Chapter 4 Identifying Market Segments and Selecting Target Markets

The Learning Objectives Levels and Patterns of Marketing Segmentation Marketing Target Positioning Strategy

Market Segmentation Dividing a market into distinct groups of buyers on the basis of needs,characteristics,or behavior who might require separate products or marketing mixes.

Segment Market A group of consumers who respond in a similar way to a given set of marketing effort.

Market targeting The process of evaluating each market segment ’ s attractiveness and selecting one or more segment to enter.

Marketing positioning Arranging for a product to occupy a clear,distinctive, and desirable place relative to competing products in the minds of target consumers.

Steps in market segmentation,targeting,and positioning Market Segmentation 1.Identify bases for segmenting the market 2.Develop segment profile 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

Levels of market segmentation Mass marketing Segment marketing Niche marketing

micromarketing Local marketing Individual Marketing

Segmenting consumer markets(p252) Geographic Segmentation Demographic Psychographic Behavioral

2.Market Targeting Target market Undifferentiated marketing Differentiated marketing Concentrated Marketing

Undifferentiated Marketing A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

Differentiated marketing AA market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.

Concentrated marketing A market-coverage strategy in which a firm goes after a large share of one or a few submarkets.

3.Positioning Product position Competitive advantage Value propositioning

Case study 香港大班月饼 Background