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Levels of Market Segmentation

Levels of Market Segmentation. JohnV . Balanquit. Mass Marketing. Mass production, mass distribution, and mass promotion to create largest potential market, thus reducing cost resulting to lower prices or higher profits. Micromarketing.

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Levels of Market Segmentation

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  1. Levels of Market Segmentation JohnV. Balanquit

  2. Mass Marketing • Mass production, mass distribution, and mass promotion to create largest potential market, thus reducing cost resulting to lower prices or higher profits.

  3. Micromarketing • Adopting strategies that will reach segments, niches, local areas or individuals

  4. Segment Marketing • Addressing to the needs of a group of customers who share similar needs and wants

  5. Segment Marketing • Flexible market offering • A process which contains two parts, a naked solution containing the product and service element that all segment members value and a discretionary option that some segment members value • Homogeneous preferences • All members roughly have the same preference

  6. Segment Marketing • Diffused preferences • Members have varied preferences • Clustered preferences • Natural market segments emerge from groups of customers with shared preferences

  7. Niche Marketing • Addressing to needs of a narrowly defined customer group seeking distinctive mix of benefits. This is done by dividing segments into subsegments

  8. Local Marketing • Preparing marketing programs tailored to the needs and wants of local customer groups in trading areas, neighborhoods, or individual stores

  9. Individual Marketing • Also termed “segments of one”, “customized marketing”, or “one-to-one marketing”

  10. Individual Marketing • Customerization • Empowering customers to design the product and service offering of their choice

  11. Bases for Segmenting Customer Markets • Geographical Segmentation • Dividing the market into different geographical units such as nations, regions, countries, cities, or neighborhoods • Demographic Segmentation • Dividing the market into groups based on variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class

  12. Bases for Segmenting Customer Markets • Psychographic Segmentation • Dividing the market into different groups on the basis of personality traits, lifestyle, or values. This method uses data from demographics and psychology • VALS • This system classifies people into 8 groups: innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors

  13. Bases for Segmenting Customer Markets • Behavioral Segmentation • Buyers are groups according to their knowledge of, attitude towards, use of, or response to a product. This method is affected by two factors, the decision role and the behavioral variables

  14. Decision roles- initiator, influencer, decider, buyer, user. • Behavioral Variables- occasions, benefits, user status, usage rate, buyer-readiness stage, loyalty status, and attitude

  15. The Conversion Model • It measures the strength of consumers’ psychological commitment to brands and their opened to change. Users are grouped as convertible, shallow, average and entrenched. Non-users are grouped as strongly unavailable, weakly unavailable, ambivalent, and available.

  16. Bases of Segmenting Business Markets • Demographic • Industry • Company size • Location • Operating Variables • Technology • User or Non-user status • Customer capabilities

  17. Bases of Segmenting Business Markets • Purchasing Approaches • Purchasing- function organization • Power structure • Nature of existing relationship • General purchasing policies • Purchasing criteria

  18. Bases of Segmenting Business Markets • Situational Factors • Urgency • Specific application • Size or order • Personal Characteristics • Buyer-seller similarity • Attitude toward risk • Loyalty

  19. Market Targeting • This process is the selection of a particular market after identifying segment opportunities.

  20. Steps in Needs-based Market Segmentation Approach by Roger Best

  21. Market Targeting • Effective Segmentation Criteria • Measurable • Substantial • Accessible • Differentiable • Actionable

  22. Market Targeting • Evaluating and Selecting the Market Segment

  23. Market Targeting

  24. Market Targeting

  25. Additional Consideration • Segment by Segment Invasion Plan

  26. Additional Consideration • Megamarketing • The strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market.

  27. Additional Consideration • Ethical Choice of Market Targets

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