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8

Identifying
Market Segments
and Targets

Marketing Management, 13th ed


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

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall


Fords Model T Followed a Mass
Market Approach

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Four levels of Micromarketing

Segments Niches

Local areas Individuals

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Niche Marketers

Enterprise Rent-A-Car
targets the insurance-
replacement market

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall


What is a Market Segment?

A market segment consists of a


group of customers who share a
similar set of needs ad wants.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall


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.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall


Segmenting Consumer Markets

Geographic
Geographic

Demographic
Demographic

Psychographic
Psychographic

Behavioral
Behavioral

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Demographic Segmentation

Age
Age and
and Life
Life Cycle
Cycle
Life
Life Stage
Stage
Gender
Gender
Income
Income
Generation
Generation
Social
Social Class
Class

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Behavioral Segmentation

Decision Roles Behavioral Variables


Initiator Occasions
Influencer Benefits
Decider User Status
Buyer Usage Rate
User Buyer-Readiness
Loyalty Status
Attitude
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Heavy and Light Users of Common
Consumer Products

PRODUCT (% USERS) HEAVY HALF LIGHT HALF


Soups and 75% 25%
detergents (94%)
Toilet tissue (95%) 71% 29%
Shampoo (94%) 79% 21%
Paper towels (90%) 75% 25%
Cake mix (74%) 83% 17%
Cola (67%) 83% 17%
Beer (41%) 87% 13%
Dog food (30%) 81% 19%
95% as Prentice Hall
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Bourbon (20%) 5%
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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Loyalty Status

Hard-core

Split loyals

Shifting loyals

Switchers

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Figure 8.3 Behavioral
Segmentation Breakdown

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Effective Segmentation Criteria

Measurable
Measurable

Substantial
Substantial

Accessible
Accessible

Differentiable
Differentiable

Actionable
Actionable

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Figure 8.4 Patterns of
Target Market Selection

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall


Figure 8.4 Patterns of
Target Market Selection

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall


Figure 8.4 Patterns of
Target Market Selection

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall