MARKETING MANAGEMENT
8
Identifying Market
Segments and
Targets
8-1
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?
8-2
Mature
consumers
are a rapidly
growing market
8-3
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.
8-4
A Mass Market Approach
8-5
General Motors
Alfred P. Sloan
“A car for every purse and purpose”
• Cadillac
• Oldsmobile
• Pontiac
• Buick
• Chevrolet
8-6
8-7
8-8
8-9
8-10
8-11
8-12
Mercedes
8-13
Volvo
8-14
Volvo
8-15
Four levels of Micromarketing
Segments
Niches
Local areas
Individuals
8-16
Basic Market Preference Patterns
8-17
Customerization
Combines operationally driven
mass customization with customized
marketing in a way that empowers
consumers to design the
product and service offering
of their choice.
8-18
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioural
8-19
Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
8-20
Toyota Scion targets Gen Y consumers
8-21
Models of Sequential Segmentation
Stage of decision
• First-time
prospects
• Novices
• Sophisticates
Orientation
• Price-oriented
• Solution-oriented
• Strategic-value
8-22
Patterns of Target Market Selection
8-23
Patterns of Target Market Selection
8-24
Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
8-25