1. ATENEO GRADUATE SCHOOL
OF BUSINESS
CHAPTER 8: Identifying Market
Segments and Targets
Submitted by:
Caballero, Volteire
Elainrose Esberto
Noel Paningbatan
Daiki Shimizu
May 4, 2012

2. CHAPTER 8: Identifying Market Segments
and Targets
Elaine’s work for group presentation

3. OBJECTIVES
 Understand the different level of market
segmentation
 Have an overview on how can a company divide a
market into segment
 Have an understanding on how should a company
choose the most attractive target markets
 Have an awareness on the requirements for an
effective segmentation

4. WHAT IS MARKETING?
CREATE COMMUNICATE DELIVER VALUE
SATISFY CUSTOMER’S NEEDS & WANTS BEAT THE COMPETITORS
GAIN PROFIT

5. WHAT IS MASS MARKETING?
One flavor of pizza originally
created for everyone Mass produced to sell to all buyers
Creates higher cost Results to lower profit

6. LEVELS OF MICROMARKETING
Defining your market
PIZZA = WHOLE MARKET

7. LEVELS OF MICROMARKETING
The market is divided into segments
Each flavor of pizza is a segment

8. LEVELS OF MICROMARKETING
The market is divided into segments
Each flavor of pizza is a segment

9. LEVELS OF MICROMARKETING
NICHE is identified by dividing the
segments into subgroups
NICHE

10. LEVELS OF MICROMARKETING
Ultimate level of segmentation leads to
Individual or customized marketing

11. LEVELS OF MICROMARKETING
Tailored to the needs and wants of local
customer group
Muslim Community Halal Pizza
Local Marketing – Halal Pizza for
our Muslim brothers / sisters

12. BASES FOR SEGMENTING CUSTOMER MARKETS
 Geographic
Location
Age & Life Cycle
Life Stage
Gender
 Demographic Income
Generation
Social Class
Gender
Personality
 Psychographic Trait
Life Style
Values
Life Style
Occasions
Benefits
 Behavioral User Status
Usage Rate
Buyer-Readiness
Divorce Loyalty Status
Attitude

13. 5 KEY CRITERIA FOR MARKET
SEGMENTS
Measurable
Differentiable
Substantial
Actionable
Accessible

14. CHOOSING THE MOST ATTRACTIVE
MARKET
Segment evaluation should be
reviewed considering two factors Company’s
Objective and
Resources
Overall
Attractiveness of
the Segment
Weighing in both factors would help us
create wiser decision for the company.

15. TISSUE DRAWING
Defining the market opportunity
Gap in meeting customer
needs and wants can be
relayed as the market
opportunities

16. TISSUE DRAWING
Determine the total market size
Gap in meeting customer needs and wants
can be relayed as the market opportunities
Pizza signify the market

17. TISSUE DRAWING
Divide the market into segments
Gap in meeting customer needs and wants
can be relayed as the market opportunities
Each portion / division
signifies the segment

18. TISSUE DRAWING
Identify your Target Niche
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
The certain portion is
the Niche

19. TISSUE DRAWING
Localized Market
Find your Niche
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the Per Group
Divide into segment
market opportunities

20. TISSUE DRAWING
Individual Marketing
Find your Niche Local Marketing
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
Divide into segment
Customized
market opportunities

21. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
Divide into segment
market opportunities
Bases for Segmenting
Geographic Psychological
Demographic
Behavioral

22. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
Divide into segment
market opportunities
Basis Criteria in Segmentation
Substantial
Differentiable
Actionable
Accessible
Measurable

23. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
Divide into segment
Criteria
Basis

24. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
Divide into segment
Criteria
Basis
WEIGH IN THE FACTORS
TO ENSURE EFFECTIVE
SEGMENTATION

25. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
Divide into segment
Criteria
Basis

26. Presentation on Chapter 8:
Identifying Market Segments and
Targets
Submitted by: Elainrose Esberto
May 4, 2012
ATENEO GRADUATE SCHOOL OF BUSINESS

27. Presentation on Chapter 8:
Identifying Market Segments and
Targets
Submitted by: Elainrose Esberto
May 4, 2012

28. ATENEO GRADUATE SCHOOL OF BUSINESS
CHAPTER 8:
IDENTIFYING
MARKET SEGMENTS
AND TARGETS
Submitted by:
Volteire R. Caballero
MBA-Standard
May 03, 2011

29. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

30. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

31. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

32. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

33. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

34. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

35. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

36. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

37. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

38. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

39. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

40. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

41. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

42. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

43. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

44. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

45. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS

46. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
SEGMENTING CONSUMER MARKETS

47. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
SEGMENTING CONSUMER MARKETS

48. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
SEGMENTING CONSUMER MARKETS

49. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
SEGMENTING CONSUMER MARKETS

50. IDENTIFYING MARKET
SEGMENTS AND TARGETS
Chapter 8
Daiki “Derek” Shimizu
May 4, 2012

51. OUTLINE:
EMBRACE TARGET MARKETING
1. Market segmentation (Chapter 8)
2. Market targeting (Chapter 8)
3. Market positioning (Chapter 10)

52. Outline: Market Segments and
Targets
1. Levels of Market Segmentation
2. Four levels of Micromarketing
3. Segmentation
4. Segmenting for Business Markets
5. Segmentation Process
6. Five key criteria in Market segments
7. Evaluating and Selecting the Market
Segments

53. CONCEPT 1
SEGMENTATION INCLUDES MASS MARKETING
Coke

54. MASS MARKETING CAN CREATE THE LARGEST
POTENTIAL MARKET BUT…
Proliferation

55. CONCEPT 2
FOUR LEVELS OF MICROMARKETING
Segment
> Niche
> Local
> Individual

56. Concept 3
Segmentation
Segmenting Consumer Markets are
Consumer characteristics
1. Geographic 2.Demographic 3.Psychographic

57. Concept 3
Segmentation
Segmenting Consumer Markets are
Consumer characteristics Consumer responses
1. Geographic 2.Demographic 3.Psychographic 4.Behavioral

58. GEOGRAPHIC SEGMENTATION CAN DIVIDE THE
MARKET BASED ON
• Nations
• States
• Regions
• Counties
• Cities
• Neighborhoods

59. DEMOGRAPHIC SEGMENTATION DIVIDES THE
MARKET BASED ON
1. Age and Life Cycle 2. Life Stage 3. Gender
4. Income 5. Generation 6. Social Class

60. PSYCHOGRAPHIC SEGMENTATION DIVIDES
THE MARKET BASED ON

61. BEHAVIORAL SEGMENTATION DIVIDES THE
MARKET BASED ON
1. Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User

62. BEHAVIORAL SEGMENTATION DIVIDES THE
MARKET BASED ON
2. Behavioral Variables
•Occasions
•Benefits
•User Status
•Usage Rate
•Buyer-Readiness
•Loyalty Status
•Attitude

63. Concept 4
SEGMENTING FOR BUSINESS
MARKETS
1. Demographic 2. Operating Variable 3. Purchasing
Approaches
4. Situational Factors 5. Personal
Characteristics

64. Questions to decided which to
serve in Demographic
1. Industry: Which industries?
2. Company size: what size
companies?
3. Location: What geographical areas?
Demographic

65. Questions to decided which to
serve in Operating Variables
1. Technology: What customer
technologies?
2. User or nonuser status: Which users? Heavy
users?
3. Customer capabilities: Should we
serve many of few services?
Operating Variables

66. Questions to decided which to
serve in Purchasing Approaches
1. Purchasing-function organization:
centralized?
2. Power structure: engineering
3. dominated? Financially dominated?
4. Nature of existing relationship: strong?
5. General purchasing policies: lease?
Service contract?
Operating Variables
6. Purchasing criteria: quality? Service?

67. Questions to decided which to
serve in Situational Factors
1. Urgency: quick and sudden?
2. Specific application: focus on
certain application? Or all?
3. Size or order: large or small
orders?
Situational Factors

68. Questions to decided which to
serve in Personal Characteristics
1. Buyer-seller similarity: people and
values are similar?
2. Attitude toward risk: risk-taking or
risk-avoiding customers?
3. Loyalty: high loyalty to their
suppliers?
Personal Characteristics

69. CONCEPT 5
SEGMENTATION PROCESS
Needs-Based Market Segmentation Approach:
1. Needs-Based Segmentation
2. Segment Identification
3. Segment Attractiveness
4. Segment Profitability
5. Segment Positioning
6. Segment “Acid Test”
7. Marketing – Mix Strategy

70. Concept 6
Market segments must rate on five
key criteria:
1. Measurable 2. Substantial 3. Accessible
UV
4. Differentiable 5. Actionable

71. Concept 7:
Evaluating and Selecting the
Market Segments
Single-segment Selective Product
Concentration Specialization Specialization
Market Specialization Full Market Coverage

72. Summary
Consumer
Consumer characteristics
responses
Individual
Geographic
Demographic
Psychographi
Local
c Behavioral
Segment
Niche
Demographic
Operating Variable Purchasing
Approaches
Situational Factors Personal Characteristics

73. IDENTIFYING MARKET
SEGMENTS AND TARGETS
Chapter 8
Daiki “Derek” Shimizu
May 4, 2012

74. ATENEO GRADUATE SCHOOL
OF BUSINESS
CHAPTER 8: Identifying Market
Segments and Targets
Submitted by:
Noel F. Paningbatan
May 4, 2012

75. FOUR LEVELS OF MARKETING
Segments Niches
Local Areas Individuals

76. SEGMENTING CONSUMER MARKETS
 Geographic
 Demographic
 Psychographic
 Behavioral

77. DEMOGRAPHIC SEGMENTATION
 Age and Life Cycle
 Life Stage
 Gender
 Income
 Generation
 Social Class

78. BEHAVIORAL SEGMENTATION
 Decision Roles
 Initiator
 Influencer
 Decider
 Buyer
 User

79. BEHAVIORAL SEGMENTATION Occasions
Benefits
User Status
Usage Rate
 Behavioral Variables Buyer-Readiness
Loyalty Status
Attitude
 Occasions
 Benefits
 User Status
 Usage Rate
 Buyer-Readiness
 Loyalty Status
 Attitude

80. THE BRAND FUNNEL
 Aware
 Ever Tried
 Recent Trial
 Occasional User
 Regular User
 Most Often Used

81. LOYALTY STATUS
Hardcore
Split Loyals
Shifting Loyals
Switchers

82. SEGMENTING FOR BUSINESS
MARKETS
 Demographic
 Operating Variable
 Purchasing Approaches
 Situational Factors
 Personal Characteristics

83. STEPS IN SEGMENTATION PROCESS
 Needs based segmentation
 Segment identification
 Segment Attractiveness
 Segment Profitability
 Segment Positioning
 Segment Acid Test

84. EFFECTIVE SEGMENTATION CRITERIA
Measurable
Differentiable
Substantial
Actionable
Accessible

85. TISSUE DRAWING
4 BUILDINGS
Local Areas Niches Individuals Segments

86. TISSUE DRAWING
With 4 floors each
4 BUILDINGS
1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
Local Areas Niches Individuals Segments

87. TISSUE DRAWING
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
6. Social Class
With 6 type of rooms per floor

88. TISSUE DRAWING
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Decision Roles
2 different buyers

89. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Decision Roles
2 different buyers

90. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Loyalty
Decision Roles Hardcore
Split Loyals
Shifting Loyals
Switchers
2 different buyers

91. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Loyalty
Decision Roles Hardcore
Split Loyals Demographic
Shifting Loyals Operating Variable
Switchers Purchasing Approaches
Situational Factors
Personal Characteristics
2 different buyers
Corporate Customer

92. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Punch list before
accepting buildings
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
Needs based segmentation
Segment identification
Segment Attractiveness
Segment Profitability
Segment Positioning
Segment Acid Test
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Loyalty
Decision Roles Hardcore
Split Loyals Demographic
Shifting Loyals Operating Variable
Switchers Purchasing Approaches
Situational Factors
Personal Characteristics
2 different buyers
Corporate Customer

93. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Punch list before
accepting buildings
With 4 floors each
Funnel rain catcher 1st: Geographic
2nd: Demographic
3rd: Psychographic
4 BUILDINGS
4th:Behavioral
1. Age and Life Cycle
Needs based segmentation 2. Life Stage
Segment identification
3. Gender
Segment Attractiveness
Segment Profitability 4. Income
Segment Positioning 5. Generation
Segment Acid Test 6. Social Class
Local Areas Niches Individuals Segments
With 6 type of rooms per floor
Behavioral Variables
Differentiable
Measurable
Loyalty Substantial
Accessible
Decision Roles Hardcore Actionable
Split Loyals Demographic
Shifting Loyals Operating Variable
Switchers Purchasing Approaches
Situational Factors Giving of keys upon
Personal Characteristics
purchase and turnover
2 different buyers
Corporate Customer

94. SUMMARY
 Marketing has four levels
 Market Segmenting includes geographic,
demographic, psychographic and behavioral
considerations
 Consider the decision roles and behavioral
variables of the customer
 Determine what sort of customer you have (Loyalty)
 Effective Segmentation Criteria is differentiable,
measurable, actionable, substantial and accessible

95. Presentation on Chapter 8:
Identifying Market Segments and
Targets
Submitted by: Noel Paningbatan
May 4, 2012
ATENEO GRADUATE SCHOOL OF BUSINESS