The document discusses market segmentation and targeting. It defines market segmentation as dividing a market into smaller groups with distinct characteristics. The key steps in segmentation are identifying segment bases, developing profiles, evaluating attractiveness, selecting a target segment, and designing a marketing mix for that segment. Segments can be defined based on geographic, demographic, psychographic, and behavioral factors. The target market is the specific group a company designs its marketing approach to reach and meet the needs of.

1. Market Segmentation, Targeting for Competitive Advantage

5. Levels of Market Segmentation Through Market Segmentation, Companies Divide Large, Heterogeneous Markets into Smaller Segments that Can be Reached More Efficiently And Effectively With Products and Services That Match Their Unique Needs. Mass Marketing Same product to all consumers (no segmentation, i.e Coca-Cola) Segment Marketing Different products to one or more segments (some segmentation, i.e. Marriott)

6. Levels of Market Segmentation Niche Marketing Different products to subgroups within segments (more segmentation, i.e. Standard or Luxury SUV’s) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Local Marketing Tailoring brands/ promotions to local customer groups, i.e Sears Individual Marketing Tailoring products and programs to the needs of individual customers, i.e. Dell

7. Basic Market-Preference Patterns (a) Homogeneous preferences Sweetness Creaminess (c) Clustered preferences Creaminess Sweetness (b) Diffused preferences Creaminess Sweetness

15. Segmenting Business Markets Demographics Operating Variables Purchasing Approaches Situational Factors Personal Characteristics Business Marketers Use Many of the Same Consumer Variables, Plus:

19. Segmenting International Markets Factors Used to Segment International Markets Geographic Location Economic Factors Political and Legal Factors Cultural Factors

21. 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

22. 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

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