1. 8
Identifying
Market Segments
and Targets
Marketing Management
A South Asian Perspective, 13th ed

2. Chapter Questions
• What are the different levels of market
segmentation?
• How can a company divide a market
into segments?
• How should a company choose the
most attractive target markets?
• What are the requirements for effective
segmentation?
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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 benefits of the market
offering
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4. Ford’s Model T Followed a Mass
Market Approach
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5. Four levels of Micromarketing
Segments Niches
Local areas Individuals
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6. What is a Market Segment?
A market segment consists of a
group of customers who share a
similar set of needs ad wants.
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7. Gather.com: A Niche
Social Networking Site
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8. Preference Segments
• Homogeneous preferences exist
when consumers want the same things
• Diffused preferences exist when
consumers want very different things
• Clustered preferences reveal natural
segments from groups with shared
preferences
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9. The Himalaya Drug
Company serves a
growing niche
market by focusing
on ayurvedic
medicines and
health supplements
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10. What is Customerization?
Customerization combines operationally
driven mass customization with customized
marketing in a way that empowers
consumers to design the product and service
offering of their choice.
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11. United Bank
Ltd. of
Pakistan offers
customized
Galleria credit
cards to its
customers
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12. Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
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13. Demographic Segmentation
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
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14. Bank Al Habib
targets
senior citizens
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15. Dove Targets Women
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16. Behavioral Segmentation
Decision Roles Behavioral Variables
• Initiator • Occasions
• Influencer • Benefits
• Decider • User Status
• Buyer • Usage Rate
• User • Buyer-Readiness
• Loyalty Status
• Attitude
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17. The Brand Funnel Illustrates
Variations in the
Buyer-Readiness Stage
• Aware
• Ever tried
• Recent trial
• Occasional user
• Regular user
• Most often used
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18. Loyalty Status
Hard-core
Split loyals
Shifting loyals
Switchers
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19. Figure 8.3 Behavioral
Segmentation Breakdown
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20. Segmenting for Business Markets
Demographic
Operating Variable
Purchasing Approaches
Situational Factors
Personal
Characteristics
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21. Steps in Segmentation Process
Needs-based segmentation
Segment identification Marketing-Mix
Segment attractiveness Strategy
Segment profitability
Segment positioning
Segment acid test
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22. Effective Segmentation Criteria
Measurable
Substantial
Accessible
Differentiable
Actionable
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23. Figure 8.4 Patterns of
Target Market Selection
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24. Figure 8.4 Patterns of
Target Market Selection
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25. Figure 8.4 Patterns of
Target Market Selection
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26. The Revolution
brand of ready-
made women’s
apparel
successfully
focuses on the
niche segment of
plus-size clothes.
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27. Figure 8.5 Segment-by-Segment
Invasion Plan
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28. Pepsi used Megamarketing in India
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