Presentation is loading. Please wait.

Presentation is loading. Please wait.

Levels of Market Segmentation

Similar presentations

Presentation on theme: "Levels of Market Segmentation"— Presentation transcript:

1 Levels of Market Segmentation
JohnV. Balanquit

2 Mass Marketing Mass production, mass distribution, and mass promotion to create largest potential market, thus reducing cost resulting to lower prices or higher profits.

3 Micromarketing Adopting strategies that will reach segments, niches, local areas or individuals

4 Segment Marketing Addressing to the needs of a group of customers who share similar needs and wants

5 Segment Marketing Flexible market offering Homogeneous preferences
A process which contains two parts, a naked solution containing the product and service element that all segment members value and a discretionary option that some segment members value Homogeneous preferences All members roughly have the same preference

6 Segment Marketing Diffused preferences Clustered preferences
Members have varied preferences Clustered preferences Natural market segments emerge from groups of customers with shared preferences

7 Niche Marketing Addressing to needs of a narrowly defined customer group seeking distinctive mix of benefits. This is done by dividing segments into subsegments

8 Local Marketing Preparing marketing programs tailored to the needs and wants of local customer groups in trading areas, neighborhoods, or individual stores

9 Individual Marketing Also termed “segments of one”, “customized marketing”, or “one-to-one marketing”

10 Individual Marketing Customerization
Empowering customers to design the product and service offering of their choice

11 Bases for Segmenting Customer Markets
Geographical Segmentation Dividing the market into different geographical units such as nations, regions, countries, cities, or neighborhoods Demographic Segmentation Dividing the market into groups based on variables such as age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class

12 Bases for Segmenting Customer Markets
Psychographic Segmentation Dividing the market into different groups on the basis of personality traits, lifestyle, or values. This method uses data from demographics and psychology VALS This system classifies people into 8 groups: innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors


14 Bases for Segmenting Customer Markets
Behavioral Segmentation Buyers are groups according to their knowledge of, attitude towards, use of, or response to a product. This method is affected by two factors, the decision role and the behavioral variables

15 Decision roles- initiator, influencer, decider, buyer, user.
Behavioral Variables- occasions, benefits, user status, usage rate, buyer-readiness stage, loyalty status, and attitude

16 The Conversion Model It measures the strength of consumers’ psychological commitment to brands and their opened to change. Users are grouped as convertible, shallow, average and entrenched. Non-users are grouped as strongly unavailable, weakly unavailable, ambivalent, and available.


18 Bases of Segmenting Business Markets
Demographic Industry Company size Location Operating Variables Technology User or Non-user status Customer capabilities

19 Bases of Segmenting Business Markets
Purchasing Approaches Purchasing- function organization Power structure Nature of existing relationship General purchasing policies Purchasing criteria

20 Bases of Segmenting Business Markets
Situational Factors Urgency Specific application Size or order Personal Characteristics Buyer-seller similarity Attitude toward risk Loyalty

21 Market Targeting This process is the selection of a particular market after identifying segment opportunities.

22 Steps in Needs-based Market Segmentation Approach by Roger Best

23 Market Targeting Effective Segmentation Criteria Measurable
Substantial Accessible Differentiable Actionable

24 Market Targeting Evaluating and Selecting the Market Segment

25 Market Targeting

26 Market Targeting

27 Additional Consideration
Segment by Segment Invasion Plan

28 Additional Consideration
Megamarketing The strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market.

29 Additional Consideration
Ethical Choice of Market Targets

Download ppt "Levels of Market Segmentation"

Similar presentations

Ads by Google