Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices.

Problem: How to appeal to all buyers in the marketplace, or at least not to all buyers in the same way? Solution: By designing a Customer Driven Marketing Strategy.

SELECT CUSTOMERS TO SERVE SEGMENTATION Divide the total market into smaller segments.

DECIDE ON A VALUE PROPOSITION DIFFERENTIATION Differentiate the market offering to create superior customer value.

CREATE VALUE FOR TARGETED CUSTOMERS

TARGETING Select the segment or segments to enter.

POSITIONING Position the market offering in the minds of target customers.

Dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.

Segmenting Consumer Markets. Segmenting Business Markets. Segmenting International Markets. Requirements for effective segmentation.

 Geographic Segmentation : nations, states, regions, etc.

Demographic Segmentation : age, gender, education, etc. Psychographic Segmentation : social class, lifestyle, etc. Behavioral Segmentation : occasions, benefits, attitude, etc.

Buying Behavior : Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.

Benefits : Dividing the market into groups according to the different benefits that consumers seek from the product.

 Geographic Location. Economic Factors. Political and Legal Factors. Cultural Factors.

Intermarket Segmentation : Forming segments of consumers who have similar needs and buying behavior.

 Market segments must be measurable.

Market segments must be accessible.

Market segments must be substantial.

Market segments must be differentiable.

Market segments must be actionable.

Target Market : A set of buyers sharing common needs or characteristics that the company decides to serve.
Market targeting involves : Evaluating market segments. Selecting target market segments. Socially responsible target marketing.

 Segment size and growth : collect and analyze data on current position. Segment structural attractiveness : examine factors that affect longrun segment attractiveness like competitors. Company objectives and resources : company must consider it.

Undifferentiating

Targeting broadly

Differentiated

Concentrated

Micromarketing Fig. Marketing Targeting Strategies

Targeting narrowly