Identifying Market Segments and Selecting Target Markets

Psychographic
Lifestyle or Personality
Behavioral
Occasions, Benefits, Uses, or Attitudes
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Bases for Segmenting Business Markets
Demographic Operating Variables Purchasing Approaches Situational Factors Personal Characteristics
Differential Actionable
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Additional Segmentation Criteria
Ethical Choice of Market Targets Segment Interrelationships & Supersegments Segment-by-Segment Invasion Plans Intersegment Cooperation
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Bases for Segmenting Consumer Markets
Geographic
Region, City or Metro Size, Density, Climate
Demographic
Age, Gender, Family size and Life cycle, Race, Occupation, or Income ...

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Product Differentiation
Form
Features
Performance
Quality
Conformance Quality
Durability
Reliability
Repairability
Style
Design
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Objectives
Identify Differentiating g Effective Positioning Marketing Strategies Along the Product Life Cycle Marketing Strategy & Market Evolution
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Positioning is the act of
Sales & Profit Life Cycles
Sales & profits ($)
Introduction
Growth
Maturity
Decline
Time
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Four Introductory Marketing Strategies
Promotion
High High Low
Rapidskimming strategy
Slowskimming strategy
Price
Low
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Rapidpenetration strategy
Slowpenetration strategy
Maturity Stage

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Effective Segmentation
Measurable Substantial Accessible
• Size, purchasing power, profiles of segments can be measured. • Segments must be large or profitable enough to serve. • Segments can be effectively reached and served. • Segments must respond differently to different marketing mix elements & actions. • Must be able to attract and serve the segments.
Market Modification Product Modification Marketing-Mix Modification

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Decline Stage
Decrease investment Resolve uncertainties - stable investment Selective niches Harvesting Divesting
Differentiation
Personnel Channel

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Image Differentiation
Media Atmosphere
Symbols
Events
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Important
Profitable
Distinctive
Differences Worth Establishing
Affordable Preemptive Superior
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designing the company’s offering and image to occupy a distinctive place in the the target market’s mind. P 298

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Market Evolution
Emergence Growth Maturity Decline

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Objectives
Identifying Market Segments Choosing Target Markets

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Market-Segmentation Procedure
Survey Motivations Attitudes Behavior Analysis Factors Clusters Profiling
Services Differentiation
Ordering Ease
Installation
Customer Consulting
Miscellaneous Services
Delivery
Customer Maintenance Training & Repair
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