Segmentation Targeting Diffrentiation

1. Segmentation, Targeting and
Differentiation
Prepared and Presented by:
Lyncia Noronha 40
Palak Goyal 42
SYBMS

2. Segmentation

3. Meaning

Market segmentation is a marketing
strategy that involves dividing a
broad target market into subsets
of consumers who have common needs,
and then designing and implementing
strategies to target their needs and
desires using media channels and other
touch-points that best allow to reach
them.
23 February 2014
Marketing Presentation
Wilson College
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4. Product differentiation

Market segments allow companies to
create product differentiation strategies
to target them.
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Marketing Presentation
Wilson College
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5. Market Segmentation Strategies

Traditional Approaches to Market
Segmentation


Mass Marketing
Differentiated Marketing



Multisegment Approach
Market Concentration Approach
Niche Marketing
23 February 2014
Marketing Presentation
Wilson College
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6. Bases for Segmenting
Consumer Markets

Behavioral Segmentation


Demographic Segmentation


Segments based on demographic factors (e.g.,
gender, age, income, education, etc.)
Psychographic Segmentation


Segments based on actual behavior or product usage
Segments based on state-of-mind issues (e.g.,
motives, attitudes, opinions, values, lifestyles,
interests, personality, etc.)
Geographic Segmentation

Segments based on geographic location
23 February 2014
Marketing Presentation
Wilson College
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7. Segmenting Consumer Markets


Sometimes, multiple attributes are combined
to form segments
Multi-attribute segmentation via
geoclustering combines multiple variables to
identify smaller, better-defined target groups

PRIZM Geoclustering system uses
demographic, geographic, lifestyle, and
behavioral characteristics
23 February 2014
Marketing Presentation
Wilson College
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8. Segmenting Business Markets

Rackman and Vincentis proposed a
segmentation scheme that classifies
business buyers into three groups:



Price-oriented customers: best served via
transactional selling
Solution-oriented customers: best served by
means of consultative selling
Strategic-value customers: best served by
means of enterprise selling
23 February 2014
Marketing Presentation
Wilson College
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9. Segmentation, Marketing Mix,
and Targeting

10. Creating the Marketing Mix
PRODUCT
PRICE
23 February 2014
PLACE
PROMOTION College
Marketing Presentation
Wilson
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11. Goals for Marketing Mix




Create synergies
Use resources
effectively
Maintain consistent and
differentiated image
Link to specific
marketing goals and
objectives
23 February 2014
Marketing Presentation
Wilson College
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12. Mass Marketing Strategy
Product
Price
Distribution
Promotion
Single
Marketing Mix
All Customers
in the Market
Undifferentiated
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Marketing Presentation
Wilson College
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13. Multisegment Strategy
Product
Price
Distribution
Promotion
Product
Price
Distribution
Promotion
Multiple
Marketing Mixes
23 February 2014
Differentiated
Marketing Presentation
More Than One
Market Segment
Wilson College
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14. Market Concentration Strategy
Product
Price
Distribution
Promotion
Single
Marketing Mix
Differentiated
23 February 2014
Marketing Presentation
Focused on a Single
Market Segment
Wilson College
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15. Niche Marketing Strategy
Product
Price
Distribution
Promotion
Focused on a Small
Niche Market Segment
Single
Marketing Mix
Differentiated
23 February 2014
Marketing Presentation
Wilson College
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16. Customized Marketing Strategy
Product
Price
Distribution
Promotion
Product
Price
Unique
Marketing
Mixes
23 February 2014
Distribution
Promotion
Individual
Customers
Marketing Presentation
Wilson College
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17. Target Marketing Strategies

Five basic strategies for target market
selection:





(1) Single Segment Targeting
(2) Selective Targeting
(3) Mass Market Targeting
(4) Product Specialization
(5) Market Specialization
23 February 2014
Marketing Presentation
Wilson College
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18. Basic Target Marketing Strategies
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Marketing Presentation
Wilson College
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19. Discussion Question
Can you think of a product that could be
marketed effectively using a mass
marketing approach? If so, explain and
justify your answer. If not, what types of
changes would have to be made to the
product to make it appropriate for a mass
marketing approach?
23 February 2014
Marketing Presentation
Wilson College
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20. Discussion Question
Many consumers and consumer advocates
are critical of the one-to-one marketing
approach due to personal privacy concerns.
Marketers counter that one-to-one marketing
can lead to privacy abuses, but that the
benefits to both consumers and marketers
far outweigh the risks. Where do you stand
on this issue? Why?
23 February 2014
Marketing Presentation
Wilson College
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21. Discussion Question
What are some of the ethical and legal
issues involved in targeting sensitive
groups such as children and seniors?
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Marketing Presentation
Wilson College
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22. T
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Wilson College
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