Identifying Market

Segments and Targets

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.

8-2
Four Levels of Micromarketing
 Segments
 Niches
 Local areas
 Individuals

8-3
Segment Marketing

Targeting a group of customers

who share a similar set of
needs and wants.

8-4
Flexible Marketing Offerings

 Naked solutionoptions
Discretionary
 Some
Product
segment
and service
members
elements
valuethat all
 segment members
Options may value
carry additional charges

8-5
The Experience Economy
 Experience
 Services
 Goods
 Commodity

8-6
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.

8-7
Segmenting Consumer Markets
 Geographic
 Demographic
 Psychographic
 Behavioral

8-8
Demographic Segmentation
 Age and Life Cycle
 Life Stage
 Gender
 Income
 Generation
 Social Class

8-9
Behavioral Segmentation
 Behavioral
Decision Roles
Variables
 Occasions
Initiator
 Benefits
Influencer
 User
DeciderStatus
 Usage
Buyer Rate
 Buyer-Readiness
User
 Loyalty Status
 Attitude
8-10
Segmenting for Business Markets

 Demographic
 Operating Variable
 Purchasing Approaches
 Situational Factors
 Personal Characteristics

8-11
Steps in Segmentation Process
 Needs-based segmentation
 Segment identification
 Segment attractiveness
 Segment profitability
 Segment positioning
 Segment acid test
 Marketing mix strategy

8-12
Effective Segmentation Criteria

 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable

8-13
Chapter Questions
 What are the different levels of market
segmentation?
 How can a company divide a market into
segments?
 How should a company choose the most
attractive target markets?
 What are the requirements for effective
segmentation?

8-14