nyl jarem amoroso ch 8

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Identifying Market Segments and Targets

Select and Connect

Chapter 8…

The 4iApproach

In Action

Nyl Jarem P. Amoroso

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Why segment the market?

• Companies cannot connect to all customers

• To focus on consumers that they have the greatest chance of satisfying

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Concept 1

Market Segmentation(p.212)

Kotler: Club Med – catering to young couples, adventure seekers

Local: Cebu Pac – catering to “budget” commuters

RP medical application: Different specializations – catering to

specialized needs

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• Descriptive Characteristics– Geographic, demographic, psychographic

• Behavioral Considerations– Consumer responses to benefits, usage

ocassions, or brands

*Regardless of which type of segmentation scheme, the key is adjusting marketing program to recognize customer differences.

Bases for Market Segmentation

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Segmentation: Descriptive Characteristics

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Concept 2

Bases for segmenting: Geographic Segmentation (Grassroots Marketing) (p.213)

Kotler: Citibank – provides different services depending on neighborhood demographics

Local: Puregold – puts up Puregold Jr. to smaller communities

RP medical application:Community Doctors – customizing health concepts appropriate to their community

Or TMC Sattelite Centers (catering to different geographical locations

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Concept 3

Bases for segmenting: Demographic Segmentation (p.216)

Kotler: Colgate – offering toothpaste for kids and adult

Local: Bench – HerbenchRP medical application:

TMC Execcutive Packages – for Men and Women

Hospitals – Charity and Paying Wards

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Concept 4

Demographic Segmentation: Income “Trading up, down and over” p.218

Kotler: Mercedes Benz C – Class – entry level (relatively cheaper) Merc

Local: Toyota 86 – “affordable” sports carRP medical application:

Patients preferring tertiary hospitals

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Concept 5

Demographic Segmentation: Generation - Gen Y (WIRED GENERATION) (p.220)

Kotler: Product Placements in Videogames (Mountain Dew in Pro Skater 3)

Local: Lazada/Kimstore – online sellingRP medical application:

Doctors using different media to communicate to their patients.

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Concept 6

Psychographic Segmentation (p.213)

Kotler: Canadian Airports - ActualizersLocal: BDO – “We find ways” targeting

young professionals who are “Achievers”

RP medical application:Minimal Invasive Surgeries – for successful people “Achievers”

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Segmentation: Behavioural Characteristics

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Concept 7

Behavioural Segmentation: Decision Roles (p.227)

Kotler: ICI – Selling paints to wife Local: Safeguard – targeting mothersRP medical application:

Doctors – Identifying Gatekeepers (Moms) to improve patient compliance

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Concept 8

Behavioural Segmentation: Usage Rate (p.228)

Kotler: Heavy DrinkersLocal: Puregold – Aling Puring Card (for

Store owners who buys in bulks)RP medical application:

Maximizing Health Card holders

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Market TargetingOnce the firm has identified its market-segment

opportunities… it must decide how many and which ones to target

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Concept 9

Full Market Coverage: Undifferentiated (p.238)

Kotler: Henry Ford: Model T to all customers

Local: Jollibee Commercials – applicable to all consumers

RP medical application:Doctors encouraging patients “if

symptoms persists consult your doctor”

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Concept 10

Full Market Coverage: Differentiated (p.233)

Kotler: Estee Lauder: Estee Lauder (Old Consumers), Clinique (Middle-aged), M.A.C (youth)

Local: Honda – CR-V (moms), Civic (Dad), Jazz (College Kids)

RP medical application:Different Patients, catered by appropriate

Specializations

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Concept 11

Single-segment Concentration: Niche Marketing, “Customerization” (p.234)

Kotler: PorscheLocal: Project Pie – where you can

customize your pieRP medical application:“Patient are Partners”:Emphasis on

Autonomy in the Medical Field, Personalized Medicine

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• To better compete you may need to segment your market.

• Bases of segmentation base on consumer characteristic and consumer response.

• You can target all of your segments, or like a lot of companies now; you may opt for a more individualized marketing strategy.

Summary