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K13 segmentation and_targeting
- 1. 8
Identifying
Market Segments
and Targets
Marketing Management
A South Asian Perspective, 13th ed
- 2. Chapter Questions
• What are the different levels of market
segmentation?
• How can a company divide a market
into segments?
• How should a company choose the
most attractive target markets?
• What are the requirements for effective
segmentation?
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-2
- 3. 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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- 4. Ford’s Model T Followed a Mass
Market Approach
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- 5. Four levels of Micromarketing
Segments Niches
Local areas Individuals
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-5
- 6. What is a Market Segment?
A market segment consists of a
group of customers who share a
similar set of needs ad wants.
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- 7. Gather.com: A Niche
Social Networking Site
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-7
- 8. Preference Segments
• Homogeneous preferences exist
when consumers want the same things
• Diffused preferences exist when
consumers want very different things
• Clustered preferences reveal natural
segments from groups with shared
preferences
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-8
- 9. The Himalaya Drug
Company serves a
growing niche
market by focusing
on ayurvedic
medicines and
health supplements
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-9
- 10. What is Customerization?
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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- 11. United Bank
Ltd. of
Pakistan offers
customized
Galleria credit
cards to its
customers
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- 12. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-12
- 13. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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- 14. Bank Al Habib
targets
senior citizens
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-14
- 16. Behavioral Segmentation
Decision Roles Behavioral Variables
• Initiator • Occasions
• Influencer • Benefits
• Decider • User Status
• Buyer • Usage Rate
• User • Buyer-Readiness
• Loyalty Status
• Attitude
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-16
- 17. The Brand Funnel Illustrates
Variations in the
Buyer-Readiness Stage
• Aware
• Ever tried
• Recent trial
• Occasional user
• Regular user
• Most often used
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- 18. Loyalty Status
Hard-core
Split loyals
Shifting loyals
Switchers
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- 19. Figure 8.3 Behavioral
Segmentation Breakdown
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-19
- 20. Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal
Characteristics
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-20
- 21. Steps in Segmentation Process
Needs-based segmentation
Segment identification Marketing-Mix
Segment attractiveness Strategy
Segment profitability
Segment positioning
Segment acid test
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- 23. Figure 8.4 Patterns of
Target Market Selection
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- 24. Figure 8.4 Patterns of
Target Market Selection
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-24
- 25. Figure 8.4 Patterns of
Target Market Selection
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-25
- 26. The Revolution
brand of ready-
made women’s
apparel
successfully
focuses on the
niche segment of
plus-size clothes.
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 8-26