How to Identify

Market

Segments

and Targets

Levels of Market

Segmentation Mass marketing Micromarketing

Segment marketing Niche marketing Local marketing Individual customer

marketing

Patterns of Market

SegmentationHomogeneous preferences

Diffused preferences

Clustered preferences

Market Segmentation

Procedure1. Needs-Based Segmentation

2. Segmentation Identification

3. Segment Attractivenss

4. Segment Profitability

5. Segment Positioning

6.Segment “Acid Test”

7.Marketing-Mix Strategy

Effective Segmentation Measurable Substantial Accessible Differentiable Actionable

Bases for Segmenting

Consumer Markets Geographic segmentation Demographic segmentation

Age and life-cycle stage Life stage Gender Income Generation Social class

Psychographic segmentation Lifestyle Personality Values

Behavioral segmentation Occasions - Benefits User status - Usage rate Loyalty status - Buyer-Readiness stage Attitude

Bases for Segmenting

Consumer Markets

Bases for Segmenting

Consumer Markets

Demographic Operating variables Purchasing approaches Situational factors Personal characteristics

Bases for Segmenting

Business Markets

Market Targeting Evaluating & Selecting the Market

Segments Single-Segment Concentration Selective Specialization Product Specialization Market Specialization Full Market Coverage

Undifferentiated marketing Differentiated marketing

Differentiated Marketing Product modification costs Manufacturing costs Administrative costs Inventory costs Promotion costs

Additional

Considerations Ethical choice of market targets Segment interrelationships and

supersegments Segment-by-segment invasion plans Intersegment cooperation