This document discusses market segmentation strategies for businesses. It explains that market segmentation involves deciding on a segmentation strategy, dividing markets based on relevant dimensions like geography, demographics or psychographics, determining customer needs, and designing a tailored marketing mix. It provides examples of segmenting the toothpaste market based on sensory preferences and sociability, as well as segmenting the automobile market into categories like traditional, sporty, luxurious and functional.

1. Market Segmentation (chapter 5)

2. Market Segmentation Process Decide segmentation strategy Develop product positioning Divide markets on relevant dimensions Determine consumer needs and wants Delineate firm’s current situation Design marketing mix strategy

3. Identifying Relevant Dimensions A Priori/Post Hoc Useful bases geographic demographic social behavior thoughts & feelings multivariate Benefit segmentation toothpaste market sensory sociable worrier independent

4. Identifying Relevant Dimensions Psychographic the basic approach VALS 2 TM the dimensions resources self-orientations the descriptions Geodemographic PRIZM Minimal resources Abundant resources Figure 5-4 oriented oriented Status oriented Action Principle Actualizers Makers Strugglers Strivers Experiencers Achivers Fulfilleds Believers

5. Positioning Figure 5-6 Traditional Sporty Luxurious Functional Cadillac • • Mercedes Lincoln • Oldsmobile • • Chrysler • Buick Ford • Plymouth • Dodge • Mercury • • Pontiac • BMW • Porsche • Lexus • Chevrolet • Nissan • Toyota • Saturn • VW

6. Segmentation Strategy Not to enter Mass market too small heavy users dominance One segment Several segments Segmentation criteria measurable meaningful marketable Design Marketing Mix Strategy