11 Segmentation&targeting
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Segmentation: The STP Process: •Market segmentation: Creating clusters in the market of buyers with similar needs and preferences.
•Market targeting: Selecting one or more market segments to enter.
•Market positioning: Establishing and communicating the key distinctive benefit(s) of the company’s market offering to each target.
Preferences:
Three patterns of preference segments are typically identified:
Homogeneous preferences Diffused preferences Clustered preferences
Segmentation and its levels:
Segment marketing Niche marketing Local marketing Individual marketingMass customization
Segmenting Consumer Markets:
Geographical segmentation:
Demographic segmentation:
Age, Gender, Income, Family size, Occupation, Education etc.
Psychographic segmentation:
Region, Country, City, Density, Climate, etc.
Lifestyle, Personality, Values etc.
Behavioral segmentation
Behavioral Segmentation Variables
Occasions Benefits User Status Usage Rates Loyalty Status – Hardcore Loyals, Split loyals, Shifting Loyals, Switchers.
Readiness Stage Attitude Toward the Productenthusiastic, positive, indifferent, negative & hostile.
Segmenting Business Markets Demographic segmentation Industry, company size, location variables Operating
Technology, user status, customer capabilities
Purchasing approaches Structure, Negotiation, Relationship, Policies.
Segmenting Business Markets Situational factors Urgency, specific application, size of order
Personal characteristics Buyer-seller similarity, attitudes toward risk, loyalty
Requirements for Effective Segmentation Measurable
Size, purchasing power, and profile of segment
Accessible Can be reached and served
Requirements for Effective Segmentation Substantial Large and profitable enough to serve Differentiable
Respond differently Actionable
Effective programs can be developed
Single-Segment Concentration:
Product Category
Market Segment
Selective Specialization:
Product Category
Market Segment
Product Specialization:
Product Category
Market Segment
Market Specialization:
Product Category
Market Segment
Full Market Coverage:
Product Category
Market Segment
•Market targeting: Selecting one or more market segments to enter.
•Market positioning: Establishing and communicating the key distinctive benefit(s) of the company’s market offering to each target.
Preferences:
Three patterns of preference segments are typically identified:
Homogeneous preferences Diffused preferences Clustered preferences
Segmentation and its levels:
Segment marketing Niche marketing Local marketing Individual marketingMass customization
Segmenting Consumer Markets:
Geographical segmentation:
Demographic segmentation:
Age, Gender, Income, Family size, Occupation, Education etc.
Psychographic segmentation:
Region, Country, City, Density, Climate, etc.
Lifestyle, Personality, Values etc.
Behavioral segmentation
Behavioral Segmentation Variables
Occasions Benefits User Status Usage Rates Loyalty Status – Hardcore Loyals, Split loyals, Shifting Loyals, Switchers.
Readiness Stage Attitude Toward the Productenthusiastic, positive, indifferent, negative & hostile.
Segmenting Business Markets Demographic segmentation Industry, company size, location variables Operating
Technology, user status, customer capabilities
Purchasing approaches Structure, Negotiation, Relationship, Policies.
Segmenting Business Markets Situational factors Urgency, specific application, size of order
Personal characteristics Buyer-seller similarity, attitudes toward risk, loyalty
Requirements for Effective Segmentation Measurable
Size, purchasing power, and profile of segment
Accessible Can be reached and served
Requirements for Effective Segmentation Substantial Large and profitable enough to serve Differentiable
Respond differently Actionable
Effective programs can be developed
Single-Segment Concentration:
Product Category
Market Segment
Selective Specialization:
Product Category
Market Segment
Product Specialization:
Product Category
Market Segment
Market Specialization:
Product Category
Market Segment
Full Market Coverage:
Product Category
Market Segment
