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
targeting?
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
8-5
8-6
8-7
8-8
8-9
8-10
Segmentation
• What was the segmentation strategy?
• Are there any OTHER possible ways to
segment the auto market?
8-11
8-12
Mercedes
8-13
Volvo
8-14
Volvo
8-15
Basic Market Preference Patterns
8-16
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioural
8-17
Toyota Scion targets Gen Y consumers
8-18
Effective Targeting Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
8-19
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.
8-20
Patterns of Target Market Selection
8-21
Marketing Discussion
http://www.youtube.com/watch?v=VIL04ajbDO4
1. When does it make sense to
“fire your customer?
8-22