figure 9-1 figure 9-1 market segmentation—linking market needs to an organization’s marketing...
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FIGURE 9-1FIGURE 9-1 Market segmentation—linking market needs to an organization’s marketing program
WHY SEGMENT MARKETS?
• What Market Segmentation Means
How Reebok’s Segmentation Strategy Developed
Using Market-Product Grids
FIGURE 9-2FIGURE 9-2 Market-product grid showing how different Reebok shoes reach segments of customers with different needs
FIGURE 9-3FIGURE 9-3 The five key steps in segmenting and targeting markets link market needs of customers to the organization’s marketing program
STEPS IN SEGMENTING AND TARGETING MARKETS
• Step 1: Group Potential Buyers into Segments
• Potential for Increased Profit
Criteria to Use in Forming the Segments
• Similarity of Needs of Buyers within a Segment
• Simplicity and Cost of Assigning Buyers to Segments
• Difference of Needs of Buyers Among Segments
• Potential of a Marketing Action to Reach a Segment
STEPS IN SEGMENTING AND TARGETING MARKETS
• Step 1: Group Potential Buyers into Segments
Ways to Segment Consumer Markets
• Customer Characteristics
Geographic: Region
Demographic: Household
Psychographic: Lifestyle
STEPS IN SEGMENTING AND TARGETING MARKETS
• Step 1: Group Potential Buyers into Segments
Ways to Segment Consumer Markets
• Buying Situations
• Frequency Marketing
• 80/20 Rule
Benefits Sought: Product Features
Usage/Patronage: Usage Rate
FIGURE 9-B FIGURE 9-B Segmentation variables and breakdowns for U.S. consumer markets
FIGURE 9-C FIGURE 9-C Patronage of fast-food restaurants by adults 18 years and older: Simmons Market Research Bureau NCS/NHCS Spring 2004 Adult Full-Year Choices System Crosstabulation Report
STEPS IN SEGMENTING AND TARGETING MARKETS
• Step 1: Group Potential Buyers into Segments
Variables to use in Forming Segments
• Students in Dorms
• Students in Apartments
• Day Commuters
• Night Commuters
• Faculty/Staff
• People Living in Area
• People Working in Area
STEPS IN SEGMENTING AND TARGETING MARKETS
• Step 2: Group Products to be Soldinto Categories
• Step 3: Develop a Market-Product Grid and Estimate Size of Markets
FIGURE 9-5FIGURE 9-5 Selecting a target market for your Wendy’s fast-food restaurant next to an urban university (target market is shaded)
STEPS IN SEGMENTING AND TARGETING MARKETS
• Step 4: Select Target Markets
Criteria to Use in Picking the Target Segments
• Market Size
• Expected Growth
• Cost of Reaching Segment
• Compatibility with theOrganization’s Objectivesand Resources• Competitive Position
Choose the Segments
STEPS IN SEGMENTING AND TARGETING MARKETS
Your Wendy’s Segmentation Strategy
• Day Commuters
• Between-Meal Snacks
• Dinner to Night Students
• Step 5: Take Marketing Actions to Reach Target Markets
Wendy’s How can Wendy’s target different market
segments with different advertising programs?
FIGURE 9-6 FIGURE 9-6 Advertising actions to reach specific student segments