Roy Rogers

Market segmentation Target market Marketing

02.10.2012

Target Marketing Process (STP)
Identify markets with unfulfilled needs

Segmentation, Targeting and Positioning
Albert CARUANA Ph.D.

Determining market segmentation

Selecting market to target

Positioning through marketing strategies

Customer-Oriented Marketing Strategy • Segment market:
– Divide larger market into groups of people with similar demands and responses.

Market
• Generic definition: A market is a group of people with purchasing power who are willing to spend money to satisfy their need • Product Market: consists of a group of people with similar needs who satisfy their needs through the purchase of particular products.

• Target marketing:
– Evaluate segments and select one or more segments to enter.

• Positioning:
– Create clear, distinctive and desirable place relative to competing products in minds of target customers.

Market Segmentation
• Segmentation: the subdividing of a market into homogenous subsets of customers, where any subset can be selected as a market target to be reached with a distinctive marketing mix – Consumer Segmentation – Industrial Segmentation

Consumer Segmentation Geographic
• • • • State Region Country size Climate

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02.10.2012

Consumer Segmentation Demographic
Most often used because: • correlate well with sales • easy to identify and measure • used to describe advertising media audiences

Consumer Segmentation Demographic
– Age - Young , middle age, senior – Gender – Type of Household - single, traditional – Family size – Family Life Cycle – Occupation, Education, Income – Nationality, Religion, Race

Geo-Demographic

Digital maps show racial divides in US cities
Detroit Chicago

One dot = 25 people • White people •Black people •Asians •Hispanics

Consumer Segmentation
• Psychographic
– Personality - macho image eg Marlboro – Lifestyle - people often use products to make statements about themselves

• Behavioural
– usage – Usage rate - in...
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