identifying market segments and targets marketing management, 13 th ed 8
TRANSCRIPT
Identifying Market Segments
and Targets
Marketing Management, 13th ed
8
What is so Good about Segmentation ?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-2
Market Segmentation is not the same thing as Customer
Segmentation
mmd/UM/Kotler8mmd/August2009
Norway 4-0 Scotland
Scotland's World Cup dream was left on a knife edge after they suffered a crushing defeat at the hands of an Egil Olsen-inspired Norway.
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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?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-6
Four levels of Micromarketing
Segments
Local areas Individuals
Niches
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Segmenting Consumer Markets
GeographicGeographic
DemographicDemographic
PsychographicPsychographic
BehaviouralBehavioural
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Demographic Segmentation
Age and Life CycleAge and Life Cycle
Life StageLife Stage
GenderGender
IncomeIncome
GenerationGeneration
Social ClassSocial Class
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The VALS Segmentation System
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Behavioural Segmentation
Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User
Behavioural Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-11
The Brand Funnel: Variations in the Buyer-Readiness Stage
• Aware
• Ever tried
• Recent trial
• Occasional user
• Regular user
• Most often used
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Loyalty Status
Switchers
Shifting loyals
Split loyals
Hard-core
Behavioural Segmentation
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The Conversion Model
Convertible Shallow Average Entrenched
Strongly
unavailableAmbivalent Available
Weakly
unavailable
Users Nonusers
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Segmenting for Business Markets
DemographicDemographic
Operating VariableOperating Variable
Purchasing ApproachesPurchasing Approaches
Situational FactorsSituational Factors
PersonalCharacteristics
PersonalCharacteristics
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Steps in Segmentation Process
Needs-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Marketing-Mix
Strategy
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Effective Segmentation Criteria
MeasurableMeasurable
SubstantialSubstantial
AccessibleAccessible
DifferentiableDifferentiable
ActionableActionable
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Figure 8.4 Patterns of Target Market Selection
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Figure 8.4 Patterns of Target Market Selection
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Figure 8.4 Patterns of Target Market Selection
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-21
Figure 8.5 Segment-by-Segment Invasion Plan
The DHL Segmentation Programme
• Course at INSEAD on Advanced Industrial Market Segmentation (2 weeks)
• Adopted Cranfield Model (Prof. Malcolm MacDonald)
• Joint Marketing Team formed between 2 Countries (ES & UK)
• Quant research in the ES & UK
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DHL Segmentation Programme
• In conjunction with Bain management consultants we future proofed the segments
• Qualitative research to re-assess relevant measures
• 8 Country Quant Validation exercise
• Segmentation Toolkit rolled out Worldwide
• New Business Unit created for the Advantage Segment