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(1)

8

Identifying

Market Segments

and Targets

(2)
(3)

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

(4)

What is a Market Segment?

A

market segment

consists of a group

of customers who share a similar set of

(5)

Segmenting Consumer Markets

Geographic

Geographic

Demographic

Demographic

Psychographic

Psychographic

(6)

Demographic Segmentation

Age and Life Cycle

Age and Life Cycle

Life Stage

Life Stage

Gender

Gender

Income

Income

Generation

Generation

Social Class

Social Class

(7)
(8)

Behavioral Segmentation:

Behavioral Variables

Occasions

Benefits

User Status

Usage Rate

Buyer-Readiness

Loyalty Status

(9)

Heavy and Light Users of Common

Consumer Products

HEAVY HALF

HEAVY HALF

LIGHT HALF

LIGHT HALF

PRODUCT (% USERS)

PRODUCT (% USERS)

75%

71%

Soups and

Soups and

detergents (94%)

detergents (94%)

25%

29%

79%

21%

Toilet tissue (95%)

Toilet tissue (95%)

Shampoo (94%)

Shampoo (94%)

75%

25%

17%

17%

Paper towels (90%)

Paper towels (90%)

Cake mix (74%)

Cake mix (74%)

(10)

The Brand Funnel Illustrates

Variations in the

Buyer-Readiness Stage

Aware

Ever tried

Recent trial

Occasional user

Regular user

(11)

Loyalty Status

Hard-core

Split loyals

Shifting loyals

(12)

Figure 8.3 Behavioral

(13)

Effective Segmentation Criteria

Measurable

Measurable

Substantial

Substantial

Accessible

Accessible

Differentiable

Differentiable

(14)
(15)

Figure

Figure 8.3 Behavioral

References

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