Chapter 9 - kisi.deu.edu.trkisi.deu.edu.tr/sumeyra.duman/MBA 5011 STR.MRK.MAN/PPT/Kotler_mm15e... · In what ways can a company divide the consumer market into segments? 2. How should

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Copyright © 2016 Pearson Education Ltd. 9-1

Chapter

9

Identifying

Market Segments

and Targets


Learning Objectives

1. In what ways can a company divide the

consumer market into segments?

2. How should business markets be segmented?

3. How should a company choose the most

attractive target markets?

4. What are the requirements for effective

segmentation?

5. What are the different levels of market

segmentation?

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Bases for Segmenting

Consumer Markets• Market segment

– A group of customers who share a similar set

of needs and wants

Geographic

segmentation

Psychographic

segmentation

Demographic

segmentation

Behavioral

segmentation


Geographic Segmentation

• Geographical units

– Nations, states, regions, counties, cities, or

neighborhoods

• Nielsen Claritas’ PRIZM

– Education and affluence

– Family life cycle

– Urbanization

– Race and ethnicity

– Mobility

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Geographic Segmentation


Demographic Segmentation

Age & life-

cycle stageLife stage

Gender

IncomeGeneration

Race &

culture

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• Age and life-cycle stage

– Our wants and abilities change with age

• Life stage

– A person’s major concern (e.g., divorce)



• Gender

– Men and women have

different attitudes and

behave differently

• Income

– Income segmentation is

a long-standing practice

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• Generation

Millennials (Gen Y)

Baby Boomers

Gen X

Silent Generation



• Race and culture

Hispanic Americans

African Americans

Asian Americans

LGBT

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Psychographic Segmentation

• Buyers are divided into groups on the

basis of psychological/personality traits,

lifestyle, or values


Figure 9.1: VALS

Segmentation System

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BEHAVIORAL

SEGMENTATION• Marketers divide buyers into groups on the

basis of their knowledge of, attitude

toward, use of, or response to a product


BEHAVIORAL

SEGMENTATION• Needs and benefits

• Decision roles

– Initiator

– Influencer

– Decider

– Buyer

– User

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USER AND USAGE-RELATED

VARIABLES

Occasions User status

Usage rate

Buyer-

readiness

stage

Loyalty

status

Attitude


Figure 9.2

Marketing Funnel

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Figure 9.3

Behavioral Segmentation

Breakdown


How Should Business Markets

Be Segmented?

Demographic

Operating variables

Purchasing approaches

Purchasing approaches

Situational factors

Personal characteristics

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Market targeting


Effective

Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

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Porter’s five forces

Threat of Rivalry

Threat of Supplier

Bargaining Power

Threat of Buyer

Bargaining Power

Threat of

New Entrants

Threat of

Substitutes


Evaluating & Selecting the

Market Segments• Figure 9.4: Possible Levels of

Segmentation

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One-to-one marketing

Identify your prospects and customers

Differentiate customers in terms of their needs

and value to your company

Interact to improve your knowledge about

customers’ needs and to build relationships

Customize products, services,

and messages to each customer


Legal and Ethical Issues

• Marketers must avoid

consumer backlash

– Labeling consumers

– Vulnerable groups

– Disadvantaged groups

– Potentially harmful

products

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Documents

Chapter 9 - kisi.deu.edu.trkisi.deu.edu.tr/sumeyra.duman/MBA 5011 STR.MRK.MAN/PPT/Kotler_mm15e... · In what ways can a company divide the consumer market into segments? 2. How should