Transcript Chapter 7 - Cengage Learning

6
Segmenting and
Targeting
Markets
Prepared by
Deborah Baker
Texas Christian University
Chapter 6
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1
Learning Objectives
1. Describe the characteristics of markets
and market segments
2. Explain the importance of market
segmentation
3. Discuss criteria for successful market
segmentation
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Learning Objectives (continued)
4. Describe the bases commonly used to
segment consumer markets
5. Describe the bases for segmenting
business markets
6. List the steps involved in segmenting
markets
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Learning Objectives (continued)
7. Discuss alternative strategies for
selecting target markets
8. Explain one-to-one marketing
9. Discuss the forces that have influenced
the emergence of one-to-one marketing
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Learning Objectives (continued)
10. Discuss privacy issues related to
one-to-one marketing
11. Explain how and why firms implement
positioning strategies and how product
differentiation plays a role
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5
Market Segmentation
1
Market
People or organizations with
needs or wants and the ability and
willingness to buy
Market
Segment
A subgroup of people or organizations
sharing one or more characteristics that
cause them to have similar product
needs.
Market
Segmentation
The process of dividing a market into
meaningful, relatively similar, identifiable
segments or groups.
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6
A Market Is...
(1)
people or organizations with
(2)
needs or wants, and with
(3)
the ability and
(4)
the willingness to buy.
A group of people that lacks any one of these
characteristics is not a market.
1
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7
The Importance of Market Segmentation
Market
segmentation
More precise
definition of
customers needs
and wants
More accurate
marketing
objectives
Improved
resource
allocation
Better marketing
results
2
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8
Criteria for Segmentation
Substantiality
Identifiability/
Measurability
Accessibility
Responsiveness
8
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Bases for Segmentation
Geography
Demographics
Psychographics
Benefits Sought
Usage Rate
4
Online
http://www.toofaced.com
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10
Family Life Cycle
Age
Marital
Status
4
Children
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Bases for Psychographic Segmentation
Personality
Motives
Lifestyles
Geodemographics
4
Online
http://www.marthastewart.com
http://www.goodhousekeeping.com
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Business Marketing Segmentation
Segmentation
Bases
Company
Characteristics
Customer
Relationship
Buying
Processes
Online
http://www.homedepot.com
5
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13
Steps in Segmenting a Market
Select
a
market
for
study
6
Choose
bases
for
segmentation
Select
descriptors
Profile
and
analyze
segments
Select
target
markets
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Design,
implement,
maintain
mkting
mix
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Strategies for Selecting Target Markets
Undifferentiated
Strategy
Concentrated
Strategy
Multisegment
Strategy
Online
http://www.potterybarn.com
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15
What Is One-to-One Marketing?
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One-to-One
Marketing is...
With a Goal of…
Individualized
Strong Relationships
Information-Intensive
Customer loyalty
Long-Term Oriented
Profitability
Personalized
Cost Reduction
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Forces Influencing One-to-One Marketing
More diverse society
More demanding,
time-poor consumers
Declining brand loyalty
Emergence of new
media alternatives
Demand for
marketing accountability
9
Online
http://www.msnbc.com
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Effective Positioning
1.
Assess the positions occupied by
competing products
2.
Determine the dimensions of these
positions
3.
Choose an effective market position
Online
http://www.pg.com
11
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Positioning Bases
Attribute
Price and Quality
Use or Application
Product User
Product Class
Competitor
Emotion
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