This Chapter covers and gives you the idea of terms related to Market Segmentation, Target marketing & Competitive Market Forces along with the examples to make the idea more clearer. The blank slides contains the commercials, Which might not be visible. Instead the links for commercials will be provided on requests.

2. Target Market
• A target market is a group of
customers that the business
has decided to aim its
marketing efforts and
ultimately its merchandise

3. Example
• Rolls-Royce

4. Commercial

5. • Market segmentation is the division of A
market into different groups of customers with
distinctly similar needs and product/service
requirements.
• Market segmentation is the division of a mass
market into identifiable and distinct groups or
segments, each of which have common
characteristics and needs and display similar
responses to marketing actions.

6. Market segmentation Activities
3
Selection Of Segmentation
2 Strategy
Evaluation Of The Market Segments
1
Formation And Profiling Segments

7. Needs or Desired and benefits
Purchase Behavior
Values/ Lifestyle Measure
Classifying Characteristics

8. 1. Needs/ Benefits Sought
• Needs and benefits are the characteristics
or attributes of product that consumer
seeks or consider important.
Example:
• Nokia Mobiles

9. Needs/ Benefits Sought
i. Multi-Item Scale: To know how important or
unimportant each benefit is to consumer.
ii. Conjoint Analysis: the qualities of product or
service that are most desired by the
customers.
a) Identification of Relevant Behavior
b) data Collection
c) Data Analysis

10. Conjoint Analysis
Identification of Relevant Behavior
1 To specify which attribute is important to study; e.g: Pizza Hut (Price, Delivery
Time, Type of Crust or Split Toppings)
Data Collection:
2 Collect the data by given level
Data Analysis:
3
Analyze the Data.

11. • When and where consumed
• The nature of situation
• What type
• The quantity consumed
• Brand color, and size

12. Rooh Afza in Ramazan
EXAMPLE: BEHAVIORAL
MEASURES

13. 3. Values/ Lifestyle Measure
Analyzing consumers’ activities,
interests, and opinions, we can
understand individual lifestyles and
patterns of behavior, which in turn
affect their buying behavior and
decision-making processes. On this
basis, we can also identify similar
product and/or media usage patterns.

14. 4. Classifying Characteristics
Demographic • Key variables concern
age, sex, occupation, level of
education, religion, social class, and income
characteristics, many of which determine a
potential buyer’s ability to purchase a product
or service.

15. • Geographic • In many situations the needs of
potential customers in one geographic
area are different from those in
another area. This may be due to
climate, custom, or tradition.

16. Commercial

17. Evaluate the Market Segments
The market segments are studied against the five criteria:
1 Uniqueness
2 Responsiveness
3 Actionability
4 Stability and
5 Profitability

18. Uniqueness
• Uniqueness refers to large between-
group differences in the segments.
• The best basis for forming market
segments is to creates segments that
are more unique.
• The objective is to achieve competitive
power.
• The more unique the segments are, the
easier It is to translate the
segmentation result into strategic and
tactical actions.

19. Responsiveness
• If specific strategies and tactical
actions are made for the specific
segment, it is expected that the
segment would be more responsive to
those actions than other segments.
• For example
Pleasure travelers may respond to price
change whereas business travelers may
not.

20. Actionability
• Actionability is the extent to which the
manager can take action on the results
of the segmentation analysis.
• Actionability expresses the notion that
the segment targeted must be of an
appropriate size for the company.
For Example
• A need-based segment is made to cater
a particular group of patients.

21. Stability
• The segment should be stable over
time with respect to desired end
benefits and classification factors.
• It is not necessary that same people
remain in the segment.
• People with the needs identified by the
segment should have same
classification characteristics.

22. Profitability
• The segment should have enough
potential to contribute towards the
organization’s objective and purpose of
existence.

23. Segment Strategy
• The last step in segmentation is to select a
segmentation strategy.
• It must be decided whether to take mass
marketing approach or segmented approach.
• Segmented approach is further divided as
single segment approach or multiple
segment approach.
• Single segment: Porsche
• Multiple segment: Chevrolet, Toyota

24. Examining Competitive
Market Forces.

25. Examining Competitive Market Forces.
(Emphasis on first three)
• What are the fundamental characteristics of my industry?
Creating a
market
profile
• Who are my competitors?
Perceptual
• What are the current positions of my competitor?
mapping
• What moves are my competitor most likely to make?
• What moves can we make to achieve a sustainable competitive advantage?

26. Examining Competitive Market Forces.
Creating a market Profile: Deals with industry
characteristics such as:
– Size and growth rate of the industry
– Substitute products
– Suppliers to the industry
– Principal customers
– Manufacturing and distribution
– Barriers to entry
– Social and economic conditions affecting the industry
Perceptual Mapping: Also known as product positioning
map. Who are my competitors & what are their current positions?

27. Perceptual Map (Fig 4-6)
• Large • High Quality
portion • Quiet
Dave’s
Hill Top West View
• Low Price • Pleasant
• Fast Service atmosphere
• Accessibility
Rusty • Wide
Scupper selection
Perceptual mapping most likely ask consumers to rate brands with more than two attributes

28. Perceptual Map (Q# 10)
• Night life • Weather Miami
• Sports
New York
• Shopping
• Dining Las Vegas
• Culture San • Safety San
• Museum Francisco Antonio
• Sightseeing
CITY TOURISTS
Las Vegas 8,756
Miami 2,620
New York 17,411
San Antonio 840
San Francisco 9,375

29. Perceptual Map (Q# 10)
Conclusion:
 Further create similar attributes as in the City
New York, San Francisco. Such as:
 Shopping facilities
 Sigh seeing
 Museums
 Sports & Nightclubs

30. THANK YOU!