Kotler mm 14e 08 ippt

8
Identifying Market
Segments and Targets
1

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2
Chapter Questions

What are the different levels of market
segmentation?

How can a company divide a market into
segments?

What are the requirements for effective
segmentation?

How should business markets be segmented?

How should a company choose the most
attractive target markets?

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

What is a Market Segment?
A market segment consists of a group
of customers who share a similar set of
needs and wants.

Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral

Geographic Segmentation

Claritas’ Prizm

Education and affluence

Family life cycle

Urbanization

Race and ethnicity

Mobility

Demographic Segmentation

Age and life cycle

Life stage

Gender

Income

Generation

Social class

Race and Culture

Age and Lifecycle Stage

Gender and Income

Generational Influences

Race and Culture

Psychographic Segmentation
and The VALS Framework

Behavioral Segmentation Based
on Needs and Benefits

Behavioral Segmentation:
Decision Roles
Initiator
Influencer
Decider
Buyer
User

Behavioral Segmentation:
Behavioral Variables

Occasions

Benefits

User Status

Usage Rate

Buyer-Readiness

Loyalty Status

Attitude

Figure 8.2 Example of a Brand Funnel

Loyalty Status

Hard-core

Split loyals

Shifting loyals

Switchers

Figure 8.3 Behavioral
Segmentation Breakdown

Segmenting for Business Markets

Demographic

Operating variable

Purchasing approaches

Situational factors

Personal characteristics

Steps in Segmentation Process

Need-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

Market mix strategy

Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

Porter’s 5 Forces Model
Threat of Rivalry
Threat of Supplier
Bargaining Power
Threat of Buyer
Bargaining Power
Threat of
New Entrants
Threat of
Substitutes

Figure 8.4 Possible Levels
of Segmentation

For Review

What are the different levels of market
segmentation?

How can a company divide a market into
segments?

What are the requirements for effective
segmentation?

How should business markets be segmented?

How should a company choose the most
attractive target markets?

Kotler mm 14e 08 ippt

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Kotler mm 14e 08 ippt