bmgt 411 chapter_7
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bmgt 411 marketing management fall 2014 chris lovettTRANSCRIPT
BMGT 411: Chapter 7
Identifying Market Segments and Targets
http://youtu.be/I_cW1QW4Aig Who is the Target Segment?
http://youtu.be/kBFFVzOCx8c Who is the Target Segment?
http://youtu.be/MWsP2aiBC14 Who is the Target Segment?
Chapter Questions
• In what ways can a company divide a consumer or business market into segments?
• How should a company choose the most attractive target markets?
• What are the different levels of market segmentation?
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
Segmenting, Targeting, and Positioning (STP)
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
Demographic Segmentation
• Age and life cycle
• Life stage
• Gender
• Income
• Generation
• Social class
• Race and Culture
Demographic Cohorts
Gen Y Cohort Analysis
Be Careful Not to be too explicit in marketing…..
http://thecolbertreport.cc.com/videos/regxdh/millennial-generation-soup-campaign
AARP What demographic segment is most important?
LululemonWhat demographic segment is most important?
Mercedes BenzWhat demographic segment is most important?
Psychographic Segmentation
and The VALS Framework
http://www.strategicbusinessinsights.com/vals/ustypes.shtml
Behavioral Segmentation Based on Needs and Benefits
Initiator
Influencer
Decider
Buyer
User
Behavioral Segmentation: Behavioral Variables
1.Occasions: Time of day, week, month, year, or other defined time in a consumers life
• Ex: Sheetz Breakfast
2.User Status: Non users, ex users, potential users, first time users, regular users
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Behavioral Segmentation: Behavioral Variables
3.Usage Rate: Light, Medium, and Heavy Product Users
4.Buyer Readiness Stage: Unaware, aware, informed, interested, desire, and intention to buy
5.Loyalty:
• Hard Core Loyal's: Always buy one brand
• Split Loyal's: Loyal to two or three brands
• Shifting Loyal's: Shift from one brand to another
• Switchers: Not loyal to any brand
Behavioral Segmentation: Behavioral Variables
• Hard Core Loyal Examples:
• Split Loyal's Example:
• Shifting Loyal Examples:
• Switchers Examples:
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• Enthusiastic Brands
• Positive Brands
• Indifferent Brands
• Negative Brands
• Hostile Brands
Effective Segmentation Criteria
• Measurable: The size, purchasing power, and characteristics of the segment can be measured
• Substantial: A segment is large and profitable enough to serve
• Accessible: The segments can be effectively reached and served
• Differentiable: Distinguishable and respond differently to different marketing mix elements
• Actionable: Affective programs can be developed for attracting and serving these segments
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 7.3 Possible Levels of Segmentation