1. Sultan Ahmed www.studyandjobs24.com1 Topic 05

2. Sultan Ahmed www.studyandjobs24.com2 You would be able to answer the following questions after reading the chapter: Definitions: segment marketing, customerization, What are the different levels/steps of market segmentation? In what ways can a company divide a market into segments? Explain the characteristics of demographic segmentation with examples. Explain the characteristics of behavioral segmentation with examples. What are the requirements for effective segmentation? How should business markets be segmented? How should a company choose the most attractive target markets? How market coverage strategies influence market targeting? Learning Goals of the Topic

3. Sultan Ahmed www.studyandjobs24.com3 Effective Targeting Requires… Identify and profile distinct groups of buyers who differ in their needs and preferences. Select one or more market segments to enter. Establish and communicate the distinctive benefits of the market offering.

4. Sultan Ahmed www.studyandjobs24.com4 Steps in Market Segmentation, Targeting, and Positioning Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment

5. Sultan Ahmed www.studyandjobs24.com5 Four levels of Micromarketing Segments Local areasIndividuals Niches

6. Sultan Ahmed www.studyandjobs24.com6 Segment Marketing Targeting a group of customers who share a similar set of needs and wants.

7. Sultan Ahmed www.studyandjobs24.com7 Basic Market Preference Patterns

8. Sultan Ahmed www.studyandjobs24.com8 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.

9. Sultan Ahmed www.studyandjobs24.com9 Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral

10. Sultan Ahmed www.studyandjobs24.com10

11. Sultan Ahmed www.studyandjobs24.com11 Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class

12. Sultan Ahmed www.studyandjobs24.com12 Behavioral Segmentation Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude

13. Sultan Ahmed www.studyandjobs24.com13 Behavioral Segmentation Breakdown

14. Sultan Ahmed www.studyandjobs24.com14 Segmenting for Business Markets Demographic Operating Variable Purchasing Approaches Situational Factors Personal Characteristics Personal Characteristics

15. Sultan Ahmed www.studyandjobs24.com15 Segmenting for Business Markets Demographic segmentation –Industry, company size, location Operating variables –Technology, usage status, customer capabilities Purchasing approaches Situational factors –Urgency, specific application, size of order Personal characteristics –Buyer-seller similarity, attitudes toward risk, loyalty

16. Sultan Ahmed www.studyandjobs24.com16 Size, purchasing power, profiles of segments can be measured. Segments can be effectively reached and served. Segments are large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable Segments must respond differently to different marketing mix elements & programs. Effective programs can be designed to attract and serve the segments. Effective Segmentation Criteria

17. Sultan Ahmed www.studyandjobs24.com17 Market Targeting Evaluating Market Segments Segment Size and Growth –Analyze current sales, growth rates and expected profitability for various segments. Segment Structural Attractiveness –Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers. Company Objectives and Resources –Company skills & resources needed to succeed in that segment(s). –Look for Competitive Advantages.

18. Sultan Ahmed www.studyandjobs24.com18 Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 2 Company Marketing Mix 3 Company Marketing Mix 3 Market A. Undifferentiated Marketing B. Differentiated Marketing C. Concentrated Marketing Market Targeting Market Coverage Strategies

19. Sultan Ahmed www.studyandjobs24.com19 Patterns of Target Market Selection

20. Sultan Ahmed www.studyandjobs24.com20 Patterns of Target Market Selection

21. Sultan Ahmed www.studyandjobs24.com21 Patterns of Target Market Selection