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Chapter 8: Market Segments and Targets

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Chapter 8: Market Segments and Targets

  1. 1. IDENTIFYING MARKET SEGMENTS and TARGETS Elaine R. Buday Ateneo Graduate School of Business 01 December 2009 Top 10 Concepts
  2. 2. Outline: All markets have… <ul><li>Different levels of market segmentation (what?) </li></ul><ul><li>Segments (how to divide?) </li></ul><ul><li>Most attractive target markets (how to choose?) </li></ul><ul><li>Requirements for effective segmentation (what?) </li></ul>
  3. 3. Outline: Markets have… <ul><li>Activities for target marketing (what?) </li></ul><ul><li>Mass marketing (why?) </li></ul><ul><li>Micromarketing at 1 of 4 levels (how?) </li></ul><ul><li>Segments (bases?) </li></ul><ul><li>Segmentation variables (what) </li></ul>
  4. 4. Outline: Markets have… <ul><li>Segmentation process (steps?) </li></ul><ul><li>Usefulness (how?) </li></ul><ul><li>Most attractive target markets (how to choose?) </li></ul><ul><li>Requirements for effective segmentation (what?) </li></ul><ul><li>Additional considerations (what?) </li></ul>
  5. 5. Concept 1: Activities for Target Marketing
  6. 6. Concept 2: Mass Marketing mass distribution mass production mass promotion
  7. 7. Concept 3: Micromarketing at 1 of 4 levels segments niches local areas individuals
  8. 8. Concept 4: Segments <ul><li>There are 2 bases for segmenting consumer markets: </li></ul><ul><li>Consumer characteristics </li></ul><ul><li>Consumer responses </li></ul>
  9. 9. Concept 5: Segmentation variables <ul><li>Major segmentation variables for consumer markets are: </li></ul><ul><li>Geographic </li></ul><ul><li>Demographic </li></ul><ul><li>Psychographic </li></ul><ul><li>Behavioral </li></ul>
  10. 10. Concept 6: Segmentation Process <ul><li>Needs-Based Market Segmentation Approach: </li></ul><ul><li>Needs-Based Segmentation </li></ul><ul><li>Segment Identification </li></ul><ul><li>Segment Attractiveness </li></ul><ul><li>Segment Profitability </li></ul><ul><li>Segment Positioning </li></ul><ul><li>Segment “Acid Test” </li></ul><ul><li>Marketing – Mix Strategy </li></ul>
  11. 11. Concept 7: Useful Market Segments <ul><li>Measurable </li></ul><ul><li>Substantial </li></ul><ul><li>Accessible </li></ul><ul><li>Differentiable </li></ul><ul><li>Actionable </li></ul>
  12. 12. Concept 8: Most attractive target markets <ul><li>A firm must evaluate the various segments, </li></ul><ul><li>decide how many & which ones to target: </li></ul><ul><li>Single-segment concentration </li></ul><ul><li>Selective specialization </li></ul><ul><li>Product specialization </li></ul><ul><li>Market specialization </li></ul><ul><li>Full market coverage </li></ul>
  13. 13. Concept 9: Requirements for Effective Segmentation <ul><li>Monitor segment relationships </li></ul><ul><li>Companies should be cautious about over segmenting their markets </li></ul><ul><li>Counter segmentation to broaden customer base </li></ul>
  14. 14. Concept 10: Additional Considerations
  15. 15. Summary: Markets have… <ul><li>Activities for target marketing (what?) </li></ul><ul><li>Mass marketing (why?) </li></ul><ul><li>Micromarketing at 1 of 4 levels (how?) </li></ul><ul><li>Segments (bases?) </li></ul><ul><li>Segmentation variables (what) </li></ul>
  16. 16. Summary: Markets have… <ul><li>Segmentation process (steps?) </li></ul><ul><li>Usefulness (how?) </li></ul><ul><li>Most attractive target markets (how to choose?) </li></ul><ul><li>Requirements for effective segmentation (what?) </li></ul><ul><li>Additional considerations (what?) </li></ul>
  17. 17. My Conclusion:
  18. 18. IDENTIFYING MARKET SEGMENTS and TARGETS Elaine R. Buday Ateneo Graduate School of Business 01 December 2009 Top 10 Concepts

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