Market Segmentation

1
Market Segmentation

• Chapter 8

2
Market Segmentation

• What is it?
• Segments should
• Have common needs
• Respond similarly to a marketing action
• Product differentiation
• Market-product grid

Source http//www. b2binternational.com
3
Market Segmentation

• Segmentation Criteria
• Substantiality
• Identifiability
• Accessibility
• Responsiveness

4
Potential Buyers into Segments

• Ways to Divide the Market
• Region
• Age/ household size
• Lifestyle
• Benefits sought
• Usage rate
• 80/20 rule

5
Bases for Consumer Segmentation

• Geographic segmentation
• Demographic segmentation
• Age segmentation
• Tweens
• Generation Y
• Generation X
• Baby Boomers

6
Bases for Consumer Segmentation

• Demographic segmentation (contd)
• Gender segmentation
• Men
• Women
• Income segmentation
• Why used?
• Ethnic segmentation
• Ramifications
• Family life cycle segmentation
• Increasing role of single adults

Source http//hashtagsocialmedia.com
7
Bases for Consumer Segmentation

• Psychographic segmentation
• Personality
• Motives
• Lifestyles
• Geodemographics
• Claritas PRIZM
• Benefit segmentation
• Snack food market
• Usage rate segmentation
• 80/20 rule

8
Bases for Organizational Segmentation

• Company characteristics
• Geography
• Industry (NAICS)
• Size
• Product use
• Buying process
• What are they looking for?
• Optimizers v. satisficers

9
Strategies to Select Target Market

• Undifferentiated targeting
• One marketing mix for entire market
• Concentrated targeting
• One particular segment
• Multisegment targeting
• Wal-mart
• Brand aspirationalists, price sensitive
  affluents, value price shoppers
• One-to-one marketing
• Individualized

10
Positioning

• Product differentiation
• Perceptual map
• Repositioning
• Wal-mart
• Mountain Dew

Source http//mergevisual.blogspot.com