IDENTIFYING MARKET SEGMENTS & TARGETSPresented bySony Kusumasondjaja, SE., MCom.

MASS MARKETINGThe seller engages in mass production, mass distribution, and mass promotion of one product for all buyersIt creates the largest potential market, which leads to lowest cost and lower price or higher marginIt is difficult now to target mass target or mass audience

LEVELS OF MICROMARKETINGSEGMENT MARKETINGNICHE MARKETINGLOCAL MARKETINGINDIVIDUAL MARKETING

SEGMENT MARKETINGMarket segment consists of a group of customers who share similar set of needs and wantsThe marketers do not create segments, they identify the segments and decide which one(s) to targetThe marketers can better design, price, disclose, and deliver the product to satisfy the target market

PATTERNS OF PREFERENCE SEGMENTSHOMOGENEOUS PREFERENCEDIFFUSED PREFERENCECLUSTERED PREFERENCE

NICHE MARKETINGA more narrowly defined customer group seeking a distinctive mix of benefitsThe niche customers have a distinct set of needs, will pay premium price to the firm, is not likely to attract competitors

CUSTOMIZATIONToday customers are taking more individual initiative in determining what and how to buyIt empowers customers to design products of their own choiceCustomization is not for every companyIt can raise costs more than the customers will paySome customers do not know what they want until they see the actual product

SEGMENTING CONSUMER MARKETGEOGRAPHIC SEGMENTATIONDEMOGRAPHIC SEGMENTATIONPSYHOGRAPHIC SEGMENTATIONBEHAVIORAL SEGMENTATION

SEGMENTATION FOR CONSUMER MARKETS

SEGMENTING BUSINESS MARKETSDEMOGRAPHIC SEGMENTATIONOPERATING VARIABLESPURCHASING APPROACHESSITUATIONAL FACTORSPERSONAL CHARACTERISTICS

STEPS IN SEGMENTATION

TARGET MARKET SELECTION