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Identifying market segments and targets
1. Chapter 8Chapter 8
Identifying Market Segments &Identifying Market Segments &
TargetsTargets
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2. Identifying Market
Segments
The Company can not relate to all of its
customers in a large market, a broad and
diverse
Companies can divide the market into
consumer groups (segments) with different
needs and desires
Companies must identify which segments can
be served effectively and profitably
3. Mass Marketing
Mass marketing: one product for all buyers
mass marketing company doing the
production, distribution, mass promotion all
consumers.
Mass marketing is popular because: a large
potential market, low production costs, the price
to consumers cheap / affordable
4. Market Segments
• Market segments : a group of customers who have a similar set of
needs and wants
• Task marketers: not invent, but to identify and decide which
segments are targeted
• Advantages :
1. Designing, pricing, release and deliver products / services to better
2. Customize programs and marketing activities to beat competitors
Marketing flexible market :
1. Naked solution: contains the products / services that are appreciated
all member segments
2. Options Open: Appreciated several segments members
The determination of the character of market segments :
1. Preferences homogeneous: When all consumers have the same
preferences
2. Preferences diffused: Consumers have varying preferences
3. Preferences group: resulting from market segments of consumer
groups with similar preferences
5. Niche Marketing
A niche is a more narrowly
customers who are looking
for a mix of different benefits
A niche is subsegment
Interesting niche:
1. Customers are willing to
pay more
2. Size, earnings and growth
potential
3. Not pull the other
competitors
4. Certain economy through
specialization
6. Local Marketing
Local marketing: marketing
objectives that are tailored
specifically to the needs and
wishes of local customers
Grass roots marketing:
marketing activities to as
close as possible and relevant
as possible with individual
customers
7. Individual Marketing
• Now customers began to take a
more individual initiative in
determining what to buy and how.
They went into the Internet,
searching for information and
evaluation of product or service,
engage in dialogue with suppliers,
users, and critics of the product,
and in many cases, designing a
product they want
8. Basic Consumer Market
Segmentation
1. Geographical segmentation
2. Demographic segmentation (age
and stage of life cycle, life stage,
gender, income, generation, social
class)
3. Psychographic segmentation
(combined Psychological &
Demography)
4. Behavioral segmentation (based on
consumer behavior)
9. Geographical Segmentation
Geographical segmentation
requires the division of the
market into various
geographic units such as the
State, state, region, district,
city, or neighborhood.
10. Demographic segmentation
In demographic segmentation, it divide the market
into groups based on variables such as age, life stage,
gender, income, etc.
11. Psychographic segmentation
Psychographic is the
science of using
psychology and
demographics in order to
better understand the
consumer. In
psychographic
segmentation, buyers are
divided into various groups
based on the nature of
psychological /
personality, lifestyle, or
value
13. Behavourial Segmentation
In behavioral
segmentation,
marketers divide
into several groups
based on
knowledge,
attitude, use of, or
response to a
product.
14. Behavourial Segmentation
Many marketers believe
that behavioral variables:
1. The occurrence: can be
defined based on the
time of day, month and
year.
. The benefits: not everyone
who buys a product
wants the same benefits
of the product.
15. 3. User Status: all products
have non-users, ex-users,
potential users, users first, and
regular users.
4. The level of use: the market
can be segmented into user-
class products light, medium,
and heavy.
16. 5. Loyalty Status
a. loyalist weight:
consumers who only buy
one brand over time.
b. loyalists were divided:
consumers loyal to two or
three brands
17. c. loyalists shifting: the loyalty
of consumers who switch
from one brand to another
brand.
d. The people who like to
move: consumers who do
not show loyalty to any
brand.
18. 6. Attitudes
There are five attitudes in the product are: Enthusiastic,
positive, apathetic, negative and aggressive.
Model Conversion: measure the strength of consumer
psychological commitment to the brand and their openness
to change.
19. Basic Market
Segmentation Business
We can segment the business market with some of the
same variables that we use in the consumer market,
such as geography, benefits sought, and the level of
use, but business marketers are also using other
variables.
21. Determination of the
target market
After the company identifies opportunities its market
segment, the company must decide how many and
which segments should be targeted.
There are two additional considerations in evaluating
and selecting segments, namely:
1. The invasion plan segment-by-segment.
2. The ethical choice target market
