1. Segmentation and Targeting
Dr. Ananda Hussein

2. Ford’s Model T Followed a Mass Market Approach

3. Four levels of Micromarketing
Segments
Niches
Local areas
Individuals

4. What is a Market Segment?
A market segment consists of a group of customers who share a similar set of needs ad wants.
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5. Preference Segments
Homogeneous preferences exist when consumers want the same things
Diffused preferences exist when consumers want very different things
Clustered preferences reveal natural segments from groups with shared preferences

6. Niche Marketers Enterprise Rent-A-Car targets the insurance-
replacement market

7. What is Customerization?
Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.
Video icon links to Marriott snippet on offering different brands for specific segments.

8. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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9. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class

10. Toyota Scion Targets Gen Y Consumers
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11. Dove Targets Women

12. The VALS Segmentation System

13. Behavioral Segmentation
Decision Roles
Initiator
Influencer
Decider
Buyer
User
Behavioral Variables
Occasions
Benefits
User Status
Usage Rate
Buyer-Readiness
Loyalty Status
Attitude

14. Loyalty Status Split loyals Shifting loyals Switchers Hard-core
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15. Behavioral Segmentation Breakdown

16. Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal
Characteristics

17. Steps in Segmentation Process
Needs-based segmentation
Segment identification
Marketing-Mix
Strategy
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test

18. Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable

19. Patterns of Target Market Selection

20. Figure 8.4 Patterns of Target Market Selection

21. Patterns of Target Market Selection
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22. Figure 8.5 Segment-by-Segment Invasion Plan

23. Pepsi used Megamarketing in India

24. Marketing Debate Is mass marketing dead? Take a position:
Mass marketing is dead. or
2. Mass marketing is still a viable way to build
a profitable brand.