CHAPTE

R
Market
THREE

Segmentation
and Strategic
Targeting

Learning Objectives
1. To Understand Why Market
Segmentation Is Essential.
2. To Understand the Criteria for Targeting
Selected Segments Effectively.
3. To Understand the Bases for
Segmenting Consumers.
4. To Understand How Segmentation and
Strategic Targeting Are Carried Out.
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Chapter Three

What Kind of
Consumer Does This Ad
Target?

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Chapter Three

This Ad Targets Runners Who Are

Physically Active People and Also
Relish the Outdoors.

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Chapter Three

Why Segmentation is
Necessary
Consumer needs
differs
Differentiation
helps products
compete
Segmentation
helps identify
media
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Chapter Three

Positioning
The value
proposition,
expressed
through
promotion,
stating the
products or
services capacity
to deliver specific
benefits.

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Chapter Three

Criteria for Effective

Targeting

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Chapter Three

Which Distinct Benefit Does

Each of the Two Brands Shown
in This Figure Deliver?

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Chapter Three

The Dentyne Ads Benefit is Fresh

Breath and the Nicorette Ad is
Whitening and Smoking Cessation

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Chapter Three

Bases for Segmentation

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Discussion Questions
Considering the largest bank in your
colleges city or town:
How might consumers needs differ?
What types of products might meet their
needs?
What advertising media makes sense for
the different segments of consumers?

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11

Consumer-Rooted
Segmentation Bases

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Chapter Three

12

Demographic Segmentation

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13

Discussion Questions
What types of marketers might
segment according to social class?
What ethical issues might marketers
have when marketing to different
social classes?

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14

Geodemographic
Segmentation
Based on geography and
demographics
People who live close to one another
are similar
Birds of a feather flock together

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Chapter Three

15

One PRIZM Segment - Table

3.4 (excerpt)

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16

Personality Traits
People often do not identify these
traits because they are guarded or
not consciously recognized
Consumer innovators
Open minded
Perceive less risk in trying new things

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17

Lifestyles
Psychographics
Includes activities,
interests, and
opinions
They explain
buyers purchase
decisions and
choices
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18

Discussion Questions
How might you differ from a person
with similar demographics to
yourself?
How would this be important for
marketers?

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Chapter Three

19

Two Views of Post-Retirement

Lifestyle
Table 3.6 (excerpt)

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VALS Figure 3.4

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21

Socio-Cultural Values and

Beliefs
Sociological = group
Anthropological = cultural
Include segments based on
Cultural values
Sub-cultural membership
Cross-cultural affiliations

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Consumption-Specific
Segmentation Bases

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23

Consumption-Specific
Segmentation
Usage-Behavior
Usage rate
Awareness status
Level of involvement

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Consumption-Specific
Segmentation
Usage-Behavior
Usage-situation segmentation
Segmenting on the basis of special
occasions or situations
Example : When Im away on business, I
try to stay at a suites hotel.

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Which ConsumptionRelated Segmentation Is

Featured in This Ad?

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This is an Example of a
Situational Special Usage
Segmentation.

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Chapter Three Slide

27

Benefits Segmentation
Benefits sought represent consumer
needs
Important for positioning
Benefits of media

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Chapter Three Slide

Benefits Visiting Tourists

Seek in National Park
Table 3.13 (excerpt)
Segment

Description

Environmentalists Interested in an unpolluted, un-spoilt natural

environment
and in conservation. Not interested in socializing,
entertainment, or sports. Desire authenticity
and less man-made structures and vehicles
in the park.
Want-it-all
Tourists

Value socializing and entertainment more than

conservation. Interested in more activities and
opportunities for meeting other tourists. Do not
mind the urbanization of some park sections.

Independent
Tourists

Looking for calm and unpolluted environment,

exploring the park by themselves, and staying at
a comfortable place to relax. Influenced by word
of mouth in choosing travel destinations.

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Brand Loyalty and

Relationships
Brand loyalty includes:
Behavior
Attitude

Frequency award programs are popular

Customer relationships can be active or passive
Retail customers seek:
Personal connections vs. functional features

Banking customers seek:

Special treatment
Confidence benefits
Social benefits
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Implementing Segmentation
Strategies
Micro- and behavioral targeting
Personalized advertising messages
Narrowcasting
Email
Mobile

Use of many data sources

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Sample Acxiom Clusters - Table

3.16 (excerpt)

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Implementing Segmentation
Strategies
Concentrated Marketing
One segment

Differentiated
Several segments with individual
marketing mixes

Countersegmentation

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reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.

Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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