Segmentation & target marketing
The document discusses market segmentation, targeting, and positioning strategies. It outlines several key points: 1) Market segmentation involves dividing the market into subgroups based on variables like geography, demographics, psychographics, and behavior. This allows companies to better target specific customer groups. 2) Common segmentation variables include geographic location, demographics like age and income, psychographic factors like lifestyle and personality, and behavioral factors like usage patterns and brand loyalty. 3) Effective segmentation defines groups that are measurable, accessible, substantial, differentiable, and actionable for companies to design tailored marketing programs. This allows companies to more precisely target customer segments.
Segmentation & target marketing
- 1. Segmentation & Target Marketing Soma Giri Disclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons
- 2. – Summarise the relationship between market segmentation, targeting and positioning – Identify and describe the major variables for consumer segmentation – Outline how companies select target markets and implement segmentation strategies – Show how market segmentation and the marketing mix are interlinked in the positioning strategy
- 3. • Segmentation Variables – Geographic – Demographic – Psychographic – Behavioral – Other (anything!) • No single best way to segment a market. • Often best to combine variables and identify smaller, better-defined target groups.
- 4. Demographic • Use Differences in: – age, gender, family size, family life cycle, income, occupation, education, race, and religion – Most frequently used segmentation variable • Ease of measurement and high availability – Usually the worst variable to use. Psychographic Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic classification often have very different lifestyles and personalities.
- 5. Behavioral • Occasion • Loyalty Status – Special promotions & labels for holidays. Nonusers, ex-users, potential users, first-time users, regular – Special products for special occasions. users • Benefits Sought • Usage Rate – Different segments desire different Light, medium, heavy. benefits from the same products Loyalty Status H Split loyals Shifting loyals Switchers
- 6. User & Loyalty Status Target Market Unaware Aware Not Tried Tried Negative Favorable Not yet Neutral Rejector Repeated Option option repeated Loyal to Loyal to Switcher other brand brand Regular Light User Heavy User User
- 7. Effective Segmentation Measurable • Size, purchasing power, profiles of segments can be measured Accessible • Segments can be effectively reached and served Substantial • Segments are large or profitable enough to serve Differentiable • Segments must respond differently to different marketing mix elements & programs Actionable • Effective programs can be designed to attract and serve the segments
- 8. Targeting Segments Undifferentiated Differentiated Concentrated Micromarketing Marketing Marketing Marketing • Mass • Segmented • Niche • Local or Marketing Marketing individual Marketing Target Narrowly Target Broadly
- 9. Targeting Market Selection Product x Market Matrices
- 10. Classic