MARKETING MANAGEMENT 12th edition

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MARKETING MANAGEMENT12th edition

• 8
• Identifying Market
• Segments and
• Targets

Kotler Keller
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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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Fords Model T Followed a Mass Market Approach
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Steps in Market Segmentation, Targeting, and
Positioning
Market Segmentation 1. Identify bases for
segmenting the market 2. Develop segment profiles
Market Targeting 3. Develop measure of
segment attractiveness 4. Select target segments
Market positioning 5. Develop positioning for
target segments 6. Develop a marketing mix
for each segment
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Four levels of Micromarketing
Segments
Niches
Local areas
Individuals
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Segment Marketing
Targeting a group of customers who share a
similar set of needs and wants.
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Figure 8.1 Basic Market Preference Patterns
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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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Figure 8.2 Examples of Market Customization
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Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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Figure 8.4 The VALS Segmentation System
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Behavioral Segmentation

• Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User

• Behavioral Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude

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Figure 8.5 Behavioral Segmentation Breakdown
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Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal Characteristics
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Effective Segmentation Criteria
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Market TargetingEvaluating Market Segments

• Segment Size and Growth
• Analyze current sales, growth rates and expected
  profitability for various segments.
• Segment Structural Attractiveness
• Consider effects of competitors, availability
  of substitute products and, the power of buyers
  suppliers.
• Company Objectives and Resources
• Company skills resources needed to succeed in
  that segment(s).
• Look for Competitive Advantages.

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Market TargetingMarket Coverage Strategies
Market
Company Marketing Mix
Company Marketing Mix 1
Segment 1
Company Marketing Mix 2
Segment 2
A. Undifferentiated Marketing
Segment 3
Company Marketing Mix 3
Segment 1
Company Marketing Mix
Segment 2
B. Differentiated Marketing
Segment 3
C. Concentrated Marketing
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Figure 8.6 Patterns of Target Market Selection
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Figure 8.6 Patterns of Target Market Selection
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Figure 8.6 Patterns of Target Market Selection