Ch 9

Market segmentation: 4-

1. Geographic
2. Demographic
3. Psychographic
4. Behavioral-
 Occasion
 User status-
 Usage rate
 Loyalty status-
1. Hard-core loyals- buy only one brand all the time
2. Split loyals—loyal to two or three brands
3. Shifting loyals— shift loyalty from one brand to another
4. Switchers- no loyalty to any brand

Market segment types:

1. Full market coverage- serve all customer groups with all
the products they might need. only very large firms such as Microsoft (software market), General
Motors (vehicle
market), and Coca-Cola (nonalcoholic beverage market) can undertake a full market coverage
strategy. Two types-

 Undifferentiated or mass mkt- ignores segment differences and goes after the whole market
with one offer. Designs a mkt program for one product with superior image via mass
communication and distribution
 Differentiated mkt- Firm sells diff product to diff segments.
Eg- estee lauder serves to both male and female. Also a part to old aged customers

2. Multiple segment specialization- Divides target audience into multiple groups with similar
preferences and demographics. Eg- snack food manufacturer may make a product line targeted
towards health-conscious consumers under a different brand name.

3. Product specialization- Firm sells a certain product to diff market segments. Eg- iron sold to make
building for gov or schools.

4. Market specialization- Many needs of a particular customer with assortment of products eg only
to uni labs

5. Single segment concentration- Sells to only one segment. Eg- porche to sport car enthusiasts

effective segmentation

 Measurable: The Size, purchasing power and profiles of the segments can be measured. 
 Accessible: Consumers are easily reached at an affordable cost. This helps determine how
certain ads can reach different target markets and how to make ads more profitable. 
 Substantial: Profitable and large enough to serve. 
 Differentiable:  Target markets respond differently to different marketing strategies. If a
business is only targeting one segment, then this might not be as much of an issue. 
 Actionable: Effective programs can be formulated for attracting and serving the segments