Module-2-MARKMAN SEGMENTATION AND TARGETING.pptx.pdf

MARKETING MANAGEMENT

1. Segmentation
and Targeting
Module 2

MARKMAN

2. 1. Bases for Segmentation
3. Effective Segmentation Criteria
2. Target Marketing
4. PTMs and STMs
Module 2: Segmentation and Targeting
02
Topics Covered

3. To compete more
effectively, many
companies are now
embracing target
marketing.
An Overview
Instead of scattering their marketing efforts,
they’re focusing on those consumers they
have the greatest chance of satisfying.
Effective target marketing requires that
marketers:
04
1. Identify and profile distinct groups of buyers who
differ in their needs and wants (market
segmentation).
2. Select one or more market segments to enter
(market targeting).
3. For each target segment, establish and
communicate the distinctive benefit(s) of the
company’s market offering (market positioning).
Module 2: Segmentation and Targeting

4. Bases for Segmenting Consumer Markets
Two bases for segmenting consumer markets are consumer
characteristics and consumer responses.
A market segment consists of a group of customers who
share a similar set of needs and wants.
The marketer’s task is to identify the appropriate number
and nature of market segments and decide which one(s)
to target.
Module 2: Segmentation and Targeting

5. Bases for Segmenting Consumer Markets
Geographic segmentation divides the market into
geographical units such as nations, states, regions,
counties, cities, or neighborhoods.
grassroots marketing also known as street marketing
or guerilla marketing, is a strategy that focuses on
engaging with consumers on a local and personal
level. It involves creative and unconventional tactics
to promote a product, service, or brand directly to
individuals or small groups within specific
communities.

6. Bases for Segmenting Consumer Markets
In demographic segmentation, we divide the market on
variables such as age, family size, family life cycle, gender,
income, occupation, education, religion, race, generation,
nationality, and social class.
AGE AND LIFE-CYCLE STAGE
Consumer wants and abilities change with age.

LIFE STAGE People in the same part of the life cycle may
still differ in their life stage.

7. Bases for Segmenting Consumer Markets
AGE AND LIFE-CYCLE STAGE
Consumer wants and abilities change with age.

8. Bases for Segmenting Consumer Markets
AGE AND LIFE-CYCLE STAGE
Consumer wants and abilities change with age.

9. Bases for Segmenting Consumer Markets
GENDER Men and women have different attitudes and behave
differently
INCOME
Consumers are divided based on their income.
GENERATION Each generation or cohort is profoundly influenced
by the times in which it grows up—the music, movies, politics, and
defining events of that period.
RACE AND CULTURE Multicultural marketing is an approach
recognizing that different ethnic and cultural segments have
sufficiently different needs and wants to require targeted
marketing activities, and that a mass market approach is not
refined enough for the diversity of the marketplace.

10. Bases for Segmenting Consumer Markets
Psychographic Segmentation
Psychographics is the science of using psychology and
demographics to better understand consumers.
In psychographic segmentation, buyers are divided into
different groups on the basis of psychological/personality
traits, lifestyle, or values. People within the same
demographic group can exhibit very different
psychographic profiles
Behavioral Segmentation
In behavioral segmentation, marketers divide buyers into
groups on the basis of their knowledge of, attitude toward,
use of, or response to a product.

11. Bases for Segmenting Consumer Markets
USER AND USAGE—REAL USER AND USAGE-RELATED VARIABLES
OCCASIONS We can distinguish buyers according to the occasions when
they develop a need, purchase a product, or use a product.
Loyalty status divides buyers into groups according to their
degree of loyalty.
User status divides buyers into ex-users, potential users,
first-time users, and regular users of a product.

Usage rate divides buyers into light, medium, and heavy
product users.

12. Effective Segmentation Criteria
Measurable. The size, purchasing power, and characteristics of
the segments can be measured.
Accessible. The segments can be effectively reached and
served.
Substantial. The segments are large and profitable enough to
serve. A segment should be the largest possible homogeneous
group worth going after with a tailored marketing program.
Differentiable. The segments are conceptually distinguishable
and respond differently to different marketing-mix elements and
programs.
Actionable. Effective programs can be formulated for attracting
and serving the segments.

13. Evaluating and Selecting the Market Segments
FULL MARKET COVERAGE With full market coverage, a firm attempts to
serve all customer groups with all the products they might need.
Undifferentiated Marketing. It aims to reach as many people as
possible in the hopes that they will support your brand.
Differentiated Marketing. Companies can target different
customer segments and groups by making personalized
messages for each of them.

14. PTMs and STMs
The primary target market is the target market
selected as the main focus of marketing activities and
most of the firm's resources are allocated to the
primary target.

The secondary target market is likely to be a segment
that is not as large as the primary market, but may
have growth potential.

15. Any questions?
Thank you for listening

16. SEAT WORK :
1.Why is segmentation and targeting are essential
in marketing strategy?

2.What are some key segmentation variables
used in marketing

3.Provide examples of effective segmentation
and targeting strategies used by businesses.