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6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s) Market
3. Develop Measures Targeting
of Segment Attractiveness
2. Develop Profiles
of Resulting Segments
Market Segmentation
1. Identify Bases
for Segmenting the Market
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peographic
Nations, states,
regions or cities

Demographic
Age, gender,
family size and
life cycle, or income

Psychographics
Social class, lifestyle,
or personality

Behavioral
Occasions, benefits,
uses, or responses
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Demographics
Situational ‰Industry
Factors ‰Size
‰location
Bases
for Segmenting
Business
Purchasing Markets
Approaches Operating
Characteristics
‰Technology
‰User type
‰Customer capability
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± Difference in the characteristics


Distinctive

Accessible ± Can we reach the customers? Dist,


media
± can the size, purchasing power,
Measurable profitability be objectively determined

Sustainable ± is this a fad? Will the segment last to


cover cost

Serviceable ± Does the org have the resources to


cater for the needs?

Defendable ± can we defend successfully against


competitive threats

± is it compatible to org. mission,


Acceptable objective, culture
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Company
Marketing Market
Mix

A. Undifferentiated Marketing
Company
Marketing Mix 1 Segment 1
Company
Segment 2
Marketing Mix 2
Company
Segment 3
Marketing Mix 3
B. Differentiated Marketing

Segment 1
Company
Marketing Segment 2
Mix
Segment 3

C. Concentrated Marketing
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Company
Resources

Product
Variability

Product¶s Stage
in the Product Life Cycle

Market
Variability

Competitors¶
Marketing Strategies
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Product Product
Class Attributes

Benefits
 Offered


Away from
Competitors


°
Usage

Occasions

Users
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Product Service

Areas for Competitive


Differentiation

Personnel Image