segmentation and targets

8/9/2019 Segmentation and Targets

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Identifying

8888

and Targets

Mr. Ajit Arya

Faculty-Marketing

Department of Business Studies

C. U. Shah College of Engg. & Tech.


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Chapter Questions

What are the different levels of market

segmentation?

How can a company divide a market into

How should a company choose the mostattractive target markets?

What are the requirements for effectivesegmentation?


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Effective Targeting Requires

Identify and profile distinct groups of buyers

who differ in their needs and preferences.

Select one or more market segments to

. Establish and communicate the distinctive

benefits of the market offering.


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Four levels of Micromarketing

Segments Niches

Local areas Individuals


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What is a Market Segment?

A market segment consists of a

group of customers who share asimilar set of needs ad wants.


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Flexible Marketing Offerings

Naked solution:Product and

Discretionaryoptions: Some

that all segmentmembers value

members valueoptions but not all


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Preference Segments

Homogeneous preferences exist

when consumers want the same things

Diffused preferences exist when

Clustered preferences reveal naturalsegments from groups with shared

preferences


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Basic Market Preference Patterns


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The Himalaya Drug

Company serves agrowing niche marketby focusing on

Niche Marketing

ayurvedic medicinesand health supplements


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What is Customerization?Customerization combines operationally

driven mass customization with customizedmarketing in a way that empowers

consumers to design the product and service

offering of their choice.


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United Bank Ltd.

of Pakistan offerscustomized

cards to itscustomers


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Segmenting Consumer Markets

Geographic

Demographic

Psychographic

Behavioral


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Geographic Segmentation:Geographic Segmentation: Dividing an overall market into homogeneous groups

on the basis of their locations.

The logic behind this type of segmentation is thateo le who live in the same are share some similar

needs and wants and that these needs and wantsdiffer from those of people living in other areas.

For example:

Region North, East, South and West

City Size Metro, Town, Small Cities, Rural

Climate temperature, hot, humid


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Demographic Segmentation

Age and Life Cycle

Life Stage

Income

GenerationSocial Class


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No Market Segmentation


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Segmented by Age


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Segmented by Gender


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Segmentation based on Age Targeting

Young Consumers


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Bank Al Habibtar ets

Segmentation based on Life Stage

Targeting Senior Citizens

senior citizens


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Segmentation based on Occupation

Targeting Housewives


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JaguarJaguar

Segmentation based on


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Psychographic Segmentation

The VALS

SegmentationSystem


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UsingPsychographicSegmentation

Psychographicprofiles produce

rich descriptions ofpotential targetmarkets

Greater detail aidsin matching acompanys image

and its offeringswith the types ofconsumers who arelikely purchasers


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Behavioral Segmentation

Decision Roles

Initiator Influencer

Behavioral Variables

Occasions Benefits

ec er Buyer

User

ser tatus Usage Rate

Buyer-Readiness

Loyalty Status

Attitude


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Occasion Segmentation

Segmenting the market based on situation or occasion of

consumption of products.


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Benefit Segmentation


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EclipseEclipse

Segmentingby Benefits


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The Brand Funnel Illustrates Variations in

the Buyer-Readiness Stage

Aware

Ever tried

R n ri l

Occasional user

Regular user

Most often used


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Loyalty Status

Hard-core

Switchers

Shifting loyals

Split loyals


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Criteria for Effective Segmentation

Market segmentation cannot be used in allcases. To be effective, segmentation must

meet the following basic requirements. The market segments must be

measurable in terms of both urchasin

power and size. Marketers must be able to effectively

promote to and serve a market segment.

Market segments must be sufficientlylarge to be potentially profitable.

The number of segments must match the

firms capabilities.


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The Conversion Model

Convertible Shallow Average Entrenched

Stronglyunavailable

Ambivalent AvailableWeaklyunavailable

Users Nonusers


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Segmenting for Business Markets

Demographic

Operating Variable

Purchasing Approaches

Situational Factors

PersonalCharacteristics


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Steps in Segmentation Process

Needs-based segmentation

Segment identification

Marketing-MixStrate

Segment profitability

Segment positioning

Segment acid test


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Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable


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Patterns of Target Market Selection


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Segment by Segment Invasion


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Segment-by-Segment Invasion

Plan


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Thank You!!!Thank You!!!

segmentation and targets

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