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Prepared by Deborah Baker Texas Christian University

7. Segmenting and Targeting Markets. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Describe the characteristics of markets and market segments 2. Explain the importance of market segmentation 3. Discuss criteria for successful market segmentation.

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Prepared by Deborah Baker Texas Christian University

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  1. 7 Segmenting and Targeting Markets Prepared by Deborah Baker Texas Christian University

  2. Learning Objectives 1. Describe the characteristics of markets and market segments 2. Explain the importance of market segmentation 3. Discuss criteria for successful market segmentation

  3. Learning Objectives (continued) 4. Describe the bases commonly used to segment consumer markets 5. Describe the bases for segmenting business markets 6. List the steps involved in segmenting markets

  4. Learning Objectives (continued) 7. Discuss alternative strategies for selecting target markets 8. Explain one-to-one marketing 9. Discuss the forces that have influenced the emergence of one-to-one marketing

  5. Learning Objectives (continued) 10. Discuss privacy issues related to one-to-one marketing 11. Explain how and why firms implement positioning strategies and how product differentiation plays a role

  6. Market People or organizations with needs or wants and the ability and willingness to buy Market Segment A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Market Segmentation The process of dividing a market into meaningful, relatively similar, identifiable segments or groups. Market Segmentation 1

  7. A Market Is... (1) people or organizations with (2) needs or wants, and with (3) the ability and (4) the willingness to buy. A group of people that lacks any one of these characteristics is not a market. 1

  8. Market segmentation More precise definition of customers needs and wants More accurate marketing objectives Improved resource allocation Better marketing results The Importance of Market Segmentation 2

  9. Substantiality Identifiability/ Measurability Accessibility Responsiveness Criteria for Segmentation 8

  10. Geography Demographics Psychographics Benefits Sought Usage Rate Bases for Segmentation Online http://www.toofaced.com 4

  11. Age MaritalStatus Children Family Life Cycle 4

  12. Personality Motives Lifestyles Geodemographics Bases for Psychographic Segmentation Online http://www.marthastewart.com http://www.goodhousekeeping.com 4

  13. Segmentation Bases Company Characteristics Customer Relationship Buying Processes Business Marketing Segmentation Online http://www.homedepot.com 5

  14. Select a market for study Choosebasesfor segmen-tation Selectdescrip-tors Profileandanalyzesegments Selecttargetmarkets Design,imple-ment,maintainmktingmix Steps in Segmenting a Market 6

  15. Undifferentiated Strategy Concentrated Strategy Multisegment Strategy Strategies for Selecting Target Markets Online http://www.potterybarn.com 7

  16. One-to-One Marketing is... With a Goal of… Strong Relationships Individualized Customer loyalty Information-Intensive Profitability Long-Term Oriented Personalized Cost Reduction What Is One-to-One Marketing? 8

  17. More diverse society More demanding, time-poor consumers Declining brand loyalty Emergence of new media alternatives Demand for marketing accountability Forces Influencing One-to-One Marketing Online http://www.msnbc.com 9

  18. Effective Positioning • Assess the positions occupied by competing products • Determine the dimensions of these positions • Choose an effective market position Online http://www.pg.com 11

  19. Attribute Price and Quality Use or Application Product User Product Class Competitor Emotion Positioning Bases 11

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