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Segmentation & target marketing
1. Segmentation & Target
Marketing
Soma Giri
Disclaimer: - Some of the images and content have been taken from different online sources and this presentation
is intended only for knowledge sharing but not for any profitable reasons
2. – Summarise the relationship between market segmentation, targeting and
positioning
– Identify and describe the major variables for consumer segmentation
– Outline how companies select target markets and implement segmentation
strategies
– Show how market segmentation and the marketing mix are interlinked in the
positioning strategy
3. • Segmentation Variables
– Geographic
– Demographic
– Psychographic
– Behavioral
– Other (anything!)
• No single best way to segment a market.
• Often best to combine variables and identify smaller, better-defined target groups.
4. Demographic
• Use Differences in:
– age, gender, family size, family life cycle, income, occupation, education, race,
and religion
– Most frequently used segmentation variable
• Ease of measurement and high availability
– Usually the worst variable to use.
Psychographic
Psychographic segmentation divides a market into different groups based on social
class, lifestyle, or personality characteristics.
People in the same demographic classification often have very different lifestyles
and personalities.
5. Behavioral
• Occasion
• Loyalty Status
– Special promotions & labels for
holidays. Nonusers, ex-users, potential
users, first-time users, regular
– Special products for special occasions.
users
• Benefits Sought • Usage Rate
– Different segments desire different Light, medium, heavy.
benefits from the same products
Loyalty Status H
Split loyals
Shifting loyals
Switchers
6. User & Loyalty Status
Target
Market
Unaware Aware
Not Tried Tried
Negative Favorable Not yet
Neutral Rejector Repeated
Option option repeated
Loyal to Loyal to
Switcher
other brand brand
Regular
Light User Heavy User
User
7. Effective Segmentation
Measurable
• Size, purchasing power, profiles of segments can be measured
Accessible
• Segments can be effectively reached and served
Substantial
• Segments are large or profitable enough to serve
Differentiable
• Segments must respond differently to different marketing mix
elements & programs
Actionable
• Effective programs can be designed to attract and serve the
segments
8. Targeting Segments
Undifferentiated Differentiated Concentrated Micromarketing
Marketing Marketing Marketing
• Mass • Segmented • Niche • Local or
Marketing Marketing individual
Marketing
Target Narrowly Target Broadly
