8

Identifying
Market Segments
and Targets

Marketing Management, 13th ed

 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?

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 8-2

 levels of Market Segmentation
• Segment Marketing: A market segment
consist of a group of customers who share a similar
set of needs and wants.
• Niche Marketing: A niche is a more narrowly
defined customer group seeking a distinctive mix of
benefits. Marketers usually identify inches by dividing
a segment into sub segments.
• Local Marketing: Marketing programs tailored
to the needs and wants of local customer groups in
trading areas, neighborhoods, even individual stores
• Individual Marketing: Segments of one (i.e.,
customized marketing or one-to-one marketing)
 Bases for Segmenting Consumer Markets
• Geographic Segmentation: Geographic
segmentation calls for division of the market into
different geographical units such as nations, states,
regions, countries, cities, neighborhoods
• Demographic Segmentation: In demographic
segmentation, divide the market into groups on the
basis of variables such as age, life-cycle stage,
gender, income, generation, social class.
• Psychographic Segmentation: Buyers are
divided into different groups on the basis of
psychological/personality traits, lifestyle, or values.
• Behavioral Segmentation: Marketers divide
buyers into groups on the basis of their knowledge
of, attitude toward, use of, or response to a product
 Effective Segmentation Criteria

Measurable—purchasing
Measurable—purchasing power,
power, size
size

Substantial—large
Substantial—large enough
enough to
to be
be profitable
profitable

Accessible—can
Accessible—can be
be effectively
effectively reached
reached

Differentiable—distinguishable
Differentiable—distinguishable with
with Mkt
Mkt
Mix
Mix

Actionable—attracting
Actionable—attracting and
and serving
serving the
the
segment
segment

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 Patterns of Target Market Selection

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 Patterns of Target Market Selection

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 Patterns of Target Market Selection

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