©2000 Prentice Hall

ObjectivesObjectivesObjectivesObjectives

Identifying Market SegmentsIdentifying Market Segments Choosing Target MarketsChoosing Target Markets

©2000 Prentice Hall

Market-Segmentation Market-Segmentation ProcedureProcedure

Market-Segmentation Market-Segmentation ProcedureProcedure

SurveySurveyMotivationsMotivationsAttitudesAttitudesBehaviorBehavior

AnalysisAnalysisFactorsFactorsClustersClusters

ProfilingProfiling

©2000 Prentice Hall

Bases for Segmenting Bases for Segmenting Consumer MarketsConsumer Markets

Bases for Segmenting Bases for Segmenting Consumer MarketsConsumer Markets

Occasions, Benefits, Uses, or Attitudes

Behavioral

GeographicRegion, City or MetroSize, Density, Climate Demographic

Age, Gender, Family size and Life cycle, Race, Occupation, or Income ...

Lifestyle or PersonalityPsychographic

©2000 Prentice Hall

Bases for Segmenting Bases for Segmenting Business MarketsBusiness Markets

Bases for Segmenting Bases for Segmenting Business MarketsBusiness Markets

DemographicDemographic Operating VariablesOperating Variables Purchasing ApproachesPurchasing Approaches Situational FactorsSituational Factors Personal CharacteristicsPersonal Characteristics

©2000 Prentice Hall

Measurable Measurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

• Segments must be large or profitable enough to serve.

• Segments can be effectively reached and served.

ActionableActionable

• Size, purchasing power, profiles of segments can be measured.

• Segments must respond differently to

different marketing mix elements & actions.

• Must be able to attract and serve

the segments.

Effective SegmentationEffective SegmentationEffective SegmentationEffective Segmentation

©2000 Prentice Hall

Additional Segmentation Additional Segmentation CriteriaCriteria

Additional Segmentation Additional Segmentation CriteriaCriteria

Ethical Choice of Market TargetsEthical Choice of Market Targets Segment Interrelationships & Segment Interrelationships &

SupersegmentsSupersegments Segment-by-Segment Invasion PlansSegment-by-Segment Invasion Plans Intersegment CooperationIntersegment Cooperation