1. How to Identify
Market Segments
and Targets

2. Levels of Market Segmentation

Mass marketing

Micromarketing
− Segment marketing
− Niche marketing
− Local marketing
− Individual customer
marketing

3. Patterns of Market
SegmentationHomogeneous preferences
Diffused preferences
Clustered preferences

4. Market Segmentation Procedure
1. Needs-Based Segmentation
2. Segmentation Identification
3. Segment Attractivenss
4. Segment Profitability
5. Segment Positioning
6.Segment “Acid Test”
7.Marketing-Mix Strategy

5. Effective Segmentation

Measurable

Substantial

Accessible

Differentiable

Actionable

6. Bases forSegmenting
ConsumerMarkets

Geographic segmentation

Demographic segmentation
− Age and life-cycle stage
− Life stage
− Gender
− Income
− Generation
− Social class

7. 
Psychographic segmentation
− Lifestyle
− Personality
− Values

Behavioral segmentation
− Occasions - Benefits
− User status - Usage rate
− Loyalty status - Buyer-Readiness stage
− Attitude
Bases forSegmenting
ConsumerMarkets
Bases forSegmenting
ConsumerMarkets

8. 
Demographic

Operating variables

Purchasing approaches

Situational factors

Personal characteristics
Bases forSegmenting
Business Markets

9. Market Targeting

Evaluating & Selecting the Market
Segments
− Single-Segment Concentration
− Selective Specialization
− Product Specialization
− Market Specialization
− Full Market Coverage

Undifferentiated marketing

Differentiated marketing

10. 
Differentiated Marketing
− Product modification costs
− Manufacturing costs
− Administrative costs
− Inventory costs
− Promotion costs

11. Additional Considerations

Ethical choice of market targets

Segment interrelationships and
supersegments

Segment-by-segment invasion plans

Intersegment cooperation