Objectives
Objectives
Objectives
Objectives
Identifying Market Segments
Identifying Market Segments
Steps in Market Segmentation,
Steps in Market Segmentation,
Targeting,and Positioning
Targeting,and Positioning
Steps in Market Segmentation,
Steps in Market Segmentation,
Targeting,and Positioning
Targeting,and Positioning
1. Identify
segmentation
variables and
segment the
market
2. Develop
profiles of
resulting
segments
Market
Market
Segmentation
Segmentation
3. Evaluate
attractiveness
of each
segment
4. Select the
target
segment(s)
Market
Market
Targeting
Targeting
5. Identify
possible
positioning
concepts for
each target
segment
Market-Segmentation
Market-Segmentation
Procedure
Procedure
Market-Segmentation
Market-Segmentation
Procedure
Procedure
Survey
Survey
Motivations
Motivations
Attitudes
Attitudes
Behavior
Behavior
Analysis
Analysis
Bases for Segmenting
Bases for Segmenting
Consumer Markets
Consumer Markets
Bases for Segmenting
Bases for Segmenting
Consumer Markets
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
Bases for Segmenting
Bases for Segmenting
Business Markets
Business Markets
Bases for Segmenting
Bases for Segmenting
Business Markets
Business Markets
Demographic
Demographic
Operating Variables
Operating Variables
Purchasing Approaches
Purchasing Approaches
Situational Factors
Situational Factors
Measurable
Measurable
Accessible
Accessible
Substantial
Substantial
Differential
Differential
• Segments must be large or profitable enough to serve.
• Segments can be
effectively reached and served.
Actionable
Actionable
• Size, purchasing power, profiles of segments can be measured.
• Segments must respond differently to different marketing mix elements & actions.
• Must be able to attract and serve the segments.
Effective Segmentation
Heavy and Light Users of
Heavy and Light Users of
Common Consumer Products
Common Consumer Products
Heavy and Light Users of
Heavy and Light Users of
Common Consumer Products
Common Consumer Products
HEAVY HALF
HEAVY HALF
LIGHT HALF
LIGHT HALF
PRODUCT (% USERS)
PRODUCT (% USERS)
75%
71%
Soups and
Soups and
detergents (94%)
detergents (94%)
25%
29%
79%
21%
Toilet tissue (95%)
Toilet tissue (95%)
Shampoo (94%)
Shampoo (94%)
75%
25%
17%
17%
Paper towels (90%)
Paper towels (90%)
Cake mix (74%)
Cake mix (74%)
Cola (67%)
Cola (67%)
83%
83%
13%
5
%
87%
19%
Beer (41%)
Beer (41%)
Dog food (30%)
Dog food (30%)
81%
Additional Segmentation
Additional Segmentation
Criteria
Criteria
Additional Segmentation
Additional Segmentation
Criteria
Criteria
Ethical Choice of Market Targets
Ethical Choice of Market Targets
Segment Interrelationships &
Segment Interrelationships &
Supersegments
Supersegments
Segment-by-Segment Invasion Plans
Segment-by-Segment Invasion Plans
Five Patterns of Target Market
Five Patterns of Target Market
Selection
Selection
Five Patterns of Target Market
Five Patterns of Target Market
Selection
Selection
Single-segment
Single-segment
concentration
concentration
specialization
specialization
Product
Product
M1 M2 M3
P1
P2
P3
Selective
Selective
specialization
specialization
M1 M2 M3
P1
P2
P3
M1 M2 M3
Full market
Full market
coverage
coverage
P1
P2
P3
Market
Market
specialization
specialization
M1 M2 M3
P1
P2
P3
P1
P2
P3
M1 M2 M3
P = Product
P = Product
M = Market
Segment-by-Segment
Segment-by-Segment
Invasion Plan
Invasion Plan
Segment-by-Segment
Segment-by-Segment
Invasion Plan
Invasion Plan
Customer Groups
Customer Groups
Truckers
Truckers
Railroads
Railroads
Airlines
Airlines
Large
Large
computers
computers
P
ro
d
u
c
t
V
a
ri
e
ti
e
s
P
ro
d
u
c
t
V
a
ri
e
ti
e
s
Personal
Personal
computers
computers
Mid-size
Mid-size
computers
computers
Company B
Company B
Company C
Company C
Company A
Review
Review
Review
Review
Identifying Market Segments
Identifying Market Segments
