentice Hall Marketing Discussion Think of various product categories. How would you classify yourself in terms of the various segmentation schemes? How would marketing be more or less effective for you depending upon the segment involved?
Editor's Notes
Video icon links to Marriott snippet on offering different brands for specific segments.
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