8-1 marketing management 8 identifying market segments and targets

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MARKETING MANAGEMENT

8 Identifying Market

Segments and Targets

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Chapter Questions

• What are the different levels of market segmentation?

• How can a company 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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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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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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Four levels of Micromarketing

Segments

Local areas Individuals

Niches

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Basic Market Preference Patterns

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Customerization

Combines operationally drivenmass customization with customizedmarketing in a way that empowers

consumers to design theproduct and service offering

of their choice.

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Segmenting Consumer Markets

GeographicGeographic

DemographicDemographic

PsychographicPsychographic

BehaviouralBehavioural

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Demographic Segmentation

Age and Life CycleAge and Life Cycle

Life StageLife Stage

GenderGender

IncomeIncome

GenerationGeneration

Social ClassSocial Class

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Toyota Scion targets Gen Y consumers

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Loyalty Status

Switchers

Shifting loyals

Split loyals

Hard-core

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The Conversion Model

Convertible Shallow Average Entrenched

Strongly

unavailableAmbivalent Available

Weakly

unavailable

Users Nonusers

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Models of Sequential Segmentation

Stage of decision

• First-time prospects

• Novices

• Sophisticates

Orientation

• Price-oriented

• Solution-oriented

• Strategic-value

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Patterns of Target Market Selection

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Patterns of Target Market Selection

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Effective Segmentation Criteria

MeasurableMeasurable

SubstantialSubstantial

AccessibleAccessible

DifferentiableDifferentiable

ActionableActionable

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Segment-by-Segment Invasion Plan

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Pepsi in India

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Marketing Discussion

How would you classify yourself interms of the various segmentationschemes?