MARKETING MANAGEMENT
Market Segments
and Targets
8-1
Chapter Questions
How can markets be segmented?
How can a company best 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
A Mass Market Approach
8-4
General Motors
Alfred P. Sloan
“A car for every purse and purpose”
• Cadillac
• Oldsmobile
• Pontiac
• Buick
• Chevrolet
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8-8
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8-11
Mercedes
8-12
Volvo
8-13
Volvo
8-14
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.
8-15
Basic Market Preference Patterns
8-16
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioural
8-17
Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
8-18
Toyota Scion targets Gen Y consumers
8-19
Patterns of Target Market Selection
8-20
Patterns of Target Market Selection
8-21
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.
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Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
8-23
Marketing Discussion
1. Who are the most attractive targets?
2. When does it make sense to
“fire your customer?
8-24