Market Segmentation

What Is?

The process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix

The Base

• Geographic • Demographic• Psychological• Psychographic• Sociocultural• Use Related Segmentation• Use Situation Segmentation• Benefit Segmentation• Hybrid Segmentation

Step in Segmentation Process

1. Needs-Based Segmentation2. Segment Identification3. Segment Attractiveness4. Segment Profitability5. Segment Positioning6. Segment “Acid Test”7. Marketing-Mix Strategy

Effective Segmentation Criteria

•Measurable•Substantial•Accessible•Differentiable•Actionable

Exercise

• Select a product and brand that you use frequently and list the benefits you receive from using it. Without disclosing your list, ask a fellow student who uses a different brand in this product category to make a similar list for his or her brand. Compare the two lists and identify the implications for using benefit segmentation to market the two brands

• Does your lifestyle differ significantly from your parent’s lifestyle? If so, how are the two lifestyles different? What factors cause these differences?

Selecting and Evaluating Market Segments

1. Single-Segment Concentration2. Selective Specialization3. Product Specialization4. Market Specialization5. Full Market Coverage

Additional Consideration

• Segment-By-Segment Invasion Plans

• Updating Segmentation Schemes• Ethical Choice of Market Targets

Doing In Group

• Explain and Give an Example of Each Segmentation

• Visit:www.gap.com

http://www.hushpuppies.sg/Indonesia/IHome.htmlhttp://www.femina.co.id/main/default.asphttp://kompas.co.id/http://id.blackberry.com/http://www.pmbs.ac.id/

• According to your Group, what is the base of those companies’ segmentation?

• Do those companies targeting only one segment or more?

• How those companies positioning their product toward consumers’ mind?

Thank You