IDENTIFYING MARKET SEGMENTS & TARGETS

Presented by Sony Kusumasondjaja, SE., MCom.

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MASS MARKETING
The seller engages in mass production, mass distribution, and mass promotion of one product for all buyers It creates the largest potential market, which leads to lowest cost and lower price or higher margin It is difficult now to target mass target or mass audience

LEVELS OF MICROMARKETING
SEGMENT MARKETING NICHE MARKETING LOCAL MARKETING INDIVIDUAL MARKETING

SEGMENT MARKETING
Market segment consists of a group of customers who share similar set of needs and wants The marketers do not create segments, they identify the segments and decide which one(s) to target The marketers can better design, price, disclose, and deliver the product to satisfy the target market

PATTERNS OF PREFERENCE SEGMENTS

HOMOGENEOUS PREFERENCE DIFFUSED PREFERENCE CLUSTERED PREFERENCE

NICHE MARKETING
A more narrowly defined customer group seeking a distinctive mix of benefits The niche customers have a distinct set of needs, will pay premium price to the firm, is not likely to attract competitors

CUSTOMIZATION

Today customers are taking more individual initiative in determining what and how to buy It empowers customers to design products of their own choice Customization is not for every company
It can raise costs more than the customers will pay Some customers do not know what they want until they see the actual product

SEGMENTING CONSUMER MARKET

GEOGRAPHIC SEGMENTATION DEMOGRAPHIC SEGMENTATION PSYHOGRAPHIC SEGMENTATION BEHAVIORAL SEGMENTATION

SEGMENTATION FOR CONSUMER MARKETS

SEGMENTING BUSINESS MARKETS

DEMOGRAPHIC SEGMENTATION OPERATING VARIABLES PURCHASING APPROACHES SITUATIONAL FACTORS PERSONAL CHARACTERISTICS

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STEPS IN SEGMENTATION

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TARGET MARKET SELECTION

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