C8

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  • Video icon links to Marriott snippet on offering different brands for specific segments.
  • C8

    1. 1. Identifying Market Segments and Targets Marketing Management, 13th ed 8
    2. 2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-2 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. 3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-3 Baby Boomers: A Lucrative Market
    4. 4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-4 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. 5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-5 Ford’s Model T Followed a Mass Market Approach
    6. 6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-6 Four levels of Micromarketing Segments Local areas Individuals Niches
    7. 7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-7 What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs ad wants.
    8. 8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-8 Gather.com: A Niche Social Networking Site
    9. 9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-9 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. 10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-10 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. 11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-11 Niche Marketers Enterprise Rent-A-Car targets the insurance- replacement market
    12. 12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-12 Baskin Robbins Focuses on Local Marketing
    13. 13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-13 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. 14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-14 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. 15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-15 Segmenting Consumer Markets GeographicGeographic DemographicDemographic PsychographicPsychographic BehavioralBehavioral
    16. 16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-16 Claritas’ Prizm • Education and affluence • Family life cycle • Urbanization • Race and ethnicity • Mobility
    17. 17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-17 Demographic Segmentation Age and Life CycleAge and Life Cycle Life StageLife Stage GenderGender IncomeIncome GenerationGeneration Social ClassSocial Class
    18. 18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-18 Toyota Scion Targets Gen Y Consumers
    19. 19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-19 Dove Targets Women
    20. 20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-20 Figure 8.1 The VALS Segmentation System
    21. 21. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-21 Behavioral Segmentation Decision Roles • Initiator • Influencer • Decider • Buyer • User Behavioral Variables • Occasions • Benefits • User Status • Usage Rate • Buyer-Readiness • Loyalty Status • Attitude
    22. 22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-22 The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage • Aware • Ever tried • Recent trial • Occasional user • Regular user • Most often used
    23. 23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-23 Loyalty Status Switchers Shifting loyals Split loyals Hard-core
    24. 24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-24 Figure 8.3 Behavioral Segmentation Breakdown
    25. 25. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-25 The Conversion Model Convertible Shallow Average Entrenched Strongly unavailable Ambivalent Available Weakly unavailable Users Nonusers
    26. 26. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-26 Segmenting for Business Markets DemographicDemographic Operating VariableOperating Variable Purchasing ApproachesPurchasing Approaches Situational FactorsSituational Factors Personal Characteristics Personal Characteristics
    27. 27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-27 Steps in Segmentation Process Needs-based segmentation Segment identification Segment attractiveness Segment profitability Segment positioning Segment acid test Marketing-Mix Strategy
    28. 28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-28 Effective Segmentation Criteria MeasurableMeasurable SubstantialSubstantial AccessibleAccessible DifferentiableDifferentiable ActionableActionable
    29. 29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-29 Figure 8.4 Patterns of Target Market Selection
    30. 30. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-30 Figure 8.4 Patterns of Target Market Selection
    31. 31. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-31 Figure 8.4 Patterns of Target Market Selection
    32. 32. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-32 Crest Whitestrips Follows a Multisegment Strategy
    33. 33. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-33 Figure 8.5 Segment-by-Segment Invasion Plan
    34. 34. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-34 Pepsi used Megamarketing in India
    35. 35. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-35 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. 36. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-36 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?

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