8

Identifying
Market Segments
and Targets

Marketing Management, 13th ed

 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
distinctive benefits of the market
offering

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 Ford’s Model T Followed a Mass
Market Approach

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 Four levels of Micromarketing

Segments Niches

Local areas Individuals

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 Niche Marketers

Enterprise Rent-A-Car
targets the insurance-
replacement market

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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 ad wants.

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 What is Customerization?

Customerization combines operationally

driven mass customization with customized
marketing in a way that empowers
consumers to design the product and service
offering of their choice.

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 Segmenting Consumer Markets

Geographic

Demographic

Psychographic

Behavioral

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 Demographic Segmentation

Age and Life Cycle

Life Stage
Gender
Income
Generation
Social Class

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 Behavioral Segmentation

Decision Roles Behavioral Variables

• Initiator • Occasions
• Influencer • Benefits
• Decider • User Status
• Buyer • Usage Rate
• User • Buyer-Readiness
• Loyalty Status
• Attitude
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8-10
 Heavy and Light Users of Common
Consumer Products
PRODUCT (% USERS) HEAVY HALF LIGHT HALF
Soups and
detergents (94%) 75% 25%
Toilet tissue (95%) 71% 29%
Shampoo (94%) 79% 21%
Paper towels (90%) 75% 25%
Cake mix (74%) 83% 17%
Cola (67%) 83% 17%
Beer (41%) 87% 13%
Dog food (30%) 81% 19%
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Bourbon (20%) 95% 5 %
 The Brand Funnel Illustrates
Variations in the
Buyer-Readiness Stage
• Aware
• Ever tried
• Recent trial
• Occasional user
• Regular user
• Most often used

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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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 Effective Segmentation Criteria

Measurable

Substantial

Accessible

Differentiable

Actionable

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 Figure 8.4 Patterns of
Target Market Selection

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 Figure 8.4 Patterns of
Target Market Selection

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 Figure 8.4 Patterns of
Target Market Selection

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