Segmenting and Targeting Markets

Segmenting and Targeting Markets

1. market segment

   • Is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

2. Criteria for Successful Segmentation

   • segmentation enables marketers to identify groups of customers with similar needs
     • a segmentation scheme must produce segments that meet four basic criteria:
       • Substantiality
       • Identifiability and measurability
       • Accessibility
       • Responsiveness

3. Bases for Segmenting Consumer Markets

   • geography, demographics, psychographics, benefits sought, and usage rate

4. The business market consists of four broad segments

   • producers, resellers, government, and institutions.

5. Steps in Segmenting a Market

   • 1.Select a market or product category for study:
   • 2.Choose a basis or bases for segmenting the market
   • 3.Select segmentation descriptors
   • 4.Profile and analyze segments

6. Strategies for Selecting Target Markets

   • Undifferentiated Targeting
     • Viewing the market as one big market with no individual segments
   • Concentrated Targeting
     • a firm selects a market niche (one segment of a market) for targeting its marketing efforts
   • Multisegment Targeting
     • A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each

7. Positioning Bases

   • Attribute
   • Price and quality
   • Use or application
   • Product user
   • Product class
   • Competitor
   • Emotion