Segmenting and Targeting Markets

Segmenting and Targeting Markets

1. Market

   • Individuals
   • Organization
   • Needs or Wants TO BUY

2. Market Segment

   • These have similar product needs and its a subgroup

3. Market Segmentation

   • Dividing a market
     • Importance
       • Precise customers needs and wants
       • Accurate marketing objectives and resource allocation
       • Better results
   • Criteria for Segmentation
     • Substantiability
       • A bunch of people
     • Identifiability and Measurability
     • Accessibility
       • Reachable with marketing mix
     • Responsiviness

4. Segmentation Bases

   • Characteristics used to divide the total market into segments
   • Geography
     • °Region °Market size °Market density °Climate
   • Demographics
     • °Age °Gender °Income °Ethnic background °Family lilfe cycle [age,material satatus and children]
       • Tweens Teens Millennials Generation X Baby Boomers The War Generation The Great Depression Generation
         • DINK'S double income with no kids
   • Psychographics
     • °Personality °Motives °Lifestyles °Geodemographic [neighborhood]
   • Benefits Sought
   • Usage Rate
     • Amount of product bought or used (former, potential, medium, heavy)
   • For Business Markets
     • °Producers °Resellers °Government °Institutions
       • Company Characteristics
         • °Geographic location °Type of company °Company Size °Volume of Purchase °Product Use
       • Buying Processes
         • Satisficers [beer corona] and Optimizers [beer for an event, satisfice others]
         • °Demographic characteristics °Decision style °Tolerance for Risk °Confidence Level °Job Responsabilities

5. Strategies for Selecting Target Markets

   • Undifferentiated
     • One big market
   • Concentrated
     • Selects one segment- Niche
   • Multisegment
   • Cannibalization
     • When an old product gets over rated by a new one by the same brand

6. One to one Marketing

   • Cuastomer information for long term relationship

7. ªPositioning ªProduct Differentiation ªPerceptual Mapping (display) ªRepositioning