A brief overview of a chapter in my marketing class

1. Market Segmentation,
Targeting and Positioning
Kevin DesCombes
Marketing 2100 Student

2. Market Types
• Consumer Products- Products purchased by the
ultimate consumer for personal use.
• Business Products- Goods and services
purchased for use either directly or indirectly in
the production of other goods and services for
resale.

3. The Role of Market Segmentation
• Market Segmentation- Division of the total market into smaller,
relatively homogenous groups.
• Effective market segmentation depends on 4 basic
requirements:
• Measurable purchasing power and size
• Promote and serving the segment effectively
• Identifying segments large enough to offer profit potential
• Aim for segments which match your marketing capabilitites

4. Segmenting Consumer Markets
Understanding of a groups characteristics:
Age
Gender
Geographic Location
Income
Buying Patterns

5. Geographic Segmentation
Geographic Segmentation provides useful
distinctions when regional preferences or
needs exist
Core Geographic regions offer 40-80 percent
of most major brand sales

6. Demographic Segmentation
• Gender
• Age
• Income
• Occupation
• Education
• Household Size
• Sexual Orientation
• Stage in family Lifestyle
Demographic Segmentation is a
starting point for
communication with target
markets
When Demographic
Segmentation is used as an
endpoint it can lead to
stereotyping, alienating your
target market

7. Psychographic Segmentation
• Psychographic Segmentation- Division of a
population into groups having similar attitudes,
values and lifestyles.
Psychographic research is often used to determine
the attitude, wants and needs of various
demographic/geographic segments

8. Product-Related Segmentation
Consumers relationships to a product are broken
into several forms:
• Benefits people seek when purchasing products
• Usage rates of a product by consumers
• Brand loyalty towards a particular product

9. The Market Segmentation Process
Step 1- Develop a relevant profile for each segment
Step 2- Forecast Market Potential
Step 3- Forecast Probable Market Share
Step 4- Select specific market segments

10. Strategies for Reaching Target Markets
• Undifferentiated marketing- Single product marketed to all
consumers
• Differentiated marketing- Different products mixes designed to
satisfy smaller marketing groups
• Concentrated marketing- Targeting a single market group
• Micromarketing- Narrow marketing targeting specific groups

11. Selecting and Executing a Strategy
Positioning Map Reposition