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FIGURE 9-1 Market segmentation—linking market needs to an organization’s marketing program

FIGURE 9-1 Market segmentation—linking market needs to an organization’s marketing program. WHY SEGMENT MARKETS?. What Market Segmentation Means. How Reebok’s Segmentation Strategy Developed. Using Market-Product Grids.

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FIGURE 9-1 Market segmentation—linking market needs to an organization’s marketing program

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  1. FIGURE 9-1Market segmentation—linking market needs to an organization’s marketing program

  2. WHY SEGMENT MARKETS? • What Market Segmentation Means • How Reebok’s Segmentation Strategy Developed • Using Market-Product Grids

  3. FIGURE 9-2Market-product grid showing how different Reebok shoes reach segments of customers with different needs

  4. FIGURE 9-3The five key steps in segmenting and targeting markets link market needs of customers to the organization’s marketing program

  5. STEPS IN SEGMENTING AND TARGETING MARKETS • Step 1: Group Potential Buyers into Segments • Criteria to Use in Forming the Segments • Potential for Increased Profit • Similarity of Needs of Buyers within a Segment • Difference of Needs of Buyers Among Segments • Potential of a Marketing Action to Reach a Segment • Simplicity and Cost of Assigning Buyers to Segments

  6. STEPS IN SEGMENTING AND TARGETING MARKETS • Step 1: Group Potential Buyers into Segments • Ways to Segment Consumer Markets • Customer Characteristics • Geographic: Region • Demographic: Household • Psychographic: Lifestyle

  7. STEPS IN SEGMENTING AND TARGETING MARKETS • Step 1: Group Potential Buyers into Segments • Ways to Segment Consumer Markets • Buying Situations • Benefits Sought: Product Features • Usage/Patronage: Usage Rate • Frequency Marketing • 80/20 Rule

  8. FIGURE 9-B Segmentation variables and breakdowns for U.S. consumer markets

  9. FIGURE 9-C Patronage of fast-food restaurants by adults 18 years and older: Simmons Market Research Bureau NCS/NHCS Spring 2004 Adult Full-Year Choices System Crosstabulation Report

  10. STEPS IN SEGMENTING AND TARGETING MARKETS • Step 1: Group Potential Buyers into Segments • Variables to use in Forming Segments • Students in Dorms • Faculty/Staff • Students in Apartments • People Living in Area • Day Commuters • People Working in Area • Night Commuters

  11. STEPS IN SEGMENTING AND TARGETING MARKETS • Step 2: Group Products to be Soldinto Categories • Step 3: Develop a Market-Product Grid and Estimate Size of Markets

  12. FIGURE 9-5Selecting a target market for your Wendy’s fast-food restaurant next to an urban university (target market is shaded)

  13. STEPS IN SEGMENTING AND TARGETING MARKETS • Step 4: Select Target Markets • Criteria to Use in Picking the Target Segments • Market Size • Cost of Reaching Segment • Expected Growth • Compatibility with theOrganization’s Objectivesand Resources • Competitive Position • Choose the Segments

  14. STEPS IN SEGMENTING AND TARGETING MARKETS • Step 5: Take Marketing Actions to Reach Target Markets • Your Wendy’s Segmentation Strategy • Day Commuters • Between-Meal Snacks • Dinner to Night Students

  15. Wendy’sHow can Wendy’s target different market segments with different advertising programs?

  16. FIGURE 9-6 Advertising actions to reach specific student segments

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