1. 8 Identifying Market Segments and Targets
MARKETING MANAGEMENT 8
Identifying Market
Segments and
Targets

2. Chapter Questions
What are the different levels of market segmentation?
How can a company divide a market into segments?
How should a company choose the most attractive target markets?
What are the requirements for effective segmentation?

3. Mature consumers are a rapidly growing market

4. 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.

5. A Mass Market Approach

6. General Motors Alfred P. Sloan “A car for every purse and purpose”
Cadillac
Oldsmobile
Pontiac
Buick
Chevrolet

12. Another positioning strategy was Volkswagen (1959), the first small car in the North American market, and lasted through the energy crisis of the 1970s.

13. Mercedes
Which, of course, contrasts with that for Mercedes. What is MERCEDES USP?

14. Volvo
What is Volvos USP?

15. Volvo
Another execution

16. Four levels of Micromarketing
Segments
Niches
Local areas
Individuals

17. Basic Market Preference Patterns

18. 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.

19. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioural

20. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class

21. Toyota Scion targets Gen Y consumers

22. Models of Sequential Segmentation
Stage of decision
First-time prospects
Novices
Sophisticates
Orientation
Price-oriented
Solution-oriented
Strategic-value

23. Patterns of Target Market Selection

24. Patterns of Target Market Selection

25. Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable