1. Chapter 8Identifying Market Segments and Selecting Target Markets May 8, 2010 Martin Anthony A. Villa, MD “V10- The Power Engine” Ateneo MBA-H Batch 8 <www.myvaricosevein.com>

2. In Conclusion…

3. The Clients…

4. Levels of Market Segment Segmenting Consumers CONCEPTS Effective Segmentation Criteria Patterns of Market Target Selection Segment to segment plan

5. Levels of Market Segmentation Mass marketing Segment marketing Niche marketing Local marketing Individual marketing

6. MASS MARKETING Mass production, mass distribution, and mass promotion of one product for all buyers. Levels of Market Segmentation

7. MASS MARKETING Mass production, mass distribution, and mass promotion of one product for all buyers. Levels of Market Segmentation

8. SEGMENT MARKETING Market segment: a group of customers who share a similar set of needs & wants. The marketer’s task: identify (NOT create) the segments and decide which one(s) to target. Levels of Market Segmentation

9. LOCAL MARKETING The marketing programs are tailored to the needs and wants of local customer groups. Grass root marketing for trading areas, neighborhood and individual stores Levels of Market Segmentation

10. NICHE MARKETING A more narrowly defined group seeking a distinctive mix of benefits. Determine the attractiveness of a niche Distinctness of need Premium Competitors Specialization Size, profit and growth potential The globalization and internet facilitates have made niche more feasible Levels of Market Segmentation

11. INDIVIDUAL MARKETING The ultimate level of segmentation Customerization One on one Levels of Market Segmentation

12. INDIVIDUAL MARKETING The ultimate level of segmentation Customerization One on one Levels of Market Segmentation

13. Segmenting Consumer Markets Geographic segmentation

14. Geographic segmentation Demographic segmentation Age and life cycle stage, life stage, generation Gender Income, social class, occupation Segmenting Consumer Markets

15. Geographic segmentation Demographic segmentation Psychographic segmentation Segmenting Consumer Markets

16. Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation Segmenting Consumer Markets

17. MARKET TARGETING 5 key criteria for a useful market segment Measurable The size, purchasing power and characteristics of the segments can be measured.

18. MARKET TARGETING 5 key criteria for a useful market segment Measurable Substantial The segment are large and profitable enough to serve. The objective is to have the largest homogenous group.

19. MARKET TARGETING 5 key criteria for a useful market segment Measurable Substantial Accessible The segment must be effectively reached and served.

20. MARKET TARGETING 5 key criteria for a useful market segment Measurable Substantial Accessible Differentiable Segment are conceptually distinguishable and respond differently. If not they should not be segmented.

21. MARKET TARGETING 5 key criteria for a useful market segment Measurable Substantial Accessible Differentiable Actionable Effective program can be formulated to attract and serve the segment.

22. Patterns of Target Market Selection Single Segment Concentration M1 M2 M3 MARKET P1 PRODUCT P2 P3

23. Patterns of Target Market Selection Selective specialization M1 M2 M3 MARKET P1 PRODUCT P2 P3

24. Patterns of Target Market Selection Product Specialization M1 M2 M3 MARKET P1 PRODUCT P2 P3

25. Patterns of Target Market Selection Market Specialization M1 M2 M3 MARKET P1 PRODUCT P2 P3

26. Patterns of Target Market Selection Full Market Coverage M1 M2 M3 MARKET P1 PRODUCT P2 P3

27. Patterns of Target Market Selection Marketing must develop segment to segment invasion plans and choose target market in a socially responsible manner at all times. M1 M2 M3 MARKET P1 PRODUCT P2 P3

28. Patterns of Target Market Selection Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

29. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

30. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

31. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

32. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

33. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

34. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

35. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

36. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

37. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

38. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

39. Segment to Segment Plan Middle age Female Elderly Female Young Teen Female MARKET Mammography Pap smear HPV Vaccine PRODUCT

40. CONCLUSION: … the customers is a very heterogenous crowd. … there is a need to re cluster them into smaller homogenous group …this is a focus target group in marketing strategic planning for particular product.

41. Chapter 8Identifying Market Segments and Selecting Target Markets May 8, 2010 Martin Anthony A. Villa, MD “V10- The Power Engine” Ateneo MBA-H Batch 8 <www.myvaricosevein.com>

42. Target Marketing 3 activities: Market Segmentation Market Targeting Market Positioning

43. Steps in Segmentation Process Need based segmentation Similar needs and benefits Segment identification In relation to demographics, lifestyle and behavior Segment attractiveness Segment profitability Segment positioning Segment acid test Market mix strategy