MARKETING MANAGEMENT Chapter 8 Identifying Market Segments and Targets
1 MARKETING MANAGEMENT Chapter 8 Identifying Market Segments and Targets
Chapter Questions What are the different levels of market segmentation? How can a company divide a market into segments? How should a company choose the most attractive target markets What are the requirements for effective segmentation?
2 Chapter Questions • What are the different levels of market segmentation? • How can a company divide a market into segments? • How should a company choose the most attractive target markets? • What are the requirements for effective segmentation?
Mature consumers are a rapidly growing market
3 Mature consumers are a rapidly growing market
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
4 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
A Mass Market Approach 上 ORD MOTOR CARS Model T Towring C th I =画 http:/ww WATCH THE FORDS GO BY
5 A Mass Market Approach
Mass Marketing Mass marketing creates the largest potential market, which leads, to the lowest costs that in turn can lead to lower prices or higher margins
6 Mass Marketing • Mass marketing creates the largest potential market, which leads, to the lowest costs that in turn can lead to lower prices or higher margins
Four levels of micromarketing Segments Niches Local areas Customerization
7 Four levels of Micromarketing Segments Local areas Customerization Niches
Segment Marketing A market segment consists of a group of customers who share a similar set of needs and Wants The marketer does not create the segments The marketer's task is to identify the segments and decide which one(s)to target a flexible market offering consists of two parts A naked solution containing the product and service elements that all segment members value Discretionary options that some segment members value
8 Segment Marketing • A market segment consists of a group of customers who share a similar set of needs and wants. – The marketer does not create the segments. – The marketer’s task is to identify the segments and decide which one(s) to target. • A flexible market offering consists of two parts: – A naked solution containing the product and service elements that all segment member’s value. – Discretionary options that some segment member’s value
Segment Marketing Market segments can be defined in many different ways One way to carve up a market is to identify preference segments Homogeneous preferences Diffused preferences -Clustered preferences
9 Segment Marketing • Market segments can be defined in many different ways: • One way to carve up a market is to identify preference segments. –Homogeneous preferences. –Diffused preferences. –Clustered preferences
Basic market Preference Patterns (a)Homogeneous (b)Diffused (c)Clustered Preferences Preferences Preferences 00QsE5 gEE5 ∴ Sweetness Sweetness Sweetness
10 Basic Market Preference Patterns