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Segments and Selecting

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Presentation on theme: "Segments and Selecting"— Presentation transcript:

1 Segments and Selecting
Chapter 9 Identifying Market Segments and Selecting Target Markets Marketing Management Tenth Edition Philip Kotler

2 Objectives Identifying Market Segments Choosing Target Markets

3 Steps in Market Segmentation, Targeting,and Positioning
1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Segmentation 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Targeting 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen concept Market Positioning

4 Basic Market-Preference Patterns
(a) Homogeneous preferences Sweetness Creaminess (b) Diffused preferences Creaminess Sweetness (c) Clustered preferences Creaminess Sweetness

5 Market-Segmentation Procedure
Survey Motivations Attitudes Behavior Analysis Factors Clusters Profiling

6 Bases for Segmenting Consumer Markets
Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ... Lifestyle or Personality Psychographic Occasions, Benefits, Uses, or Attitudes Behavioral

7 Bases for Segmenting Business Markets
Demographic Operating Variables Purchasing Approaches Situational Factors Personal Characteristics

8 Effective Segmentation
Measurable Effective Segmentation Substantial Size, purchasing power, profiles of segments can be measured. Accessible Segments must be large or profitable enough to serve. Differential Segments can be effectively reached and served. Actionable Segments must respond differently to different marketing mix elements & actions. Must be able to attract and serve the segments.

9 Heavy and Light Users of Common Consumer Products
HEAVY HALF LIGHT HALF PRODUCT (% USERS) 75% 71% Soups and detergents (94%) 25% 29% 79% 21% Toilet tissue (95%) Shampoo (94%) 75% 25% 17% Paper towels (90%) Cake mix (74%) Cola (67%) 83% 13% 5% 87% 19% Beer (41%) Dog food (30%) Bourbon (20%) 81% 95%

10 Additional Segmentation Criteria
Ethical Choice of Market Targets Segment Interrelationships & Supersegments Segment-by-Segment Invasion Plans Intersegment Cooperation

11 Five Patterns of Target Market Selection
Single-segment concentration Selective specialization M1 M2 M3 P1 P2 P3 Product specialization M1 M2 M3 P1 P2 P3 P1 P2 P3 M1 M2 M3 P = Product M = Market Market specialization M1 M2 M3 P1 P2 P3 M1 M2 M3 Full market coverage P1 P2 P3

12 Segment-by-Segment Invasion Plan
Customer Groups Truckers Railroads Airlines Company B Company C Company A Large computers Product Varieties Personal Mid-size

13 Review Identifying Market Segments Choosing Target Markets

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