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Chapter Seven
Customer-Driven Marketing
Strategy:
Creating Value for Target Customers
2. Market Segmentation
Market segmentation
Dividing a market into smaller
segments
with
distinct
needs,
characteristics, or behavior that might
require separate marketing strategies
or mixes.
2. Market Segmentation
2. Market Segmentation
A) Segmenting Consumer Markets
Geographic
segmentation
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
2. Market Segmentation
A) Segmenting Consumer Markets
Geographic segmentation
divides the market into
different
geographical
units such as nations,
regions, states, counties,
or cities
Copyright 2014 by Pearson Education
2. Market Segmentation
A) Segmenting Consumer Markets
Demographic Segmentation
The most popular bases for segmenting
customer groups as needs, wants and usage
often vary by demographics
Easier to measure than most other types of
variables
2. Market Segmentation
A) Segmenting Consumer Markets
Demographic Segmentation
Age
Gender
Family Size
Family Life
Cycle
Income
Occupation
Education
Religion
Race
Generation
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Nationality
2. Market Segmentation
A) Segmenting Consumer Markets
Behavioral segmentation
divides buyers into groups
based on their knowledge,
attitudes,
uses,
or
responses to a product
Occasions
Benefits sought
User status
Usage rate
Loyalty status
2. Market Segmentation
B) Segmenting Business Markets
Consumer and business markets use many of
the same variables for segmentation.
2. Market Segmentation
C) Segmenting International markets
Geographic
location
Economic
factors
Politicallegal factors
Cultural
factors
2. Market Segmentation
C) Segmenting International Markets
2. Market Segmentation
D) Requirements for Effective Segmentation
Accessible
Substantial
Differentiable
Actionable
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3. Market Targeting
Selecting Target Market Segments
3. Market Targeting
Evaluating Market Segments
3. Market Targeting
Target Marketing Strategies
3. Market Targeting
Target Marketing Strategies
Market Targeting
Target Marketing Strategies
3. Market Targeting
Target Market Strategies
Concentrated marketing
(niche marketing) targets
a small share of a large
market
Limited company
resources
Knowledge of the market
More effective and
efficient
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3. Marketing Targeting
Target Market Strategies
3. Market Targeting
Target Market Strategies
3. Market Targeting
Target Market Strategies
Perceptions
Impressions
Feelings
Product
Services
People
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Channels
Image
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
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