Market Segmentation and Target Marketing in Todays Economy Market segmentation is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics. Target marketing requires evaluating the relative attractiveness of various segments.
Brand positioning entails designing product offerings and marketing programs that can establish an enduring competitive advantage in the target market by creating a unique brand image, or position. These three decision processes are closely linked and have strong interdependence.
Most markets are heterogeneous Markets are complex entities that can be defined in a variety of ways. Critical issue: Finding an appropriate segmentation scheme that will facilitate target marketing, positioning, and the formulation of successful marketing strategies and programs.
Target Marketing Target marketing requires marketers to take three major steps: Identify and profile distinct groups of buyers who differ in their needs and preferences ( market segmentation ) Select one or more market segments to enter ( market targeting ) For each target segment, establish and communicate the key distinctive benefit(s) of the companys market offering. ( market positioning )
Levels and Patterns of Market Segmentation
Mass Marketing VS Micro Marketing Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. Micro Marketing refers to the designing, creating, and manufacturing products, marketing strategies, and advertising campaigns for the benefit of very specific geographic, demographic, or psychographic segments of the consumer market. It is a relatively new marketing trend created by the diversity of the consumer population and the difficulty in creating a single product that appeals to all the diverse groups in the population.
SEGMENT MARKETING Market Segment A marketing technique that targets a group of customers with specific characteristics. Refers to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action.
Sector This is a subdivision of a market with distinctive characteristics. Market sectors are usually determined by market segmentation, which divides a market into different categories. Flexible Market Offering Naked Solution - products and services that all members of the segment values. Discretionary Options - products and services that some members of the segment values. Ex. Ice Cream
NICHE MARKETING Concentrating all marketing efforts on a small but specific and well defined segment of the population. Niches do not 'exist' but are 'created' by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them. As a strategy, niche marketing is aimed at being a big fish in a small pond instead of being a small fish in a big pond.
LOCAL MARKETING Local marketing is the customization of marketing mix variables to the store level based on consumer, competitor, and store characteristics.
INDIVIDUAL CUSTOMER MARKETING Mass Customization Mass production of goods with differing individual specifications through the use of components that may be assembled in a number of different configurations. Mass customization is a cost-efficient way of offering some of the benefits of customization.
Customerization the customization of products or services through personal interaction between a company and the customer. A company is said to customerize when it is able to dialogue with individual customers and respond by customizing its products, services, and messages on a one-to-one basis.
Geographic Segmentation World Region or Country Country Region Province / City / Municipality City or Metro Size Neighborhood Density Climate
Demographic Segmentation Age Gender Family size Family life cycle Income Ethnicity Occupation Education Religion Generation Nationality
For women: LOreal Paris brings its grooming technology and expertise to womenbecause youre worth it. For men: Now, LOreal Paris brings its grooming technology and expertise to men.because youre worth it.
Psychographic Segmentation Personality Values Lifestyle Social / Economic Class Interests
Behavioral Segmentation Occasions Benefits User Status User Rates Loyalty Status Readiness Stage Attitude Toward the Product