Module 3: Analyzing Markets

and Segmentation

Sreedhar Madhavaram
Alumni Professor of Marketing

Module 3 Objectives
• Module 3 contains four chapters: 6. Analyzing Consumer
Markets; 7. Analyzing Business Markets; 8. Tapping into
Global Markets and 9. Identifying Market Segments and
Targets
• I will go through the summaries of chapters in terms concepts,
conceptual frameworks, and theories
• Also, the slides for the chapters and Key Takeaways from the
chapters are provided on Blackboard
• Finally, a presentation on Market Segmentation (MS) Strategy
is available (please note that MS strategy is a part of Module 7,
and is not included in the Module 3 quiz. Rather, it will be
included in the Module 7 quiz.)

Concepts, Conceptual Frameworks, and

Theories from Chapter 6
• Concepts: Cultural, social, and personal factors that influence
buying behavior; Key psychological processes (motivation,
perception, learning, and memory)
• Conceptual frameworks: The Stimulus-Response Model of
Consumer Behavior (Figure 6.1); The Five-Stage Buying
Decision Process (Problem recognition; Information search;
Evaluation of alternatives; Purchase decision; Post purchase
behavior); Steps between Evaluation of Alternatives and a
Purchase Decision
• Theories: Freud’s Theory; Maslow’s Theory; Herzberg’s
Theory; Behavioral Decision Theory (irrational choices;
decision heuristics; framing; mental accounting (prospect
theory))

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 Concepts and Conceptual Frameworks
from Chapter 7
• Concepts: Business Vs. Consumer Markets; Buying situations:
The buying center; Buying center influences; B2B customer
relationship management; Institutional and Government
markets
• Conceptual Frameworks: The Eight-Stage Buying Decision
Process (Problem recognition; General need description;
Product specification; Supplier search; Proposal solicitation;
Supplier selection; Order-routine specification; and
Performance review); Development of effective B2B
marketing programs (Communication and branding activities;
Systems buying and selling (systems contracting); Services)
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Concepts and Conceptual Frameworks

from Chapter 8
• Concepts: Domestic market characteristics; Risk assessment;
Internationalization process; Marketing strategies for
developing markets; Modes of entry (Indirect and direct
export; Licensing; Joint Ventures; Direct investment;
Acquisition); Hofstede’s cultural dimensions; Country-of-
origin effects
• Conceptual Frameworks: Major Decisions in International
Marketing (Figure 8.1); International marketing program
(Standardized marketing program; Global similarities and
dissimilarities; Marketing adaptation; Global product
strategies; Global communication strategies; Global pricing
strategies; Global distribution strategies); Hofstede’s cultural
dimensions (Individualism vs. collectivism; High vs. low
power distance; Masculine vs. feminine; Weak vs. strong
uncertainty avoidance)

Concepts and Conceptual Frameworks

from Chapter 9
• Concepts: STP; Bases for segmenting consumer markets (e.g.,
PRIZM; ACORN); Bases for segmenting business markets;
Multicultural marketing
• Conceptual frameworks:
- Steps in segmentation process
- Effective segmentation criteria
- Porter’s 5 forces framework