1. The document discusses identifying market segments and selecting target markets. 2. It outlines the steps in market segmentation, targeting, and positioning which include identifying segmentation variables, developing segment profiles, evaluating segment attractiveness, and selecting target segments. 3. The document provides examples of bases for segmenting consumer and business markets such as demographics, behaviors, and psychographics.

1. Identifying Market Segments and Selecting Target Markets

3. Steps in Market Segmentation, Targeting,and Positioning 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Segmentation 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Targeting 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept Market Positioning

4. Basic Market-Preference Patterns (a) Homogeneous preferences Sweetness Creaminess (c) Clustered preferences Creaminess Sweetness (b) Diffused preferences Creaminess Sweetness

6. Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic

9. Heavy and Light Users of Common Consumer Products HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94%) 25% 29% 79% 21% Toilet tissue (95%) Shampoo (94%) 75% 25% 17% 17% Paper towels (90%) Cake mix (74%) Cola (67%) 83% 83% 13% 5 % 87% 19% Beer (41%) Dog food (30%) Bourbon (20%) 81% 95%

11. Five Patterns of Target Market Selection Single-segment concentration Product specialization M1 M2 M3 P1 P2 P3 Selective specialization M1 M2 M3 P1 P2 P3 M1 M2 M3 Full market coverage P1 P2 P3 Market specialization M1 M2 M3 P1 P2 P3 P1 P2 P3 M1 M2 M3 P = Product M = Market

12. Segment-by-Segment Invasion Plan Customer Groups Truckers Railroads Airlines Large computers Product Varieties Personal computers Mid-size computers Company B Company C Company A