The document discusses market segmentation and targeting. It describes four levels of micro-marketing including segments, niches, local areas, and individuals. Market segmentation can be done geographically, demographically, psychographically, and behaviorally. Demographic segmentation includes factors like age, life cycle, gender, income, and social class. Behavioral segmentation looks at variables such as decision roles, benefits, usage rates, loyalty status, and attitudes. The document outlines the steps involved in effective segmentation including identifying needs-based segments, measuring segment attractiveness and profitability, and developing targeted marketing strategies.

1. Identifying
Market Segments
and Targets
Marketing Management

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Four levels of Micromarketing
Segments
Local areas Individuals
Niches

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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral

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Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class

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Behavioral Segmentation
Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User
Behavioral Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude

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The Brand Funnel Illustrates
Variations in the
Buyer-Readiness Stage
• Aware
• Ever tried
• Recent trial
• Occasional user
• Regular user
• Most often used

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Loyalty Status
Switchers
Shifting loyals
Split loyals
Hard-core

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Figure 8.3 Behavioral
Segmentation Breakdown

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The Conversion Model
Convertible Shallow Average Entrenched
Strongly
unavailable
Ambivalent Available
Weakly
unavailable
Users Nonusers

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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
Needs-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Marketing-Mix
Strategy

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Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable

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Figure 8.4 Patterns of
Target Market Selection

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Figure 8.4 Patterns of
Target Market Selection

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Figure 8.4 Patterns of
Target Market Selection

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Figure 8.5 Segment-by-Segment
Invasion Plan