1. Chapter 4
Identifying Market Segments and Selecting Target Markets

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

3. 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.

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

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

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

7. Levels of market segmentation
Mass marketing
Segment marketing
Niche marketing

8. micromarketing
Local marketing
Individual Marketing

9. Discussion
1. How do you think the relationship between local marketing and international marketing?
2. How to interpret One –one marketing?
(eg. Del: smart marketing)

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

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

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

13. Segmenting consumer markets(p252)
Geographic Segmentation
Demographic
Psychographic
Behavioral

14. 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

15. Discussion How to choose the segmenting variables?
Consider the following products,please list the segmenting standard for each product and explain the reasons for them.
1.computer; 2.shampoo; 3. Life insurance; 4.book

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

17. 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.

18. 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%

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

20. Five Patterns of Target Market Selection
Selective
specialization
M1 M2 M3 P1 P2 P3
Product
specialization
M1 M2 M3 P1 P2 P3
Single-segment
concentration 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

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

22. 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.

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

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

25. Discussion
How to choose the Target market?

26. 3.Positioning Product position Competitive advantage
Value propositioning

27. Product Position
The way the product is defined by consumers on important attributes----the place the product occupies in consumers’ minds relative to competing product.

28. The BCG Competitive Advantage Matrix
Number of Approaches
to Achieve Advantage
Few
Many
Volume
Specialized
Size of the
Advantage
Small
Large
Stalemated
Fragmented

29. Product Differentiation
Form
Fea-
tures
Perfor-
mance
Quality
Conform-
ance
Quality
Dura-
bility
Relia-
bility
Repair-
ability
Style
Design

30. Services Differentiation
Ordering
Ease
Installation
Customer
Consulting
Miscellaneous
Services
Delivery
Customer
Training
Maintenance
& Repair

31. Differentiation
Personnel
Channel

32. Image Differentiation
Media
Symbols
Atmosphere
Events

33. Differences Worth Establishing
Important
Profitable
Distinctive
Differences Worth
Establishing
Affordable
Superior
Preemptive

34. Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind. P 298

35. Perceptual Map Live shows Easy to reach Little waiting Good food
1.0
0.8
0.6
0.4
0.2
-0.2
-0.4
-0.6
-0.8
Economical
Fun rides
Exercise
Fantasy
Good food
Easy to reach
Educational,
animals
Little waiting
Live shows
Magic
Mountain
Japanese
Deer Park
Busch
Gardens
Knott’s
Berry
Farm
Lion
Country
Safari
Marineland
of the
Pacific
Disneyland

36. Sales & Profit Life Cycles
Time
Sales & profits ($)
Introduction
Growth
Maturity
Decline

37. Four Introductory Marketing Strategies
Price
Low
High
Promotion
Rapid-
skimming
strategy
Slow-
skimming
strategy
Rapid-
penetration
strategy
Slow-
penetration
strategy

38. Case study
香港大班月饼
Background