Transcript Kotler_ch07 - Pearson Canada

A FRAMEWORK for
MARKETING MANAGEMENT
Chapter 7
Identifying
Market
Segments
and Targets
Kotler
Keller
Cunningham
Chapter Questions
• How can a company identify the segments
that make up a market?
• What criteria can a company use in
selecting attractive segments to enter
through target marketing?
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Profile: Canadian Marketing Excellence
LULULEMON
• lulelemon athletica was founded in 1998 by Chip Wilson, a yoga
enthusiast
• To get instant feedback, the company put its design room in the
middle of its retail store
• Yoga instructors were asked to test the clothing and began
recommending it to their own students
• Products are priced at a
premium to reflect their
innovative design which
houses high performance
athletic wear
• lululemon now has stores
across Canada, the United
States, Tokyo, and Melbourne
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Effective Targeting Requires...
• Identifying and profiling distinct groups of
buyers who differ in their needs and
preferences
• Selecting one or more market segments
to enter
• Establishing and communicating the
distinctive benefits of the market offering
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Levels of Market Segmentation
Segment marketing
Niche marketing
Local marketing
Customerization
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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
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Figure 7.1 Basic Market-Preference Patterns
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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioural
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Segmenting Consumer Markets
Bases for
Segmentation
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Geographic
Demographic
Psychographic
Behavioural
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Nation or country
Province or region
City or metro size
Density
Climate
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Segmenting Consumer Markets
Bases for
Segmentation
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Geographic
Demographic
Psychographic
Behavioural
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Age, race, gender
Income, education
Family size
Family life cycle
Occupation
Religion, nationality
Generation
Social class
•
Example: RBC Financial created
a “gender intelligent sales force”
that led to a 29% increase in
customer satisfaction in women
entrepreneurs
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Segmenting Consumer Markets
Bases for
Segmentation
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Geographic
Demographic
Psychographic
Behavioural
• Lifestyle
• Activities
• Interests
• Opinions
• Personality
• Core values
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Segmenting Consumer Markets
Bases for
Segmentation
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Geographic
Demographic
Psychographic
Behavioural
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Occasions
Benefits
User status
Usage rate
Loyalty status
Buyer-readiness
Attitude
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Behavioural Segmentation:
Decision Roles
Initiator
Influencer
Decider
Buyer
User
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Behavioural Segmentation Variables
Occasions
Attitude
Benefits
Variables
Loyalty
Buyerreadiness
User
status
Usage
rate
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Loyalty Status
Hard-core
Split loyals
Shifting loyals
Switchers
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Major Segmentation Variables
for Business Markets
Demographic
Operating variable
Purchasing approaches
Situational factors
Personal
characteristics
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Sequential Segmentation and
Stage of Purchase Process
First-time prospects
Novices
Sophisticates
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Effective Segmentation Criteria
Measurable
Actionable
Substantial
Accessible
Differentiable
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Marketing Skills: Evaluating Segments
THE GLOBE & MAIL
•The Globe and Mail is only one of two national daily newspapers
in Canada
•Aims to provide a national and international flavour to its
newspaper content
•It decided that it needed to reassert its
leadership in its original geographic
segment, Toronto
•The paper consolidated its local news
coverage with the launch of a daily Toronto
section
•The intention was to more effectively reach
Toronto’s influential readership
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Steps in Segmentation Process
Needs-based segmentation
Segment identification
Segment attractiveness
Marketing-mix
strategy
Segment profitability
Segment positioning
Segment acid test
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Figure 7.3 Patterns of Target Market Selection
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Additional Considerations
• Segment-by-segment invasions
• Updating segmentation schemes
• Ethical choices of target markets:
• The Concerned Children’s Advertisers (CCA)
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For Discussion
How would you classify yourself in
terms of the various segmentation
schemes discussed in the chapter?
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