Mktg seg

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Mktg seg

  1. 1. Market Segmentationand Target Markets chapter 7 Harcourt, Inc.
  2. 2. Objectivess Understand the concepts: market, segmentation, and target marketss Learn the advantages and disadvantages of target marketings Explain the steps in target market selection Dr. Rosenbloom
  3. 3. Objectivess Discuss segmentation criteria, strategies, bases, and information sourcess Understand market profiling and positioning strategiess Discuss differences for business and international marketing Dr. Rosenbloom
  4. 4. What is a market?s Individuals or organizations who: s Are willing, able, and capable of purchasing a firm’s product s Segmentation is critical because demand is often heterogeneous Dr. Rosenbloom
  5. 5. What is market segmentation? s Market Segmentation s Process of dividing a large market into smaller target markets, or customer groups with similar needs and/or desires Dr. Rosenbloom
  6. 6. Market SegmentationMassMarket Niche Micro- marketing The Individual entation Size f Market Segm Continuum o Personal- Micro- izationStandardized Niche marketing Marketing Mix Dr. Rosenbloom
  7. 7. Target Marketings Advantages s Easier analysis of potential and actual consumers s Tailoring of products to market s Assessment of demand potential s Identify competing products s Increased sales effectiveness and cost efficiencies s Product positioning and easy identification of opportunities Dr. Rosenbloom
  8. 8. Target Marketings Disadvantages s Increased marketing costs s Personalization can become burdensome to manage s Faux segmentation may be viewed cynically s Narrow segmentation can impact brand loyalty s Ethics and stereotyping issues Dr. Rosenbloom
  9. 9. Target Market SelectionIdentify Total Market Determine Need for Segmentation Determine Bases for Segmentation Assess Potential ProfitabilityProfile Each Selected of Segment and Select Segment Target Segment Select Positioning Strategy Develop and Implement Appropriate Marketing Mix Monitor, Evaluate and Dr. Rosenbloom Control
  10. 10. Market Criterias Segmentable markets are: s Heterogeneous s Measurable s Substantial s Actionable • Companies must be able to respond to preferences with an appropriate marketing mix s Accessible • Market must be efficiently reachable Dr. Rosenbloom
  11. 11. External Factorss Stage in product life cycles Competitions Product specific issuess Market for the product Dr. Rosenbloom
  12. 12. Segmentation VariablesDemographic Benefits-SoughtSegmentation Segmentation Geographic SituationSegmentation Segmentation Psychographic Behavior/UsageSegmentation Segmentation Dr. Rosenbloom
  13. 13. Demographic SegmentationAge Income Level FamilyEducation Ethnicity Dr. Rosenbloom
  14. 14. Demographic Segmentations Age s Some products are marketed to specific age groups Dr. Rosenbloom
  15. 15. Demographic Segmentations Age s Some products are marketed to specific age groups Dr. Rosenbloom
  16. 16. Demographic Segmentations Income Level s Some products are marketed to consumers with different income levels Dr. Rosenbloom
  17. 17. Demographic Segmentations Income Level s Some products are marketed to consumers with different income levels Dr. Rosenbloom
  18. 18. Demographic Segmentation Bartles and James Dr. Rosenbloom Hal Riney and Partners
  19. 19. Demographic Segmentations Family s Some products are marketed to consumers with special family consideration • Family Life Cycle • Bachelor, marriage, married with children, retired, etc. Dr. Rosenbloom
  20. 20. Functions Of Advertising KinderCare Dr. Rosenbloom The Martin Agency
  21. 21. Demographic Segmentations Family s Some products are marketed to consumers with special family consideration • Family Life Cycle • Bachelor, marriage, married with children, retired, etc. Dr. Rosenbloom
  22. 22. Demographic Segmentations Education s Some products are marketed to consumers with certain educational levels Dr. Rosenbloom
  23. 23. Demographic Segmentations Ethnicity s Some products are marketed to consumers from specific ethnic backgrounds Dr. Rosenbloom
  24. 24. Demographic Segmentations Ethnicity s Some products are marketed to consumers from specific ethnic backgrounds Dr. Rosenbloom
  25. 25. Segmentation VariablesDemographic Benefits-SoughtSegmentation Segmentation Geographic SituationSegmentation Segmentation Psychographic Behavior/UsageSegmentation Segmentation Dr. Rosenbloom
  26. 26. Geographic Segmentations When an organization localizes its marketing efforts to accommodate the unique needs of specific geographic regions Dr. Rosenbloom
  27. 27. Geographic Segmentations When an organization localizes its marketing efforts to accommodate the unique needs of specific geographic regions Dr. Rosenbloom
  28. 28. Geographic Segmentations Metropolitan Statistical Areas s An urbanized area of 50,000 and a total metropolitan area population of at least 100,000 • Charlottesville, Virginia Dr. Rosenbloom
  29. 29. Geographic Segmentations Primary Metropolitan Statistical Areas s An urbanized county or cluster of counties with a population of more than 1 million • Gary/Hammond, Indiana Dr. Rosenbloom
  30. 30. Geographic Segmentations Consolidated Metropolitan Statistical Area s A metropolitan area that includes at least two PMSAs • Baltimore, Maryland and Washington, D.C. Dr. Rosenbloom
  31. 31. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  32. 32. Psychographic Segmentation s Grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions) s PRIZM analysis from Claritas Dr. Rosenbloom
  33. 33. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  34. 34. Benefits-Sought Segmentations Markets can be segmented based on the benefits that consumers desire from using a specific product Dr. Rosenbloom
  35. 35. Benefits-Sought Segmentation American Pork Council Dr. Rosenbloom Bozell, Incorporated
  36. 36. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  37. 37. Situation Segmentations Purchase situation or occasion s Physical surroundings s Social surroundings s Temporal perspective • How much time to make a purchase? s Task definition s Pre-purchase attitude Dr. Rosenbloom
  38. 38. Segmenting Consumer Markets Demographic Benefits-Sought Segmentation Segmentation Geographic Situation Segmentation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Dr. Rosenbloom
  39. 39. Behavior/Usage Segmentations Markets can be segmented by how often or how heavily consumers use a specific product s 80/20 Principle - 80% of revenue generated by 20% of customers Light Users 80% Heavy Users 20% Dr. Rosenbloom
  40. 40. Segmentation Datas Internal sources s In-house customer and marketing databases s Data mine to explore patterns and relationships in collected datas External sources s Lists of catalog/magazine subscribers s U.S. Census information s Mediamark, CACI Marketing Systems, etc. Dr. Rosenbloom
  41. 41. Positioning Strategys Differentiation through: s Price/quality - emphasize value in terms of quality, price, or both Dr. Rosenbloom
  42. 42. Positioning Strategys Differentiation s Differentiation through: through: s Product attributes - s Symbol - use of a characteristics as a symbol or icon to positioning base position a product s Product usage - in the consumer positioning based consciousness on a products typical use Dr. Rosenbloom
  43. 43. Positioning Strategys Differentiation through: s Product user - the typical user of a product Dr. Rosenbloom
  44. 44. Positioning Strategys Differentiation through: s Product class - positioning against another type of product or product class Dr. Rosenbloom
  45. 45. Positioning Strategys Differentiation through: s Competition - comparisons to a product’s competition (directly or indirectly) Dr. Rosenbloom
  46. 46. Segmenting Business Marketss Demographics s Industry size, growth potential, etc.s Operating Characteristics s Technology, brand-user status, etc.s Purchasing Approaches s Purchasing policies, size of orders, etc. Dr. Rosenbloom
  47. 47. Segmenting Business Marketss Product Use or Usage Situation s The way the product will be used and customer service levels requireds Situational Factors s Urgency, special product usess Buyer’s Personal Characteristics Dr. Rosenbloom
  48. 48. Segmenting Global Marketss Economic s Stage of development in a host countrys Political/Legal s Regulations and lawss Cultural s Language barriers, differences in consumer customs Dr. Rosenbloom
  49. 49. Segmenting Global Marketss Some segments transcend national borders s Rich around the world s Older and comfortable s Indulged kids s Emerging middle class s Women employed outside the house Dr. Rosenbloom
  50. 50. Market Segmentations Differentiateds Concentrateds Undifferentiated Dr. Rosenbloom
  51. 51. Differentiated Marketings Differentiated Marketing s An organization targets multiple market segments and develops segment specific mixes Dr. Rosenbloom
  52. 52. Concentrated Marketings Concentrated Marketing s When an organization concentrates its marketing efforts on a smaller segment of a larger market Dr. Rosenbloom
  53. 53. Undifferentiated Marketings Undifferentiated Marketing s An organization develops one strategy appropriate for all members of the total market Dr. Rosenbloom

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