Identifying Market Segments and Targets

1
Identifying Market Segments and Targets

• Chapter 9

2
Why Segment Markets?

• Market Fragmentation condition when peoples
  diverse interests and backgrounds divide them
  into numerous different groups with different
  needs and wants.
• Market Segmentation the process of dividing a
  larger market into smaller pieces based on one or
  more meaningful, shared characteristics.

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Segmentation Strategies and Frameworks

• Product Differentiation Using different
  marketing mix activities to help consumers
  perceive the product as being different and
  better than competitors.
• Market-Product Grid A framework to relate the
  segments of markets to products offered.

4
When to Segment Markets

• One Product and Multiple Market Segments
• Multiple Products and Multiple Market Segments
• Segments of One Mass Customization

5
Steps in Segmenting and Targeting Markets

• Form prospective buyers into segments
• Form products to be sold into groups
• Develop a market-product grid and estimate size
  of markets
• Select Target Markets
• Take marketing actions to reach target markets

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Form Prospective Buyers into Segments

• Customer Characteristics
• Geographic
• Demographic
• Socioeconomic
• Psychographic

• Buying Situations
• Outlet Type
• Benefits Sought
• Usage
• Awareness and Intentions
• Behavior

Claritas

• Organizational Buyers
• Location, NAICS Code, Number of Employees,
  Benefits sought

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Form Products to be Sold Into Groups

• How will the products be grouped so the buyers
  can relate to them?

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Develop a Market-Product Grid and Estimate Size
of Markets
9
Select Target Markets

• Targeting evaluating the attractiveness of each
  segment and determining which group to invest
  resources against to try to turn them into
  customers.
• Evaluation of Segments
• Market Size
• Expected Growth
• Competitive Position
• Cost of Reaching the Segment
• Compatibility with the Organizations Objectives
  and Resources

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Select Target Markets--continued

• Choosing a Targeting Strategy
• Undifferentiated Marketing
• Differentiated Marketing
• Concentrated Marketing
• Customized Marketing

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Take Marketing Actions to Reach Target Markets
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Developing Cross-Tabulation

• A method of presenting and relating data having
  two or more variables.

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Positioning

• Developing a marketing strategy aimed at
  influencing how a particular market segment
  perceives a good or service in comparison to the
  competition.
• Head-to-Head Positioning
• Differentiation
• Perceptual Maps

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Perceptual Map
Downscale
Vogue
Self
Architectural Digest
Cosmopolitan
Glamour
Mademoiselle
Ladies Home Journal
Fashion
Service
Harpers Bazaar
Family Circle
Redbook
Seventeen
Womans World
Downscale