Transcript Market Segmentation

Market
Segmentation
Market Segmentation and
Target Marketing in Today’s
Economy
 Market
segmentation is the process
by which a market is divided into
distinct subsets of customers with
similar needs and characteristics.
 Target marketing requires
evaluating the relative
attractiveness of various segments.
 Brand
positioning entails designing
product offerings and marketing
programs that can establish an
enduring competitive advantage in
the target market by creating a
unique brand image, or position.
 These three decision processes are
closely linked and have strong
interdependence.
 Most
markets are heterogeneous
 Markets
are complex entities that can
be defined in a variety of ways.
 Critical issue: Finding an appropriate
segmentation scheme that will facilitate
target marketing, positioning, and the
formulation of successful marketing
strategies and programs.
Target Marketing
 Target
marketing requires marketers to
take three major steps:



Identify and profile distinct groups of buyers
who differ in their needs and preferences
(market segmentation)
Select one or more market segments to
enter (market targeting)
For each target segment, establish and
communicate the key distinctive benefit(s)
of the company’s market offering. (market
positioning)
Levels and
Patterns of
Market
Segmentation
Mass Marketing VS Micro Marketing


Mass Marketing is a market coverage strategy
in which a firm decides to ignore market
segment differences and go after the whole
market with one offer.
Micro Marketing refers to the designing,
creating, and manufacturing products,
marketing strategies, and advertising
campaigns for the benefit of very specific
geographic, demographic, or psychographic
segments of the consumer market. It is a
relatively new marketing trend created by the
diversity of the consumer population and the
difficulty in creating a single product that
appeals to all the diverse groups in the
population.
SEGMENT MARKETING
 Market


Segment
A marketing technique that targets a group
of customers with specific characteristics.
Refers to the aggregating of prospective
buyers into groups (segments) that have
common needs and will respond similarly to
a marketing action.
 Sector
This is a subdivision of a market with
distinctive characteristics. Market sectors
are usually determined by market
segmentation, which divides a market into
different categories.
 Flexible
Market Offering
 Naked Solution - products and services
that all members of the segment values.
 Discretionary Options - products and
services that some members of the
segment values.
Ex. Ice Cream
NICHE MARKETING

Concentrating all marketing efforts on a small
but specific and well defined segment of
the population. Niches do not 'exist' but are
'created' by identifying needs, wants, and
requirements that are being addressed poorly
or not at all by other firms, and developing
and delivering goods or services to satisfy
them. As a strategy, niche marketing is aimed
at being a big fish in a small pond instead of
being a small fish in a big pond.
LOCAL MARKETING
 Local
marketing is the customization of
marketing mix variables to the
store level based on consumer,
competitor, and store characteristics.
INDIVIDUAL CUSTOMER
MARKETING
 Mass

Customization
Mass
production
of
goods
with
differing individual specifications through
the use of components that may be
assembled
in
a
number
of
different configurations. Mass customization
is a cost-efficient way of offering some of
the benefits of customization.
 Customerization


the customization of products or services
through personal interaction between a
company and the customer.
A company is said to customerize when it is
able to dialogue with individual customers
and respond by customizing its products,
services, and messages on a one-to-one
basis.
Geographic Segmentation
World Region or Country
Country Region
Province / City / Municipality
City or
Metro Size
Neighborhood
Density
Climate
Demographic Segmentation
 Age
 Gender
 Family
size
 Family life cycle
 Income
 Ethnicity
 Occupation
 Education
 Religion
 Generation
 Nationality
For women:
“L’Oreal Paris brings its grooming technology and
expertise to women……because you’re worth it.”
For men:
“Now,
L’Oreal Paris brings its
grooming technology and expertise to
men….because you’re worth it….
Psychographic Segmentation
 Personality
 Values
 Lifestyle
 Social
/ Economic Class
 Interests
Behavioral Segmentation
 Occasions
 Benefits
 User
Status
 User Rates
 Loyalty Status
 Readiness Stage
 Attitude Toward the Product