Market Segmentation & Targeting

8/8/2019 Market Segmentation & Targeting

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MARKETSEGMENTATION&

TARGETINGLecturer

Ms. Sonam Khanna


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CU STOMER VALU E PROPOSITION

It refers to the way an organization will distinguish

itself from its competitors.

It entails how a company will draw, hold on to &

strengthen its relationship with target customers.

It aids a company to improve interaction with its

customers.


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4-3

A Market Consists ofProspective buyers willing and able topurchase the existing or potentialoffering of an organization.

Focus onBuyers Effective

Demand Offeringrather thanproduct orservice Market

Share


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MarketSegmentation

the process of aggregating prospective buyers into groups,or segments, that:

(1)have common needs, and;(2)will respond similarly to a marketing action.


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PU RPOSE

OFSEGMENTATION

C ustomers becoming more prosperous, with changingvalues, experiences leads to formation of new segments.


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4-6

B enefits of Market Segmentation

Identifies opportunities for newproduct development

Helps design marketing programsmost effective for reaching

homogenous groups of buyers

Improves allocation of marketingresources


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4-7

E ach Market Segment should be

MeasurableMeasurable

DifferentiableDifferentiable

AccessibleAccessible

SubstantialSubstantial


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STEPS IN SEGMENTING

AND TARGETING MARKETS

STEPS IN SEGMENTING

AND TARGETING MARKETSThe five key steps in segmenting and targeting markets link marketneeds of customers to the organization s marketing program.


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Criteria to Use in Forming the Segments

P otential for increased profit and ROISimilarity of needs of potential buyers

within a segment

Difference of needs of buyers amongsegments

Feasibility of a marketing action to reach a

segmentSimplicity and cost of assigning potential

buyers to segments


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TARGET MARKET STRATEGIES

UN DIFFERENT IATEDTARGETIN G

MU LT I-SEGMETNT TARGET IN G

CONC ERNT RATEDTARGETIN G


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B ASIS OF SEGMENTATION


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B EHAVIOU RIALSEGMENTATION

B ENEFITS SOU GHT

PU RCHASE OCC ASION

PU RCHASE B EHAVIOU RB RAND LOYALTY

U SAGEPERCEPTION & B ELIEFS


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PSYCHOGRAPHIC SEGMENTATION

PERSONALITY

LIFESTYLE

PROFILESEGMENTATION


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DEMOGRAPHIC SEGMENTATION


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SEGMENTING

ORGANIZATIONAL MARKETS


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MICROSEGMENTATION

CH OIC E CRITERIA

DEC ISION MAKIN G UN IT

STRUCTU RE

DEC ISION MAKIN G P ROC ESS B

UY CLASS

PU RCH ASIN GORGAN IZATION

ORGAN IZATION ALINN OVAT IVEN ESS


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EVALU ATING MARKET SEGMENTS

& TARGET MARKET SELEC

TIONComparing which segments are more

attractive

Capability of the company for

competition among various segments.


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FAC TORS FOR MARKET

ATTRACTIVENESSSEGMENT SIZESEGMENT GROWTH RATE

PRIC E SENSITIVITYB ARGAINING POWER OF CU STOMERSB ARGAINING POWER OF SU PPLIERSB ARRIERS TO MARKET SEGMENT ENTRY

B ARRIERS TO MARKET SEGMENT EXIT


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COMPETITIVE FAC TORS FOR

MARKET ATTRAC TIVENESSNATU RE OFCOMPETITION

NEW ENTRANTS

COMPETITIVE

DIFFERENTIATION


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FIRM SCAPAB ILITY TO

SERVE SEGMENTSExploitable marketing assets

Cost Advantage

Technological Edge

Managerial C apabilities & Commitment


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Documents

Market Segmentation & Targeting