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Dividing a market into smaller groups with distinct needs , characteristics , or behavior that might require separate marketing

strategies or mixes. Dividing the big hetrogenous market into small homogenous market.

The process of evaluating each market segments attractiveness and selecting one or more segments to enter.

Actually differentiating the market offering to create superior customer value.

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.



Creating value for targeted customers







Dividing a market into different geographic units such as nations , states , regions , countries , cities or neighborhood. Basis of Geographic Segmentation World region or country Country Region City or Metro Size Density Climate

Dividing the markets into groups based on variable such as age , gender, family size, family life cycle, income , occupation, education, religion , race, generation and nationality.

Consumer need and want change with age.

Gender segmentation has long been used in clothing, cosmetics, toiletries , and magazines.

The marketers of products and services such as automobile clothing, cosmetics , financial services , and travel have long used income segmentaion.

Divides buyers into different groups based on social class, life style, or personality characteristics

Dividing a marker into groups based on the consumer knowledge , attitude, uses or responses to a product.

Buyers can be grouped according to occasion when they get the idea to buy , actually make their purchase , or use the purchased item.

Benefit segmentation requires finding the major benefits people look for in the product class.

Markets can be segmented into nonusers, exusers, potential users, first time users, and resgular users of product.

Marketers can also be segmented into light, medium, and heavy product users.

A market can also be segmented by consumer loyalty

Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.

1. 2. 3. 4. 5.

Measurable Accessible Substantial Differentiable Actionable

Evaluating Market segments. Selecting Target Market segments

A set of buyers sharing common needs or characteristics that the company decides to serve.

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

A market coverage strategy in which a firm decided to target several market segments and design separate offers for each.

A market coverage strategy in which a firm goes after a large share of one or few segments or niches.

The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups include local marketing and individual marketing.

Tailoring brands and promotions to the needs and wants of local customer groups cities , neighborhoods, and even specific stores.

Tailoring products and marketing programs to the needs and performance of individual customers also labels one-to-one marketing Customized marketing and marketing-of-one marketing.

Undiffernti ated ( Mass ) Marketing

Differntiated ( Segmented ) Marketing

Concentrated ( Niche ) Marketing

Micro Marketing ( Local or Individual Marketing )

The way the product is defined by consumers on important attributed the place the product occupies in consumers mind relative to competing products. Product are made in the factory and Brands in the mind of customer.

Perceptual Positioning maps, shows consumer perception of their brands versus competing products on important buying dimensions.

An advantage over competitors gained by offering greater customer value , either through lower price or by providing more benefits that just satisfy higher prices.










Product, Price, Place, Promotion Integrated Marketing