Segmentation & Targeting

Marketing

• Marketing is the process of creating , communicating and delivering the values to the customers.

Need Wants & Demand

Needs are state of felt deprivation

Wants are the form human needs take as shaped by culture and individual personality

Demands are human wants that are backed

by buying power

Segmentation & Targeting

• Segmentation: grouping consumers by some criteria

• Targeting: choosing which group(s) to sell to

Segmentation

Segment market

Choose target(s)

ENTIRE MARKET

SEGMENT 1SEGMENT 2

SEGMENT 3

• We first,

Determine which kinds of customers exist, then

Select which ones we are best off trying to serve and, finally,

Implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

Targeting

A target market or target audience is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise

Patterns to Target Market Selection

(1) Single Market Concentration

(2) Market Specialization

(3) Product Specialization

(4) Selective Specialization

(5) Full Coverage

Types of segmentation

• Geographic

•Demographic

•Psychographic

•Behavioral

Geographic • Nation• State• Region• Cities

Demographic• Age• Gender • Family Size• Income• Occupation• Education• Religion• Nationality• Social

Class

Psychographic • Lifestyle • Personalit

y

Behavioral

• Psychographic – Lifestyle – Personality

• Behavioral– Occasions

• Regular occasion or special occasion– Benefits

• Quality, service, economy, speed – User status

• Non user, ex user, potential user, first time user, regular user.– Usage rate

• Light user, medium user, heavy user– Loyalty status

• None, medium, strong – Readiness stage

• Unaware, aware, informed, interested, desirous, intending to buy– Attitude towards products

• Positive, negative, neutral