Market Segmenting

8/10/2019 Market Segmenting

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Objectives

Identifying Market Segments

Choosing Target Markets

Positioning for competitive advantages


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Steps in Market Segmentation, Targeting,and

Positioning

1. Identify

segmentation

variables and

segment the

market

2. Develop

profiles ofresulting

segments

MarketSegmentation

3. Evaluate

attractiveness

of each

segment

4. Select the

target

segment(s)

MarketTargeting

5. Identifypossible

positioningconcepts foreach target

segment

6. Select,develop, and

communicatethe chosenpositioning

concept

MarketPositioning


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Basic Market-Preference Patterns

(a) Homogeneouspreferences

Sweetness

Cre

aminess

(c) Clusteredpreferences

Creaminess

Sweetness

(b) Diffusedpreferences

Creaminess

Sweetness


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Market-Segmentation Procedure

SurveyMotivations

Attitudes

Behavior

AnalysisFactors

Clusters Profiling


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Bases for Segmenting Consumer

Markets

Occasions, Benefits,Uses, or Att itudes

Behavioral

Geographic

Region, City or MetroSize, Density, Climate Demographic

Age, Gender, Family sizeand Life cycle, Race,Occupation, or Income ...

Lifestyle or Personality

Psychographic


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Bases for Segmenting Business

Markets

Demographic

Operating Variables

Purchasing Approaches Situational Factors

Personal Characteristics


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Measurable

Accessible

Substantial

Differential

Segments must be large or

profi table enough to serve.

Segments can beeffectively reached andserved.

Actionable

Size, purchasing power,profi les of segments canbe measured.

Segments must responddifferently to differentmarketing mix elements &actions.

Must be able to attract and

serve the segments.

Effective Segmentation


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Additional Segmentation Criteria

Ethical Choice of Market Targets

Segment Interrelationships & Supersegments

Segment-by-Segment Invasion Plans Intersegment Cooperation


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Five Patterns of Target Market Selection

Single-segmentconcentration Product

specialization

M1 M2 M3

P1

P2

P3

Selectivespecialization

M1 M2 M3

P1

P2

P3

M1 M2 M3

Full marketcoverage

P1

P2

P3

Marketspecialization

M1 M2 M3P1

P2

P3

P1

P2

P3

M1 M2 M3

P = ProductM = Market


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Segment-by-Segment

Invasion Plan

Customer GroupsTruckersRailroadsAirl ines

Largecomputers

ProductVarie

ties

Personalcomputers

Mid-sizecomputers

Company B Company CCompany A


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Product Differentiation

Form

Fea-

tures

Perfor-

mance Quality

Conform-

anceQuality

Dura-

bility

Relia-

bility

Repair-

abilityStyle Design


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Delivery

Services Differentiation

Ordering

Ease

Maintenance& Repair

CustomerTraining

InstallationCustomer

Consulting Miscellaneou

s

Services


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Media Atmosphere

Symbols

Events

Image Differentiation


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Differences WorthEstablishing

Affordable Superior

Profitable

Preemptive

Distinctive

Important


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Positioningis the act of

designing the companys

offering and image to occupy adistinctive place in the the

target markets mind.


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Perceptual Map

0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6-1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2

1.0

0.8

0.6

0.4

0.2

-0.2

-0.4

-0.6

-0.8

MagicMountain

JapaneseDeer Park

BuschGardens

KnottsBerryFarm

LionCountrySafari

Marinelandof thePacific

Disneyland

Economical

Fun ridesExercise

FantasyGood food

Easy to reach

Educational,animals

Little waitingLive shows

Documents

Market Segmenting