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Identifying Market Segments and Targets

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.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 | Identifying Market Segments and Targets Marketing Management, 13th ed 8 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? Effective Targeting Requires Identify and profile distinct groups of buyers who differ in their needs and preferences Select one or more market segments to enter Establish and communicate the distinctive benefits of the market offering Four levels of Micromarketing Segments Niches Local areas Individuals What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs and wants. Flexible Marketing Offerings Naked solution: Product and service elements that all segment members value Discretionary options: Some segment members value options but not all Preference Segments Homogeneous preferences exist when consumers want the same things Diffused preferences exist when consumers want very different things Clustered preferences reveal natural segments from groups with shared preferences The Long Tail Chris Anderson explains the long tail equation: The lower the cost of distribution, the more you can economically offer without having to predict demand; The more you can offer, the greater the chance that you will be able to tap latent demand for minority tastes; and Aggregate enough minority taste, and you may find a new market. What is Customerization? Customerization combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice. Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral Claritas’ Prizm Education and affluence Family life cycle Urbanization Race and ethnicity Mobility Demographic Segmentation Age and life cycle Life stage Gender Income Generation Social class Behavioral Segmentation | Identifying Market Segments and Targets Marketing Management, 13th ed 8 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? Effective Targeting Requires Identify and profile distinct groups of buyers who differ in their needs and preferences Select one or more market segments to enter Establish and communicate the distinctive benefits of the market offering Four levels of Micromarketing Segments Niches Local areas Individuals What is a Market Segment? A market segment consists of a group of customers who share a similar set of needs and wants. Flexible Marketing Offerings Naked solution: Product and service elements that all segment members value Discretionary options: Some segment members value options but not all Preference Segments Homogeneous preferences exist when consumers want the same .

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