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Identifying Market Segments and Selecting Target Markets
Objectives ,[object Object],[object Object]
Steps in Market Segmentation, Targeting,and Positioning 1. Identify segmentation variables and segment the market 2. Develop  profiles of resulting segments Market Segmentation 3.  Evaluate attractiveness of each segment 4.  Select the target segment(s) Market Targeting 5.  Identify possible positioning concepts for each target segment 6.  Select, develop, and communicate the chosen positioning concept Market Positioning
Basic Market-Preference Patterns (a) Homogeneous preferences Sweetness Creaminess (c) Clustered preferences Creaminess Sweetness (b) Diffused preferences Creaminess Sweetness
Market-Segmentation Procedure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic
Bases for Segmenting Business Markets ,[object Object],[object Object],[object Object],[object Object],[object Object]
Effective Segmentation Measurable Accessible Substantial Differential Actionable ,[object Object],[object Object],[object Object],[object Object],[object Object]
Heavy and Light Users of Common Consumer Products HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94%) 25% 29% 79% 21% Toilet tissue (95%) Shampoo (94%) 75% 25% 17% 17% Paper towels (90%) Cake mix (74%) Cola (67%) 83% 83% 13% 5 % 87% 19% Beer (41%) Dog food (30%) Bourbon (20%) 81% 95%
Additional Segmentation Criteria ,[object Object],[object Object],[object Object],[object Object]
Five Patterns of Target Market Selection Single-segment concentration Product specialization M1  M2  M3  P1 P2 P3 Selective specialization M1  M2  M3  P1 P2 P3 M1  M2  M3  Full market coverage P1 P2 P3 Market specialization M1  M2  M3  P1 P2 P3 P1 P2 P3 M1  M2  M3  P = Product M = Market
Segment-by-Segment Invasion Plan Customer Groups Truckers Railroads Airlines Large computers Product Varieties Personal computers Mid-size computers Company B Company C Company A
Review ,[object Object],[object Object]

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Market segmentation ppt

  • 1. Identifying Market Segments and Selecting Target Markets
  • 2.
  • 3. Steps in Market Segmentation, Targeting,and Positioning 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Segmentation 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Targeting 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept Market Positioning
  • 4. Basic Market-Preference Patterns (a) Homogeneous preferences Sweetness Creaminess (c) Clustered preferences Creaminess Sweetness (b) Diffused preferences Creaminess Sweetness
  • 5.
  • 6. Bases for Segmenting Consumer Markets Occasions, Benefits, Uses, or Attitudes Behavioral Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic
  • 7.
  • 8.
  • 9. Heavy and Light Users of Common Consumer Products HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94%) 25% 29% 79% 21% Toilet tissue (95%) Shampoo (94%) 75% 25% 17% 17% Paper towels (90%) Cake mix (74%) Cola (67%) 83% 83% 13% 5 % 87% 19% Beer (41%) Dog food (30%) Bourbon (20%) 81% 95%
  • 10.
  • 11. Five Patterns of Target Market Selection Single-segment concentration Product specialization M1 M2 M3 P1 P2 P3 Selective specialization M1 M2 M3 P1 P2 P3 M1 M2 M3 Full market coverage P1 P2 P3 Market specialization M1 M2 M3 P1 P2 P3 P1 P2 P3 M1 M2 M3 P = Product M = Market
  • 12. Segment-by-Segment Invasion Plan Customer Groups Truckers Railroads Airlines Large computers Product Varieties Personal computers Mid-size computers Company B Company C Company A
  • 13.