bmgt 411 marketing management fall 2014 chris lovett

1. BMGT 411: Chapter 7
Identifying Market Segments and Targets

2. http://youtu.be/I_cW1QW4Aig Who is the Target Segment?

3. http://youtu.be/kBFFVzOCx8c Who is the Target Segment?

4. http://youtu.be/MWsP2aiBC14 Who is the Target Segment?

5. Chapter Questions
• In what ways can a company divide a consumer or business market into
segments?
• How should a company choose the most attractive target markets?
• What are the different levels of market segmentation?

6. Effective Targeting Requires…
• Identify and profile distinct groups of buyers who differ in their needs and
preferences
• Select one or more market segments to enter
• Establish and communicate the distinctive benefits of the market offering

7. Segmenting, Targeting, and Positioning (STP)

8. What is a Market
Segment?
A market segment consists of a
group of customers who share a
similar set of
needs and wants.

9. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral

10. Geographic
Segmentation

11. Demographic Segmentation
• Age and life cycle
• Life stage
• Gender
• Income
• Generation
• Social class
• Race and Culture

12. Demographic Cohorts

13. Gen Y Cohort Analysis

14. Be Careful Not to be too explicit in marketing…..
http://thecolbertreport.cc.com/videos/regxdh/
millennial-generation-soup-campaign

15. AARP What demographic segment is
most important?

16. Lululemon
What demographic segment is
most important?

17. Mercedes Benz
What demographic segment is
most important?

18. Psychographic
Segmentation
and The VALS Framework
http://
www.strategicbusinessinsights.c
om/vals/ustypes.shtml

19. Behavioral Segmentation Based on Needs and
Benefits
Initiator
Influencer
Decider
Buyer
User

20. Behavioral Segmentation: Behavioral Variables
1.Occasions: Time of day, week, month, year, or other defined time in a consumers life
• Ex: Sheetz Breakfast
2.User Status: Non users, ex users, potential users, first time users, regular users
!

21. Behavioral Segmentation: Behavioral Variables
3.Usage Rate: Light, Medium, and Heavy Product Users
4.Buyer Readiness Stage: Unaware, aware, informed, interested, desire, and intention to buy
5.Loyalty:
• Hard Core Loyal's: Always buy one brand
• Split Loyal's: Loyal to two or three brands
• Shifting Loyal's: Shift from one brand to another
• Switchers: Not loyal to any brand

22. Behavioral Segmentation: Behavioral Variables
• Hard Core Loyal
Examples:
• Split Loyal's Example:
• Shifting Loyal Examples:
• Switchers Examples:
!
• Enthusiastic Brands
• Positive Brands
• Indifferent Brands
• Negative Brands
• Hostile Brands

23. Effective Segmentation Criteria
• Measurable: The size, purchasing power, and characteristics of the segment can be
measured
• Substantial: A segment is large and profitable enough to serve
• Accessible: The segments can be effectively reached and served
• Differentiable: Distinguishable and respond differently to different marketing mix
elements
• Actionable: Affective programs can be developed for attracting and serving these
segments

24. Porter’s 5 Forces Model
Threat of Rivalry
Threat of Supplier
Bargaining Power
Threat of Buyer
Bargaining Power
Threat of
New Entrants
Threat of
Substitutes

25. Figure 7.3 Possible Levels
of Segmentation