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Segmentation & Targeting
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7. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • No market Segmentation Complete Segmentation Market Segmentation by Income Classes 1, 2, and 3 Market Segmentation by age classes A & B Multi-dimensional Market Segmentation By income-age class 2 2 1 1 1 3 a a a b b b 1b 1a 2b 3a 3b Different Segmentations of a Market
16. BEVERAGE Liquid Thirst quenching Good with Food SUPERORDINATE LEVEL carbonated cola cold slightly sweet Preservatives SOFT DRINK SOFT DRINK fruit slightly sweet nutritious cold all natural B A S I C Artificial Sweetener All Natural Soft Drink diet cola diet unusual healthy Orange Juice breakfast Fruit Juice w/ Preservatives artificial taste unhealthy stores well SUBORDINATE LEVEL Network Category
17. Benefit Segmentation of the Toothpaste Market Benefit Demographics Behaviorists Psychographics Brand Segments Network Economy Men Heavy users High autonomy Sale (low value oriented Brands price) Medicinal Large Heavy users Hypochondriac, Crest (prevent families conservatives decay) Cosmetic Teens, Smokers High Macleans, (bright young adults, sociability, Ultra teeth) active Bright Taste Children Spearmint High self- Colgate, (good lovers involvement, Aim Tasting) hedonistic
Personality -- gregarious, introverted, authoritarian, etc.
Occasions -- regular occasion, special occasion benefits sought -- quality, service, economy, speed user status -- nonuser, ex-user, potential user, first-time user, regular user usage rate -- light user, medium user, heavy user loyalty status -- none, medium, absolute readiness stage -- unaware, aware, informed, interested, desirous, intend to buy
Occasions -Travel agency: air travel related to business, vacation or family VACATION= why charter airlines exist - Oranage Juice= extension of occasional use = Not just for B anymore _Mother’s Day and Farther’s Day = promoted to increase sale of candy, flowers and cards. -Curtis Candy company= promoted “trick or treat” at Halloween to get every home ready to dispense candy. Benefits sought -Requires a determination of what major benefits people want In a product class -Yankelovich: Watches= low price, durability, quality Timex= did not focus on only quality segment; Toothpaste User status -Light, medium and heavy users= volume segmentation; Beer study: found that 68% didn’t drink beer; 12% were light users, 16% accounted for 88% of the beer consumption = get one heavy user over several light users.; Loyalty Status: Hard core loyals; Shifting loyals, Swittchers P. 262 Kotler
![Market Segmentation A fundamental principle of marketing ,[object Object],[object Object],[object Object],[object Object]](https://image.slidesharecdn.com/segmentationtargeting-090912020421-phpapp01/85/Segmentation-Targeting-1-320.jpg)
![Definition ,[object Object],Although not all these consumers are completely alike, they share relatively similar needs and wants Marketing action: involves efforts, resources, and decisions--product, distribution, promotion, and price](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)