1. IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER

2. Market Segmentation
Market segmentation links market needs to an organization’s marketing program

3. Four levels of Micromarketing
Segments
Niches
Local areas
Individuals

4. Niche Marketers : Guerillas against Gorillas
Enterprise Rent-A-Car
targets the insurance-
replacement market

5. Baskin Robbins focuses on Local Marketing and stopped advertising in 2004 to focus on “three-mile marketing”

6. Ways to segment markets
Geographical segmentation
Demographic segmentation
Most popular segmentation
Psychographic segmentation
Lifestyle, social class, and personality-based segmentation
Behavioral segmentation
Goal 2: List and discuss major bases for segmentation

7. Geographic Segmentation Variables
World region or country
U.S. region
State
City
Neighborhood
City or metro size
Density
Climate
Goal 2: List and discuss major bases for segmentation

8. Demographic Segmentation Variables
Age
Gender
Family size
Family life cycle
Income
Occupation
Education
Religion
Race
Generation
Nationality
Goal 2: List and discuss major bases for segmentation

9. Behavioral Segmentation Variables
Occasions
Benefits
User status
User rates
Loyalty status
Readiness stage
Attitude toward the product
Goal 2: List and discuss major bases for segmentation

10. Criteria to Use in Forming the Segments
Measurable
Size, purchasing power, and profile of segment
Accessible
Can be reached and served
Substantial
Large and profitable enough to serve
Differentiable
Respond differently
Actionable
Effective programs can be developed

11. Positioning
The place the product occupies in consumers’ minds relative to competing products
Typically defined by consumers on the basis of important attributes
Involves implanting the brand’s unique benefits and differentiation in the customer mind
Positioning maps that plot perceptions of brands are commonly used

12. A perceptual map to suggest a strategy for positioning chocolate milk to reach adults

13. Market Segmentation
Market segmentation involves aggregating prospective into groups that (1) have common needs and (2) will respond similarly to a marketing action.
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14. Product Differentiation
Product differentiation is a strategy that involves a firm’s using different marketing mix activities to help consumers perceive the product as being different and better than competing products.
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15. Market-Product Grid
A market-product grid is a framework to relate the segments of a market to products offered or potential marketing actions by the firm.
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16. Usage Rate
The usage rate is the quantity consumed or patronage during a specific period of time.
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17. 80/20 Rule
The 80/20 rule is a concept that suggests 80 percent of a firm’s sales are obtained from 20 percent of its customers.
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18. Product Positioning
Product positioning refers to the place an offering occupies in consumers’ minds on important attributes relative to competitive offerings.
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19. Perceptual Map
A perceptual map is a means of displaying or graphing in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how consumers perceive competing products or brands and then take marketing actions.
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