3. OBJECTIVES
Understand the different level of market
segmentation
Have an overview on how can a company divide a
market into segment
Have an understanding on how should a company
choose the most attractive target markets
Have an awareness on the requirements for an
effective segmentation
4. WHAT IS MARKETING?
CREATE COMMUNICATE DELIVER VALUE
SATISFY CUSTOMER’S NEEDS & WANTS BEAT THE COMPETITORS
GAIN PROFIT
5. WHAT IS MASS MARKETING?
One flavor of pizza originally
created for everyone Mass produced to sell to all buyers
Creates higher cost Results to lower profit
11. LEVELS OF MICROMARKETING
Tailored to the needs and wants of local
customer group
Muslim Community Halal Pizza
Local Marketing – Halal Pizza for
our Muslim brothers / sisters
12. BASES FOR SEGMENTING CUSTOMER MARKETS
Geographic
Location
Age & Life Cycle
Life Stage
Gender
Demographic Income
Generation
Social Class
Gender
Personality
Psychographic Trait
Life Style
Values
Life Style
Occasions
Benefits
Behavioral User Status
Usage Rate
Buyer-Readiness
Divorce Loyalty Status
Attitude
14. CHOOSING THE MOST ATTRACTIVE
MARKET
Segment evaluation should be
reviewed considering two factors Company’s
Objective and
Resources
Overall
Attractiveness of
the Segment
Weighing in both factors would help us
create wiser decision for the company.
15. TISSUE DRAWING
Defining the market opportunity
Gap in meeting customer
needs and wants can be
relayed as the market
opportunities
16. TISSUE DRAWING
Determine the total market size
Gap in meeting customer needs and wants
can be relayed as the market opportunities
Pizza signify the market
17. TISSUE DRAWING
Divide the market into segments
Gap in meeting customer needs and wants
can be relayed as the market opportunities
Each portion / division
signifies the segment
18. TISSUE DRAWING
Identify your Target Niche
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
The certain portion is
the Niche
19. TISSUE DRAWING
Localized Market
Find your Niche
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the Per Group
Divide into segment
market opportunities
20. TISSUE DRAWING
Individual Marketing
Find your Niche Local Marketing
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
Divide into segment
Customized
market opportunities
21. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
Divide into segment
market opportunities
Bases for Segmenting
Geographic Psychological
Demographic
Behavioral
22. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
Divide into segment
market opportunities
Basis Criteria in Segmentation
Substantial
Differentiable
Actionable
Accessible
Measurable
23. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
Divide into segment
Criteria
Basis
24. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
Divide into segment
Criteria
Basis
WEIGH IN THE FACTORS
TO ENSURE EFFECTIVE
SEGMENTATION
25. TISSUE DRAWING
Find your Niche Local Marketing Customized
Gap in meeting customer needs Pizza signify the market
and wants can be relayed as the
market opportunities
Divide into segment
Criteria
Basis
26. Presentation on Chapter 8:
Identifying Market Segments and
Targets
Submitted by: Elainrose Esberto
May 4, 2012
ATENEO GRADUATE SCHOOL OF BUSINESS
27. Presentation on Chapter 8:
Identifying Market Segments and
Targets
Submitted by: Elainrose Esberto
May 4, 2012
28. ATENEO GRADUATE SCHOOL OF BUSINESS
CHAPTER 8:
IDENTIFYING
MARKET SEGMENTS
AND TARGETS
Submitted by:
Volteire R. Caballero
MBA-Standard
May 03, 2011
52. Outline: Market Segments and
Targets
1. Levels of Market Segmentation
2. Four levels of Micromarketing
3. Segmentation
4. Segmenting for Business Markets
5. Segmentation Process
6. Five key criteria in Market segments
7. Evaluating and Selecting the Market
Segments
62. BEHAVIORAL SEGMENTATION DIVIDES THE
MARKET BASED ON
2. Behavioral Variables
•Occasions
•Benefits
•User Status
•Usage Rate
•Buyer-Readiness
•Loyalty Status
•Attitude
63. Concept 4
SEGMENTING FOR BUSINESS
MARKETS
1. Demographic 2. Operating Variable 3. Purchasing
Approaches
4. Situational Factors 5. Personal
Characteristics
64. Questions to decided which to
serve in Demographic
1. Industry: Which industries?
2. Company size: what size
companies?
3. Location: What geographical areas?
Demographic
65. Questions to decided which to
serve in Operating Variables
1. Technology: What customer
technologies?
2. User or nonuser status: Which users? Heavy
users?
3. Customer capabilities: Should we
serve many of few services?
Operating Variables
66. Questions to decided which to
serve in Purchasing Approaches
1. Purchasing-function organization:
centralized?
2. Power structure: engineering
3. dominated? Financially dominated?
4. Nature of existing relationship: strong?
5. General purchasing policies: lease?
Service contract?
Operating Variables
6. Purchasing criteria: quality? Service?
67. Questions to decided which to
serve in Situational Factors
1. Urgency: quick and sudden?
2. Specific application: focus on
certain application? Or all?
3. Size or order: large or small
orders?
Situational Factors
68. Questions to decided which to
serve in Personal Characteristics
1. Buyer-seller similarity: people and
values are similar?
2. Attitude toward risk: risk-taking or
risk-avoiding customers?
3. Loyalty: high loyalty to their
suppliers?
Personal Characteristics
85. TISSUE DRAWING
4 BUILDINGS
Local Areas Niches Individuals Segments
86. TISSUE DRAWING
With 4 floors each
4 BUILDINGS
1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
Local Areas Niches Individuals Segments
87. TISSUE DRAWING
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
6. Social Class
With 6 type of rooms per floor
88. TISSUE DRAWING
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Decision Roles
2 different buyers
89. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Decision Roles
2 different buyers
90. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Loyalty
Decision Roles Hardcore
Split Loyals
Shifting Loyals
Switchers
2 different buyers
91. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Loyalty
Decision Roles Hardcore
Split Loyals Demographic
Shifting Loyals Operating Variable
Switchers Purchasing Approaches
Situational Factors
Personal Characteristics
2 different buyers
Corporate Customer
92. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Punch list before
accepting buildings
Funnel rain catcher
With 4 floors each
4 BUILDINGS 1st: Geographic
2nd: Demographic
3rd: Psychographic
4th:Behavioral
Needs based segmentation
Segment identification
Segment Attractiveness
Segment Profitability
Segment Positioning
Segment Acid Test
1. Age and Life Cycle
2. Life Stage
3. Gender
Local Areas Niches Individuals Segments 4. Income
5. Generation
Behavioral Variables
6. Social Class
With 6 type of rooms per floor
Loyalty
Decision Roles Hardcore
Split Loyals Demographic
Shifting Loyals Operating Variable
Switchers Purchasing Approaches
Situational Factors
Personal Characteristics
2 different buyers
Corporate Customer
93. TISSUE DRAWING Aware
Ever Tried
Recent Trial
Occasional User
Regular User
Most Often Used
Punch list before
accepting buildings
With 4 floors each
Funnel rain catcher 1st: Geographic
2nd: Demographic
3rd: Psychographic
4 BUILDINGS
4th:Behavioral
1. Age and Life Cycle
Needs based segmentation 2. Life Stage
Segment identification
3. Gender
Segment Attractiveness
Segment Profitability 4. Income
Segment Positioning 5. Generation
Segment Acid Test 6. Social Class
Local Areas Niches Individuals Segments
With 6 type of rooms per floor
Behavioral Variables
Differentiable
Measurable
Loyalty Substantial
Accessible
Decision Roles Hardcore Actionable
Split Loyals Demographic
Shifting Loyals Operating Variable
Switchers Purchasing Approaches
Situational Factors Giving of keys upon
Personal Characteristics
purchase and turnover
2 different buyers
Corporate Customer
94. SUMMARY
Marketing has four levels
Market Segmenting includes geographic,
demographic, psychographic and behavioral
considerations
Consider the decision roles and behavioral
variables of the customer
Determine what sort of customer you have (Loyalty)
Effective Segmentation Criteria is differentiable,
measurable, actionable, substantial and accessible
95. Presentation on Chapter 8:
Identifying Market Segments and
Targets
Submitted by: Noel Paningbatan
May 4, 2012
ATENEO GRADUATE SCHOOL OF BUSINESS