Segmentation & Target Marketing

Soma Giri
Disclaimer: - Some of the images and content have been taken from different online sources and this presentation is intended only for knowledge sharing but not for any profitable reasons

 Summarise the relationship between market segmentation, targeting and positioning

Identify and describe the major variables for consumer segmentation

Outline how companies select target markets and implement segmentation strategies

Show how market segmentation and the marketing mix are interlinked in the positioning strategy

Segmentation Variables Geographic Demographic Psychographic Behavioral Other (anything!)

No single best way to segment a market. Often best to combine variables and identify smaller, better-defined target groups.

Demographic Use Differences in: age, gender, family size, family life cycle, income, occupation, education, race, and religion Most frequently used segmentation variable Ease of measurement and high availability Usually the worst variable to use.

Psychographic Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic classification often have very different lifestyles and personalities.

Behavioral Occasion Special promotions & labels for holidays. Special products for special occasions. Benefits Sought Different segments desire different benefits from the same products Loyalty Status

Loyalty Status Nonusers, ex-users, potential users, first-time users, regular users Usage Rate Light, medium, heavy.

Split loyals

Shifting loyals

Switchers

User & Loyalty Status

Target Market

Unaware

Aware

Not Tried

Tried

Negative Option

Neutral

Favorable option

Rejector

Not yet repeated

Repeated

Loyal to other brand

Switcher

Loyal to brand

Light User

Regular User

Heavy User

Effective Segmentation

Measurable Size, purchasing power, profiles of segments can be measured

Accessible Segments can be effectively reached and served

Substantial Segments are large or profitable enough to serve

Differentiable Segments must respond differently to different marketing mix elements & programs Actionable Effective programs can be designed to attract and serve the segments

Targeting Segments

Undifferentiated Marketing Mass Marketing

Differentiated Marketing Segmented

Concentrated Marketing Niche Marketing

Micromarketing Local or individual Marketing

Target Narrowly

Target Broadly

Targeting Market Selection

Product x Market Matrices

Classic