Presentation on Identifying Market Segments and Targets www.AssignmentPoint.com WHY SEGMENT MARKETS? • What Market Segmentation Means Market segments Product differentiation • Segmentation: Linking Needs to Action Market segmentation links market needs to an organization’s marketing program WHY SEGMENT MARKETS? • What Market Segmentation Means (cont) • How Reebok’s Segmentation Strategy Developed Reebok market-product grid showing how different shoes reach segments of customers with different needs WHY SEGMENT MARKETS? • What Market Segmentation Means • Using Market-Product Grids WHY SEGMENT MARKETS? • When to Segment Markets • One Product and Multiple Market Segments • Multiple Products and Multiple Market Segments • Segments of One: Mass Customization • The Segmentation Trade Off: CRM versus synergies STEPS IN SEGMENTING AND TARGETING MARKETS STEPS IN SEGMENTING AND TARGETING MARKETS • Form Prospective Buyers into Segments • Criteria to Use in Forming the Segments Potential for increased profit and ROI Similarity of needs of potential buyers in a segment Difference of needs of buyers among segments Feasibility of a marketing action reaching segment Simplicity and cost of assigning buyers to markets Segmentation variables and breakdowns for U.S. consumer markets STEPS IN SEGMENTING AND TARGETING MARKETS Ways to Segment Consumer Markets Usage rate 80/20 rule Comparison of various kinds of users and nonusers for Wendy’s, Burger King, and McDonald’s restaurants Fast-Food Patronage: Simmons Fall 2001 National Consumer Survey Segmentation variables and breakdowns for U.S. organizational markets STEPS IN SEGMENTING AND TARGETING MARKETS • Form Products to Be Sold into Groups • Develop a Market-Product Grid and Estimate Size of Markets STEPS IN SEGMENTING AND TARGETING MARKETS • Select Target Markets • Criteria to Use in Picking the Target Segments Market size Expected growth Competitive position Cost of reaching the segment Compatibility with objectives and resources • Choose the Segments STEPS IN SEGMENTING AND TARGETING MARKETS • Take Marketing Actions to Reach Target Markets POSITIONING THE PRODUCT • Two Approaches to Product Positioning Head-to-head positioning Differentiation positioning POSITIONING THE PRODUCT • Product Positioning Using Perceptual Maps Evaluations of important attributes for a product class Judgments of existing brands with the important attributes Ratings of an ideal brand’s attributes