Kotler MM 14e 08 Ippt GE

7/28/2019 Kotler MM 14e 08 Ippt GE

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8

Identifying Market

Segments and Targets

1


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Copyright 2012 Pearson Education 8-2

Chapter Questions

What are the different levels of market

segmentation?

How can a company divide a market into

segments? What are the requirements for effective

segmentation?

How should business markets be segmented? How should a company choose the most

attractive target markets?


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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 distinctivebenefits of the market offering


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What is a Market Segment?

A market segment consists of a group

of customers who share a similar set of

needs and wants.


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Segmenting Consumer Markets

Geographic

Demographic

Psychographic

Behavioral


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Geographic Segmentation



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Claritas Prizm

Education and affluence

Family life cycle

Urbanization

Race and ethnicity

Mobility


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Demographic Segmentation

Age and life cycle

Life stage

Gender

Income

Generation

Social class

Race and Culture


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Age and Lifecycle Stage



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Gender and Income



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Generational Influences



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Race and Culture



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Psychographic Segmentation

and The VALS Framework



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Behavioral Segmentation Based

on Needs and Benefits



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Behavioral Segmentation:

Decision Roles

Initiator

Influencer

Decider

Buyer

User


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Behavioral Segmentation:

Behavioral Variables

Occasions

Benefits

User Status

Usage Rate

Buyer-Readiness

Loyalty Status

Attitude



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Figure 8.2 Example of a Brand Funnel



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Loyalty Status

Hard-core

Split loyals

Shifting loyals

Switchers


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Figure 8.3 Behavioral

Segmentation Breakdown



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Segmenting for Business Markets

Demographic

Operating variable

Purchasing approaches

Situational factors

Personal characteristics


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Steps in Segmentation Process

Need-based segmentation

Segment identification

Segment attractiveness

Segment profitability

Segment positioning

Segment acid test

Market mix strategy


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Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable


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Porters 5 Forces Model


Threat of Rivalry

Threat of Supplier

Bargaining Power

Threat of Buyer

Bargaining Power

Threat of

New Entrants

Threat of

Substitutes


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Figure 8.4 Possible Levels

of Segmentation



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For Review

What are the different levels of market

segmentation?

How can a company divide a market into

segments? What are the requirements for effective

segmentation?

How should business markets be segmented? How should a company choose the most

attractive target markets?


Documents

Kotler MM 14e 08 Ippt GE