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7/24/2019 Kotler 14e 08 Segment Target 15 Sept
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8
IdentifyingMarket Segments
and Targets
1
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2
Chapter Questions
hat are the di!!erent le"els o! #ar$et
seg#entation%
Ho& can a co#pany di"ide a #ar$et into
seg#ents% hat are the re'uire#ents !or e!!ecti"e
seg#entation%
Ho& should business #ar$ets be seg#ented% Ho& should a co#pany choose the #ost
attracti"e target #ar$ets%
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-(
Effective Targeting Requires
Identi!y and pro!ile distinct groups o! buyers
&ho di!!er in their needs and pre!erences
)elect one or #ore #ar$et seg#ents to enter
Establish and co##unicate the distincti"e
bene!its o! the #ar$et o!!ering
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-*
What is a Market Segment?
+ market segmentconsists o! a group
o! custo#ers &ho share a si#ilar set o!
needs and &ants.
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Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$erPrepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
Segmentation
Market segmentation is theprocess by &hich a #ar$et is
di"ided into distinct subsets o!
custo#ers &ith si#ilar needsand characteristics that lead
the# to respond in si#ilar &ays
to product o!!erings and
#ar$eting progra#s
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Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$erPrepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
Most Markets are Heterogeneous
ariation a#ong #ar$et seg#ents in Product pre!erences )i4e and gro&th in de#and /edia habits
Co#petitor acti"ities Hence #ar$ets are9
Co#ple: entities that can be de!ined(segmented)in a "ariety o! &ays
5he critical issue is to !ind anappropriate seg#entation #ethod that&ill !acilitate target #ar$eting
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-;
Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$erPrepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
Market Realities Making
Segmentation mperative
!e" reasons#
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-8
Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$erPrepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
$%&ectives of Market Segmentation
5here are three i#portant ob=ecti"esconcerning the #ar$et
seg#entation process
1. Identi!y a ho#ogeneous seg#ent
that di!!ers !ro# other seg#ents
2. )peci!y characteristics that de!ine
the seg#ent
(. >eter#ine seg#ent si4e andpotential
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Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$erPrepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
Ho' are Market Segments (est
)efine*?
)eg#entation decisions are based on9 ho the custo#ers are%
here they are%
Ho& they beha"e%
/ar$eters di"ide seg#entation descriptorsinto !our #a=or categories9
>e#ographic
eographic
?eha"ioral
Psychographic
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-10
Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$er
Prepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
Ho' are Market Segments (est
)efine*?
)eg#entation decisions are based on9 ho the custo#ers are%
here they are%
Ho& they beha"e%
/ar$eters di"ide seg#entation descriptorsinto !our #a=or categories9
>e#ographic
eographic
?eha"ioral
Psychographic
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-11
Segmenting Consumer Markets
eographic
>e#ographic
Psychographic
?eha"ioral
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+eographic Segmentation
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-12
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-1(
Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$er
Prepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
+eographic Segmentation
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-1*
Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$er
Prepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
)emographic Segmentation
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-1
)emographic Segmentation
+ge and li!e cycle
i!e stage
ender
Inco#e
eneration
)ocial class
ace and Culture
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,ge an* -ifec"cle Stage
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-1
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+en*er an* ncome
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+enerational nfluences
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Race an* Culture
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.s"chographic Segmentation
an* The /,-S 0rame'ork
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-20
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Copyright 200 /cra&-Hill +ustralia Pty td
Po&erPoint )lides ta Marketing Strategy: A Decision-Focused Approach by al$erPrepared by +nton 3ri4, 5he 6ni"ersity o! 7e&castle
(ehavioral Segmentation
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(ehavioral Segmentation (ase*
on 1ee*s an* (enefits
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-22
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2(
(ehavioral Segmentation#
)ecision Roles
Initiator
In!luencer
>ecider
?uyer
6ser
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(ehavioral Segmentation#
(ehavioral /aria%les
Bccasions
?ene!its
6ser )tatus 6sage ate
?uyer-eadiness
oyalty )tatus
+ttitude
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2*
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0igure 234 E5ample of a (ran* 0unnel
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2
-o"alt" Status
Hard-core
)plit loyals
)hi!ting loyals
)&itchers
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0igure 236 (ehavioral
Segmentation (reak*o'n
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2;
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-28
Segmenting for (usiness Markets
>e#ographic
Bperating "ariable
Purchasing approaches
)ituational !actors
Personal characteristics
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-2
Steps in Segmentation .rocess
7eed-based seg#entation
)eg#ent identi!ication
)eg#ent attracti"eness
)eg#ent pro!itability
)eg#ent positioning
)eg#ent acid test
/ar$et #i: strategy
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Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-(0
Effective Segmentation Criteria
/easurable
)ubstantial
+ccessible
>i!!erentiable
+ctionable
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.orter7s 8 0orces Mo*el
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-(1
5hreat o! i"alry
5hreat o! )upplier
?argaining Po&er
5hreat o! ?uyer
?argaining Po&er
5hreat o!
7e& Entrants
5hreat o!
)ubstitutes
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0igure 239 .ossi%le -evels
of Segmentation
Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 8-(2
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0or Revie'
hat are the di!!erent le"els o! #ar$et
seg#entation%
Ho& can a co#pany di"ide a #ar$et into
seg#ents% hat are the re'uire#ents !or e!!ecti"e
seg#entation%
Ho& should business #ar$ets be seg#ented% Ho& should a co#pany choose the #ost
attracti"e target #ar$ets%
Copyright 2011 Pearson Education Inc Publishing as Prentice Hall 8-((