Transcript Chapter07

MARKETING MANAGEMENT
Market Segments
and Targets
8-1
Chapter Questions
How can markets be segmented?
How can a company best divide a market
into segments?
How should a company choose the most
attractive target markets?
What are the requirements for effective
segmentation?
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Mature
consumers
are a rapidly
growing market
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A Mass Market Approach
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General Motors
Alfred P. Sloan
“A car for every purse and purpose”
• Cadillac
• Oldsmobile
• Pontiac
• Buick
• Chevrolet
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Mercedes
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Volvo
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Volvo
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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.
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Basic Market Preference Patterns
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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioural
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Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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Toyota Scion targets Gen Y consumers
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Patterns of Target Market Selection
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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.
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Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
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Marketing Discussion
1. Who are the most attractive targets?
2. When does it make sense to
“fire your customer?
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