IDENTIFYING MARKET SEGMENTS and TARGETS

Elaine R. BudayAteneo Graduate School of Business

01 December 2009

Top 10 Concepts

Outline: Markets have…

1. Activities for target marketing (what?)

2. Mass marketing (why?)

3. Micromarketing at 1 of 4 levels (how?)

4. Segments (bases?)

5. Segmentation variables (what)

Outline: Markets have…

6. Segmentation process (steps?)

7. Usefulness (how?)

8. Most attractive target markets (how to choose?)

9. Requirements for effective segmentation (what?)

10. Additional considerations (what?)

Concept 1:

Activities for Target Marketing

mass distribution

Concept 2:

Mass Marketing

mass production

mass promotion

Concept 3:

Micromarketing at 1 of 4 levels

segmentsniches

local areas

individuals

Concept 4:

Segments

There are 2 bases for segmenting consumer markets:

1. Consumer characteristics2. Consumer responses

Concept 5:

Segmentation variables

Major segmentation variables for consumer markets are:

1. Geographic2. Demographic3. Psychographic4. Behavioral

Concept 6:

Segmentation Process

Needs-Based Market Segmentation Approach:

1. Needs-Based Segmentation

2. Segment Identification

3. Segment Attractiveness

4. Segment Profitability

5. Segment Positioning

6. Segment “Acid Test”

7. Marketing – Mix Strategy

Concept 7:

Useful Market Segments

1. Measurable

2. Substantial

3. Accessible

4. Differentiable

5. Actionable

Concept 8:

Most attractive target markets

A firm must evaluate the various segments,

decide how many & which ones to target:

1. Single-segment concentration

2. Selective specialization

3. Product specialization

4. Market specialization

5. Full market coverage

Concept 9:

Requirements for Effective Segmentation

Monitor segment relationships

Companies should be cautious about over segmenting their markets

Counter segmentation to broaden customer base

Concept 10:

Additional Considerations

Summary:Markets have…

1. Activities for target marketing (what?)

2. Mass marketing (why?)

3. Micromarketing at 1 of 4 levels (how?)

4. Segments (bases?)

5. Segmentation variables (what)

Summary: Markets have…

6. Segmentation process (steps?)

7. Usefulness (how?)

8. Most attractive target markets (how to choose?)

9. Requirements for effective segmentation (what?)

10. Additional considerations (what?)

My Conclusion:

IDENTIFYING MARKET SEGMENTS and TARGETS

Elaine R. BudayAteneo Graduate School of Business

01 December 2009

Top 10 Concepts