To accompany A Framework for Marketing Management, 2nd Edition Slide 1 in Chapter 9 © 2003 Prentice Hall, Inc. Chapter 9 Chapter 9 Identifying Market Identifying Market Segments and Selecting Segments and Selecting Target Markets Target Markets PowerPoint by Karen E. James PowerPoint by Karen E. James Louisiana State University - Shreveport Louisiana State University - Shreveport To accompany A Framework for Marketing Management, 2nd Edition Slide 2 in Chapter 9 © 2003 Prentice Hall, Inc. Objectives Objectives Learn how companies identify the segments that make up a market. Understand the criteria companies use to choose the most attractive market segments. To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 9 © 2003 Prentice Hall, Inc. Target Marketing Target Marketing Target marketing requires marketers to take three major steps: – Market segmentation: Identifying and profiling distinct groups of buyers who differ in their needs and preferences. – Market targeting: Selecting one or more market segments to enter. – Market positioning: Establishing and communicating the key distinctive benefit(s) of the company’s market offering to each target. To accompany A Framework for Marketing Management, 2nd Edition Slide 4 in Chapter 9 © 2003 Prentice Hall, Inc. Using Market Segmentation Using Market Segmentation Mass marketing is losing popularity Micromarketing can be undertaken at four levels: – Segment marketing – Niche marketing – Local marketing – Individual marketing To accompany A Framework for Marketing Management, 2nd Edition Slide 5 in Chapter 9 © 2003 Prentice Hall, Inc. Using Market Segmentation Using Market Segmentation Three patterns of preference segments are typically identified: – Homogeneous preferences – Diffused preferences – Clustered preferences To accompany A Framework for Marketing Management, 2nd Edition Slide 6 in Chapter 9 © 2003 Prentice Hall, Inc. Using Market Segmentation Using Market Segmentation Needs-based segmentation Segment identification Segment attractiveness Segment profitability Segment positioning Segment “acid test” Marketing-mix strategy Needs-based Segmentation Process To accompany A Framework for Marketing Management, 2nd Edition Slide 7 in Chapter 9 © 2003 Prentice Hall, Inc. Using Market Segmentation Using Market Segmentation Useful market segments share certain characteristics: – Measurable – Substantial – Accessible – Differentiable – Actionable To accompany A Framework for Marketing Management, 2nd Edition Slide 8 in Chapter 9 © 2003 Prentice Hall, Inc. Segmenting Consumer Markets Segmenting Consumer Markets Bases for Segmentation Geographic Demographic Psychographic Behavioral Nation or country State or region City or metro size Density Climate To accompany A Framework for Marketing Management, 2nd Edition Slide 9 in Chapter 9 © 2003 Prentice Hall, Inc. Segmenting Consumer Markets Segmenting Consumer Markets Bases for Segmentation Geographic Demographic Psychographic Behavioral Age, race, gender Income, education Family size Family life cycle Occupation Religion, nationality Generation Social class To accompany A Framework for Marketing Management, 2nd Edition Slide 10 in Chapter 9 © 2003 Prentice Hall, Inc. Segmenting Consumer Markets Segmenting Consumer Markets Bases for Segmentation Geographic Demographic Psychographic Behavioral Lifestyle – Activities – Interests – Opinions Personality Core values [...]... attractiveness in light of company’s objectives and resources Five patterns of target market selection can then be considered ©2003 Prentice Hall, Inc To accompany A Framework for Slide 15 in Market Targeting Strategies Patterns of Target Market Selection Single-segment concentration Product specialization Selective specialization Market specialization Full market coverage ©2003 Prentice Hall, Inc... buyers into three groups: – Price-oriented customers: best served via transactional selling – Solution-oriented customers: best served by means of consultative selling – Strategic-value customers: best served by means of enterprise selling ©2003 Prentice Hall, Inc To accompany A Framework for Slide 14 in Market Targeting Strategies Evaluating and selecting market segments requires assessing the segment’s... specialization Market specialization Full market coverage ©2003 Prentice Hall, Inc To accompany A Framework for Slide 16 in Market Targeting Strategies Targeting multiple segments may result in cost economies Supersegment targeting may be appropriate Blocked markets often require megamarketing countermeasures Be aware of ethical concerns ©2003 Prentice Hall, Inc To accompany A Framework for Slide... Consumer Markets Bases for Segmentation Geographic Demographic Occasions Benefits User status Usage rate Loyalty status Psychographic Buyer-readiness Behavioral Attitude ©2003 Prentice Hall, Inc To accompany A Framework for Slide 11 in Segmenting Consumer Markets Multi-attribute segmentation via geoclustering combines multiple variables to identify smaller, betterdefined target. .. geographic, lifestyle, and behavioral characteristics ©2003 Prentice Hall, Inc To accompany A Framework for Slide 12 in Segmenting Business Markets Bases for Segmentation Operating variables Situational factors Purchasing Personal approaches characteristics Demographic variables ©2003 Prentice Hall, Inc To accompany A Framework for Slide 13 in Segmenting Business Markets Rackman and Vincentis proposed . for Marketing Management, 2nd Edition Slide 1 in Chapter 9 © 2003 Prentice Hall, Inc. Chapter 9 Chapter 9 Identifying Market Identifying Market Segments and Selecting Segments and Selecting. attractive market segments. To accompany A Framework for Marketing Management, 2nd Edition Slide 3 in Chapter 9 © 2003 Prentice Hall, Inc. Target Marketing Target Marketing Target marketing. Framework for Marketing Management, 2nd Edition Slide 15 in Chapter 9 © 2003 Prentice Hall, Inc. Market Targeting Strategies Market Targeting Strategies Evaluating and selecting market segments