Transcript Chapter 10 Market Segmentation slides for Marketing

Chapter 10
Market Segmentation
Chapter 10
slides for
Marketing
for
Pharmacists,
2nd Edition
Learning Objectives
 Define market segmentation, targeting, and
positioning.
 Discuss the purpose of market segmentation.
 List characteristics of desirable market
segments.
 List ways in which pharmacists can segment
their markets, and give examples of each.
 Suggest several ways in which practicing
pharmacists can conduct market research.
 Discuss the steps involved in segmenting
markets.
Market segmentation
consists of
Segmenting
Targeting
Positioning
Segmenting Markets
Marketers who target segments of
a market can better meet the
needs of those targeted.
Marketing segmentation defined:
Process of dividing a market
Forming smaller subgroups
Based upon common characteristics.
Segmenting (e.g., diabetes)
Target Marketing
Marketers target attractive markets
with a unique marketing mix (i.e., price,
product, promotion, place).
The challenge is to determine important
similarities and differences that help
Spot market opportunities
Offer a product more finely tuned to the
needs of target customers
Refine marketing messages
Command premium prices.
Targeting
Positioning
Desirable market segments
Identifiable
Accessible
Sizable
Responsive to your targeted
marketing mix
Selecting segmentation
variables
Through experience and intuition
By adopting the ideas of others
By analyzing customer data
Marketing
strategies
associated
with
segmentation
Common Market
Segments in Pharmacy
Demographic/Geographic
Segmentation
Most
common
and easiest
to use
TIP
Useful because
Behavior is often
related
Demographic/geographic
segmentation
Age
Sex
Race
Income
Social class
Education
Health insurance
Job
Residence
Place of birth
Sources of geographic/demographic data
 U.S. Bureau of Labor Statistics
 U.S. Census Bureau
 U.S. Department of Commerce
 U.S. Internal Revenue Service
 U.S. Social Security Administration
 National Center for Health Statistics
 Individual state and local government sources
 Small Business Administration
 Professional and trade associations and journals
 American Demographics magazine
 Prevention magazine
 Local chambers of commerce
 Local libraries
Senior
subsegments
Available discretionary
income
A senior’s general level
of health
General activity level of
seniors
Amount of
discretionary time not
taken up with family,
job, and social activities
Degree of social
interaction with others
Cohort Segmentation
Swing Generation, Greatest
Generation, Boomers,
Generation Jones, Baby Busters,
Echo Boomers, Generation X,
Generation Y, Millennials
Psychographic
Segmentation
Helps
explain why
people act
in certain
ways
TIP
Useful in crafting
promotional
messages
Psychographic segmentation
Personality (e.g.,
conservative, control freak)
Lifestyle (e.g., soccer moms,
cocooners)
Values (e.g., self-respect)
Healthstyles
Disciples – Obedient, trusting, highly
compliant
Medical buffs – Engaged, adherent, trusting
of physicians but feel in control of own
health
Naturalists – Shun pharmaceuticals in favor
of holistic remedies
Immortals – Devil-may-care types,
disregard physician’s recommendations
Fatalists – Feel health is out of control.
Often noncompliant
Source: Consumer Health Sciences
Barriers to treatment
How to reach
Message
Disciples
Sometimes forgetful. Pharmacists, advertising,
popular press
Remind. Reinforce
benefits of treatment.
Medical
buffs
Have strong brand
ideas. First to
switch brands.
Internet, medical
publications, brand- specific
ads
Position treatment as
patient-doctor
relationship. Stress
brand superiority
Naturalists
Distrust traditional.
Anxious about side
effects.
Guerrilla marketing,
condition-specific Web site,
nonbranded ads, POP
displays
Position treatment as
part of healthy
lifestyle. Empha- size
the natural.
Immortals
Ill-informed, often in
denial.
Family members, peers,
telephone reminders
Deliver wake-up call.
Clarify necessity for
treatment
Fatalists
Feel hopeless and
helpless.
Family members, peers,
telephone reminders
“With help, you can
overcome
symptoms.”
Behavioral Segments
Based on
the Pareto
principle
(80/20 rule)
Behavioral segmentation
Usage (e.g., heavy, medium, light)
Occasion (e.g., major/minor illnesses,
home or vacation, self or family member)
User status and loyalty (e.g., first time,
repeat, potential users)
Potential behavior (e.g., readiness to act)
Willingness to adopt innovations
Opinion
Leaders
Innovators
Early
Rate of Adoption
Early
Adopters
Early
Majority
Late
Majority
Average
Rate of Adoption
Laggards
Late
Rate of Adoption
Special cases of behavioral
segmentation
Disease management
Case management
Benefits Segmentation
Behavior is
linked to
benefits
sought.
TIP
Related to total product
concept
(Chapter 2)
Luxury
Benefits segmentation
Quality buyers – best without
regard to cost
Service buyers – personal caring
and service
Value buyers – best value for the
money. Quality should match price.
Economy buyers – cheapest
alternative that will minimize cost
It’s Not Only About Price
at Wal-Mart March 2, 2007 NYTimes
“Brand aspirationals” (people with low
incomes who are obsessed with
names like KitchenAid)
“Price-sensitive affluents” (wealthier
shoppers who love deals)
“Value-price shoppers” (who like low
prices and cannot afford much more)
Wal-Mart’s “Power” Product
Categories
 Food
 Entertainment
 Apparel
 Home goods
 Pharmacy
High Quality
Value
Buyers
Luxury
Buyers
OTC
Market
Low
Price
Economy
Buyers
Low Quality
High
Price
Empirical v. HypothesisDriven Approaches
Experience versus
experimentation
TIP
The world is becoming too
complex to rely solely
on experience.
Segmentation for
Practicing Pharmacists
All pharmacists
should segment
and target
patients.
TIP
Segmentation is a tool
to help serve patients.
Researching the market
Talk with patients.
Invite a group of patients to chat.
Conduct surveys.
Read.
Use the Internet.
Mine patient data files.
Observe how customers shop.
Test market ideas.
Using segmentation in practice
Step 1: Identify key market segments.
Step 2: Learn as much as you can about the
segments in which you are interested.
Step 3: Describe a typical person in a segment.
Step 4: Determine the desirability of segment.
Step 5: Select segments and create written plans.
Step 6: Establish a budget.
Step 7: Develop measures for the success of
targeting efforts, e.g., sales volume,
number of repeat visits.
Step 8: Choose a future date when you will
reassess your marketing efforts.
Conclusion
People do not always fall into neat
segments.
Those who do often act differently
from others in their segment.
Segmentation is only a tool. Never
stop observing and questioning.
Questions?