Professional Documents
Culture Documents
Segmen & Target
Segmen & Target
Market Segments
and Targets
kul 11
Chapter Questions
What are the different levels of
market segmentation?
How can a company divide a market
into segments?
How should a company choose the
most attractive target markets?
What are the requirements for
effective segmentation?
2
Market Segmentation is not
the same thing as Customer
Segmentation
mmd/UM/Kotler8mmd/August2009 3
Effective Targeting Requires
Market
Market Segmentation
Segmentation
1.
1.Identify
Identifybases
basesfor
for
segmenting
segmentingthethe
market
market
2.
2.Develop
Developsegment
segment
profiles
profiles Market
Market Targeting
Targeting
3.
3.Develop
Developmeasure
measureof of
segment
segmentattractiveness
attractiveness
4.
4.Select
Selecttarget
targetsegments
segments
Market
Market positioning
positioning
5.
5.Develop
Developpositioning
positioning
for
for
target
targetsegments
segments
6.
6.Develop
Developaa 5
marketing
Four levels of
Micromarketing
Segments Niches
6
Segment Marketing
7
Basic Market Preference Patterns
Customerization
9
Segmenting Consumer
Markets
Geographic
Geographic
Demographic
Demographic
Psychographic
Psychographic
Behavioural
Behavioural
10
Demographic Segmentation
Age
Age and
and Life
Life Cycle
Cycle
Life
Life Stage
Stage
Gender
Gender
Income
Income
Generation
Generation
Social
Social Class
Class
11
The VALS Segmentation System
www.sric-bi.com
12
Behavioural Segmentation
Decision Roles Behavioural
Initiator Variables
Occasions
Influencer
Benefits
Decider
User Status
Buyer
Usage Rate
User Buyer-Readiness
Loyalty Status
Attitude
13
The Brand Funnel:
Variations in the Buyer-Readiness Stage
Aware
Ever tried
Recent trial
Occasional user
Regular user
Most often used
14
Loyalty Status
Hard-core
Split loyals
Shifting loyals
Switchers
15
Behavioural Segmentation
16
The Conversion Model
Users Nonusers
Strongly Weakly
Ambivalent Available
unavailable unavailable
17
Segmenting for Business Markets
Demographic
Demographic
Operating
Operating Variable
Variable
Purchasing
Purchasing Approaches
Approaches
Situational
Situational Factors
Factors
Personal
Personal
Characteristics
Characteristics
18
Segmenting for Business Markets
Demographic segmentation
Industry, company size, location
Operating variables
Technology, usage status, customer
capabilities
Purchasing approaches
Situational factors
Urgency, specific application, size of
order
Personal characteristics
Buyer-seller similarity, attitudes toward
risk, loyalty
19
Effective Segmentation
Criteria
Measurable
Measurable
Substantial
Substantial
Accessible
Accessible
Differentiable
Differentiable
Actionable
Actionable
20
Effective Segmentation
Criteria
Measurable
Measurable Size, purchasing power,
profiles
of segments can be
Accessible
Accessible measured.
Segments can be effectively
reached and served.
Substantial
Substantial Segments are large or
profitable enough to serve.
Segments must respond
Differential
Differential differently to different
marketing mix elements &
programs.
Effective programs can be
Actionable
Actionable designed to attract and serve
the segments.
21
Market Targeting
Evaluating Market Segments
24
Figure 8.4 Patterns of
Target Market Selection
25
Figure 8.4 Patterns of
Target Market Selection
26
Figure 8.5 Segment-by-Segment
Invasion Plan
27
The DHL Segmentation
Programme
Course at INSEAD on Advanced
Industrial Market Segmentation (2
weeks)
Adopted Cranfield Model (Prof.
Malcolm MacDonald)
Joint Marketing Team formed
between 2 Countries (ES & UK)
Quant research in the ES & UK
28
DHL Segmentation
Programme
In conjunction with Bain management
consultants we future proofed the
segments
Qualitative research to re-assess relevant
measures
8 Country Quant Validation exercise
Segmentation Toolkit rolled out Worldwide
New Business Unit created for the
Advantage Segment
29