Market Segmentation CHP 6 Flashcards
What is Market Segmentation
Grouping consumers into **segments **based on their needs, traits & characterics that might require marketing strategies.
Key Consumer Variables
Behavioural Segmentation
Geographical Segmentation
Psychographical Segmentation
Demographical Segmentation
Geographical Segmentation
A marketing strategy that involves dividing the market into regions such as locations, cities, cultural preference or population
Behavioural Segmentation
A marketing strategy that involves segmenting buyer based on their buying behaviour and behaviour with the product and usage patterns
Psychographical Segmentation
A marketing strategy that involves dividing the markets into segments based on the consumers interest, personality values, behaviour & lifestyle.
Demographic Segmentation
A marketing strategy that involves dividing the markets into segments based on consumers Age, Gender, Household Income & Lifestyle
Segmenting International Markets
Segmenting consumers who have similar needs and buying behaviour even though they are located in different countries
Key Consumer Variables - International Markets
Geographic Location
Economic Factors
Political Factors
Cultural Factors
Geographical Locations
Grouping consumers by regions
Economic Factor
Grouping consumers based on their level of economic development
Political & Legal Factors
The factors that influence the type & stability of government, Monetary policy & openess to foreign companies
Cultural Factors
Common languages, values, religion, customs and buying behavioural patterns
Designing a customer - driven marketing strategy
Select customers to serve
Decide on value proposition
Designing a customer - driven marketing
**Select customer to serve **
- Segmentation
Divide the total market into segments
-Targeting
Select segment to enter
Desiging a customer driven marketing strategy
Decide on a value proposition
- Differation
Companies make product that are unique by offering something special about the product
Designing a customer - driven marketing
Positioning
- Position the market offering in the minds of the market target
Requirements for effective segmentation
Market Segments must be:
Measurable
Assessible
Substantial
Differiable
Actionable
Requirements for effective segmentation
“Measureable”
It involves using special metrics and critieria to understand the size, purchasing power and profile of each segment.
Requirements for effective segmentation
“Accesible”
-The market can be reached and served
Requirements for effective segmentation
“Substantial”
-The market can be profitable or large to serve
Requirements for effective segmentation
“Differentiable”
- Different markets can be identified and they react in various way to different marketing strategies.
Requirements for effective segmentation
“Actionable”
-Companies can plan an effective program to attract and serve identified segments
Market Targeting
It Involves evaluating the segments
Market Targeting
Consider the segment size and growth, structural attaractiveness, company objectives and resources
Choosing a target audience: Think about how big the group is, how fast it’s growing, how appealing it is in structure, and how well it fits with the goals and resources of the company.
Market Targeting
Selecting target market segmenting
Choosing who you want to sell to.
Market Targeting
Alternatives range from undifferentiated marketing to
micromarketing
