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MARKETING MANAGEMENT


          Identifying Market
       Segments and Targets
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?

                                          8-2
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.

                                         8-3
Four Levels of Micromarketing
 Segments
 Niches
 Local areas
 Individuals




                                8-4
Segment Marketing



    Targeting a group of customers
      who share a similar set of
           needs and wants.



                                     8-5
Flexible Marketing Offerings

 Naked solution       Discretionary options
   Product and          Some segment
   service elements     members value
   that all segment     Options may carry
   members value        additional charges




                                          8-6
The Experience Economy
 Experience
 Services
 Goods
 Commodity




                         8-7
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.


                                       8-8
Business Buying Behaviour
Buying Decision Process
  Buying Process the decision-making process by 'which
  business buyers establish the need/or purchased products
  and services, and identify, evaluate and, choose among
  alternative brands and suppliers.
Segmenting Consumer Markets
 Geographic
 Demographic
 Psychographic
 Behavioral




                          8-11
Factors influencing the Buying Behaviour
Demographic Segmentation
 Age and Life Cycle
 Life Stage
 Gender
 Income
 Generation
 Social Class


                           8-13
Figure 8.3
Profiling American Generations
 GI Generation       Generation X
   1901-1924           1965-1977
 Silent Generation   Generation Y
   1925-1945           1978-1994
 Baby Boomers        Millenials
   1946-1964           1995-2002




                                    8-14
Behavioral Segmentation
 Decision Roles   Behavioral Variables
 Initiator        Occasions
 Influencer       Benefits
 Decider          User Status
 Buyer            Usage Rate
 User             Buyer-Readiness
                  Loyalty Status
                  Attitude
                                     8-15
Segmenting for Business Markets

 Demographic
 Operating Variable
 Purchasing Approaches
 Situational Factors
 Personal Characteristics



                                  8-16
Models of Sequential Segmentation


 Stage of decision      Orientation
 First-time prospects   Price-oriented
 Novices                Solution-oriented
 Sophisticates          Strategic-value




                                            8-17
Steps in Segmentation Process

 Needs-based segmentation
 Segment identification
 Segment attractiveness
 Segment profitability
 Segment positioning
 Segment acid test
 Marketing mix strategy

                                8-18
Effective Segmentation Criteria

 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable



                                  8-19

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Markering 2

  • 1. MARKETING MANAGEMENT Identifying Market Segments and Targets
  • 2. 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? 8-2
  • 3. 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. 8-3
  • 4. Four Levels of Micromarketing Segments Niches Local areas Individuals 8-4
  • 5. Segment Marketing Targeting a group of customers who share a similar set of needs and wants. 8-5
  • 6. Flexible Marketing Offerings Naked solution Discretionary options Product and Some segment service elements members value that all segment Options may carry members value additional charges 8-6
  • 7. The Experience Economy Experience Services Goods Commodity 8-7
  • 8. 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. 8-8
  • 10. Buying Decision Process Buying Process the decision-making process by 'which business buyers establish the need/or purchased products and services, and identify, evaluate and, choose among alternative brands and suppliers.
  • 11. Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral 8-11
  • 12. Factors influencing the Buying Behaviour
  • 13. Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class 8-13
  • 14. Figure 8.3 Profiling American Generations GI Generation Generation X 1901-1924 1965-1977 Silent Generation Generation Y 1925-1945 1978-1994 Baby Boomers Millenials 1946-1964 1995-2002 8-14
  • 15. Behavioral Segmentation Decision Roles Behavioral Variables Initiator Occasions Influencer Benefits Decider User Status Buyer Usage Rate User Buyer-Readiness Loyalty Status Attitude 8-15
  • 16. Segmenting for Business Markets Demographic Operating Variable Purchasing Approaches Situational Factors Personal Characteristics 8-16
  • 17. Models of Sequential Segmentation Stage of decision Orientation First-time prospects Price-oriented Novices Solution-oriented Sophisticates Strategic-value 8-17
  • 18. Steps in Segmentation Process Needs-based segmentation Segment identification Segment attractiveness Segment profitability Segment positioning Segment acid test Marketing mix strategy 8-18
  • 19. Effective Segmentation Criteria Measurable Substantial Accessible Differentiable Actionable 8-19