Kotler08_media.ppt 3889KB Aug 31 2008 10:10:18 PM

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MARKETING MANAGEMENT

12th_edition

8 Identifying Market

Segments and

Targets

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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?

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Mature

consumers

are a rapidly

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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.

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Four levels of Micromarketing

Segments

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Segment Marketing

Targeting a group of customers who share a similar set of

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Flexible Marketing Offerings

• Naked solution

– Product and service elements that all

segment members value

• Discretionary options – Some segment

members value

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Niche Marketers

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The Experience Economy

Commodity Goods

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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

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Segmenting Consumer Markets

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Demographic Segmentation

Age and Life Cycle Age and Life Cycle

Life Stage Life Stage

Gender

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Figure 8.3

Profiling American Generations

• GI Generation – 1901-1924

• Silent Generation – 1925-1945

• Baby Boomers – 1946-1964

• Generation X – 1965-1977 • Generation Y

– 1978-1994 • Millenials

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Figure 8.4

The VALS

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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

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Loyalty Status

Switchers Shifting loyals

Split loyals

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The Conversion Model

Convertible Shallow Average Entrenched

Strongly

unavailable Ambivalent Available Weakly

unavailable

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Figure 8.5 Behavioral

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Segmenting for Business Markets

Demographic Demographic

Operating Variable Operating Variable

Purchasing Approaches Purchasing Approaches

Situational Factors Situational Factors

Personal

Characteristics Personal

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BB&T Bank’s

B-to-B

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Models of Sequential Segmentation

Stage of decision

• First-time prospects • Novices

• Sophisticates

Orientation

• Price-oriented

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Steps in Segmentation Process

Needs-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

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Effective Segmentation Criteria

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Marketing Debate

 _{Is mass marketing dead?}

Take a position:

1. Mass marketing is dead.

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Marketing Discussion

 _{How would you classify yourself in}