Customer-Driven Marketing Strategy:
Creating Value for Target Customers
TOPICS PAGE NO.
Segmenting consumer markets 2-4
Segmenting business markets
Segmenting International markets 5
Requirements for effective segmentation
Market targeting 6
Target marketing strategies
Differentiation and positioning 9
Positioning maps 10 10.
Choosing a Differentiation and positioning 10-14 strategy
| Market Segmentation:
Market segmentation is a strategy that involves dividing a larger market into subsets of consumers who have common needs and applications for the goods and services offered in the market. Steps in market segmentation, targeting and positioning
A market can be segmented by three ways. These are as follows: * Segmenting consumer markets
* Segmenting business markets
Segmenting international markets
Segmenting Consumer Markets:
The segmentation of consumer markets requires the creation of sub-groups from a larger population to more specifically target them. There are virtually dozens of ways that a market might be segmented and the segments chosen will depend on the business and the products or services it offers. Basically, segmentation is all about identifying specific groups of people based on common characteristics.
The major categories of segmentation bases from which managers can select: Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities. Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups Gender segmentation divides the market based on sex (male or female) Income segmentation divides the market into affluent or low-income consumers Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits 3
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product * Occasions
* Benefits sought
* User status
* Usage rate
* Loyalty status
Segmenting Business Markets
* can use some of the same bases as used to
segment consumer markets
* often segment business markets on the type of
customer or on industry classification
* segmentation by size of customer really
considers sales volume or potential
* can also consider segmenting on the basis of the
type of buying situation the customer is in
Segmenting international markets
International market segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries.
Requirements for Effective Segmentation
To be useful, Market segments must be:
Measurable: - The degree to which the size and purchasing power of the segments can be measured. 5
Accessible: - A degree to which the segment can be effectively reached and served. Substantial: - The degree to which the segments are large and/or profitable enough. A segment should be the largest possible homogeneous group worth going after with tailored marketing programmed. Differentiable: - The segments are conceptually be...
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