Market SegmentationMarket Segmentation

(chapter 5)

Market Segmentation Market Segmentation ProcessProcess

Decide segmentation strategyDecide segmentation strategy

Develop product positioningDevelop product positioning

Divide markets on relevant dimensionsDivide markets on relevant dimensions

Determine consumer needs and wantsDetermine consumer needs and wants

Delineate firm’s current situationDelineate firm’s current situation

Design marketing mix strategyDesign marketing mix strategy

Identifying Relevant Identifying Relevant DimensionsDimensions

A Priori/Post HocA Priori/Post Hoc Useful basesUseful bases

geographicgeographic demographicdemographic socialsocial behaviorbehavior thoughts & feelingsthoughts & feelings multivariatemultivariate

Benefit segmentationBenefit segmentation toothpaste markettoothpaste market

sensorysensory sociablesociable worrierworrier independentindependent

Identifying Relevant Identifying Relevant DimensionsDimensions

PsychographicPsychographic the basic approachthe basic approach VALS 2 VALS 2 TMTM

the dimensionsthe dimensions resourcesresources self-orientationsself-orientations

the descriptionsthe descriptions

GeodemographicGeodemographic PRIZMPRIZM

orientedoriented Status oriented ActionPrinciple

Minimal resources

Abundant resources

Figure 5-4

Actualizers

Makers

Strugglers

Strivers

Experiencers Achivers Fulfilleds

Believers

PositioningPositioning

Traditional Sporty

Luxurious

Functional

Cadillac •

• Mercedes

Lincoln •

Oldsmobile • •Chrysler • Buick

Ford •

Plymouth •

Dodge •

Mercury •

•Pontiac

•BMW •Porsche

•Lexus

•Chevrolet •Nissan

•Toyota

•Saturn

•VW

Figure 5-6

Segmentation StrategySegmentation Strategy

Not to enterNot to enter Mass marketMass market

too smalltoo small heavy usersheavy users dominancedominance

One segmentOne segment Several segmentsSeveral segments

Segmentation criteriaSegmentation criteria measurablemeasurable meaningfulmeaningful marketablemarketable

Design Marketing Design Marketing Mix StrategyMix Strategy