Chapter 8 Segmenting and Targeting Markets. What are Markets?. Market: people or organizations with (1)…………., (2)…………., and (3)………………………… Types of Markets . Role of Market Segmentation. Market Segmentation: division of the total market into smaller, relatively homogeneous groups
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Measurability / Identifiability
ResponsivenessCriteria for Effective Segmentation
Characteristics of individuals, groups, or organizations used to divide a total market into segments=(variables, bases)
Usage RateBases for Segmentation
Metropolitan Statistical Area (MSA)
ChildrenFamily Life Cycle
Segmenting potential customers into neighborhood lifestyle categories. Combines geographic, demographic, and psychographic segmentation.
The process of grouping customers into market segments according to the …………..they seek from the product.
Cell phone carriers, L’Oreal, Weight watchers
Dividing a market by the ………….of product bought or consumed.
Sprint- fired customers for excessive use of CS
InstitutionsBases for Segmenting Business Markets
Select a market for study
Note that steps 5 and 6 are actually marketing activities that follow market segmentation (steps 1 through 4).
Identify the Appropriate Targeting Strategy
Single Marketing Mix
Sugar, flour, commodities
Marketing Mix 1
Marketing Mix 2
Best Buy, Walmart, Gap
Single Marketing Mix
Situation that occurs when sales of a new product cut into sales of a firm’s existing products.
STRATEGIES FOR REACHING TARGET MARKETS sales of a firm’s existing products.
An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer.
- ‘share of customer’One-to-One Marketing
Al Ries and Jack Trout (1981)
Brand information to build long-term, personalized, and profitable relationships with each customer.
Tough, powerful cleaning
Tough cleaning, color protection
Detergent plus fabric softener
Sunshine scent and odor-removing formula
Stain treatment and stain removal
Bleach-boosted formula, whitening
Detergent and fabric softener in liquid form
Outstanding cleaning for baby clothes, safe
Fabric & skin safety on baby clothes
Tough cleaner, aimed at Hispanic market
0.1%Positioning of Procter & Gamble Detergents
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds.Perceptual Mapping
Expensive dimensions, the location of products, brands, or groups of products in customers’ minds.
InexpensivePerceptual Maps (Price/Quality)
High moisturizing dimensions, the location of products, brands, or groups of products in customers’ minds.
Low moisturizingProduct Positioning using perceptual maps
Changing consumers’ perceptions of a brand in relation to competing brands.Repositioning
Positioning and Product Differentiation competing brands.