8-1

MARKETING MANAGEMENT

8 Identifying Market

Segments and Targets

8-2

Chapter Questions

• What are the different levels of market segmentation?

• How can a company divide a market into segments?

• How should a company choose the most attractive target markets?

• What are the requirements for effective segmentation?

8-3

Mature consumers are a rapidly growing market

8-4

Effective Targeting Requires…

• Identify and profile distinct groups of buyers

who differ in their needs and preferences.

• Select one or more market segments to

enter.

• Establish and communicate the distinctive

benefits of the market offering.

8-5

A Mass Market Approach

8-6

General Motors

Alfred P. Sloan

“A car for every purse and purpose”

• Cadillac

• Oldsmobile

• Pontiac

• Buick

• Chevrolet

8-7

8-8

8-9

8-10

8-11

8-12

8-13

Mercedes

8-14

Volvo

8-15

Volvo

8-16

Four levels of Micromarketing

Segments

Local areas Individuals

Niches

8-17

Basic Market Preference Patterns

8-18

Customerization

Combines operationally drivenmass customization with customizedmarketing in a way that empowers

consumers to design theproduct and service offering

of their choice.

8-19

Segmenting Consumer Markets

GeographicGeographic

DemographicDemographic

PsychographicPsychographic

BehaviouralBehavioural

8-20

Demographic Segmentation

Age and Life CycleAge and Life Cycle

Life StageLife Stage

GenderGender

IncomeIncome

GenerationGeneration

Social ClassSocial Class

8-21

Toyota Scion targets Gen Y consumers

8-22

Loyalty Status

Switchers

Shifting loyals

Split loyals

Hard-core

8-23

The Conversion Model

Convertible Shallow Average Entrenched

Strongly

unavailableAmbivalent Available

Weakly

unavailable

Users Nonusers

8-24

Models of Sequential Segmentation

Stage of decision

• First-time prospects

• Novices

• Sophisticates

Orientation

• Price-oriented

• Solution-oriented

• Strategic-value

8-25

Patterns of Target Market Selection

8-26

Patterns of Target Market Selection

8-27

Effective Segmentation Criteria

MeasurableMeasurable

SubstantialSubstantial

AccessibleAccessible

DifferentiableDifferentiable

ActionableActionable

8-28

Segment-by-Segment Invasion Plan

8-29

Pepsi in India

8-30

Marketing Discussion

How would you classify yourself interms of the various segmentationschemes?