Designing customer –

driven marketing strategy

MARKET SEGMENTATION

Definition:

The process of Major

dividing the total segmentation
market into smaller variables:
segments of buyers
with distinct needs, + Geographic
characteristics, or + Demographic
behaviors that might + Psychographic
require separate + Behavioral
marketing strategies
or mixes
MARKET SEGMENTATION
MARKET TARGETING

Definition:

The process of
evaluating each
market segment’s
attractiveness and
selecting one or more
segments to enter
 MARKET TARGETING
 Evaluating market segments based on 3 factors:

+ Segment size & growth  the segment is large, or small,

fast-growing, competitive, or less attractive

+ Segment structural attractiveness  if the segment

consist of many competitors, or if it is easy for new entrants to
come into, or if it contains potential substitute products or strong
buyers’ or supplier’s power

+ The company objectives & resources  the segment

must mesh with the firm’s long – term objectives and the company
must have skills & resources to succeed in that segment
 MARKET TARGETING
 Selecting target market segments can be carried out at
different levels, including:

+ Undifferentiated (mass) marketing  a market –

coverage strategy in which a firm decides to ignore market
segment differences & go after the whole market with one offer
 MARKET TARGETING
+ Differentiated marketing  a market – coverage
strategy in which a firm decides to target several market
segments and design separate offers for each
 MARKET TARGETING
+ Concentrated or niche marketing  a market –
coverage strategy in which a firm goes after a large share of one
or a few segments or niches
MARKET TARGETING
+ Micromarketing
DIFFERENTIATION
DIFFERENTIATION &
POSITIONING