CONSUMER BEHAVIOR
Market Segmentation And Target
Marketing
Why is Marketing Segmentation is
Necessary?
• All consumers are not alike
• Enable producers to avoid head-on
competition in the market place
• Key elements of marketing most consumer
goods
• Services segment their markets
• New product launch, New Brands
Criteria for Effective Targeting
To be an effective target, a market segment
should be:
• Identifiable
• Sizeable
• Stable
• Accessible
• Congruent with the company’s objective and
resources
Consumer Rooted Segmentation Bases
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Demographic segmentation
Gender
Marital Status
Family Life Cycle
Income, Education and Occupation
Geo-demographic Segmentation
Personality Traits
Lifestyles
Socio-cultural Values and Beliefs
Culture and Subculture
A Diagram of VALS Segments
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Innovators
Thinkers
Believers
Achievers
Strivers
Experiences
Makers
Survivors
Consumption Specific Segmentation
Bases
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Usage Rate Segmentation
Usage Situation Segmentation
Benefit Segmentation
Media Benefits
Brand Experience as a Segmentation
Base
• Brand loyalty and relationship
• Brand loyalty and age-cycle concept of
Segmentation
Implementing Segmentation strategies
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Behavioral Targeting
Micro-targeting
Concentrated versus Differentiated marketing
Counter-Segmentation