Market Segmentation and Targeting英文版).ppt

1、Market Segmentation and Targeting,Market Segmentation,Markets can be huge and diverse entities made up of individuals. Since individual wants and needs tend to differ, trying to mass market to a whole market often is inefficient. Costing too much time and money, and hurting profit potential. Therefo

2、re, a company should focus or target specific groups or segments of individuals to enhance profit opportunities.,Market Segmentation,Some will argue that mass marketing is better, because lower overall production costs are achieved. Lower expenses then leads to higher profits. However, unless almost

3、 everyone is buying your product/service, the lower expenses will not necessary mean higher profits.,Market Segmentation,As a marketer, defining and identifying groups of individuals who will pay for your product or service is an important task. Think of this task as trying to take advantage of the

4、cost savings of mass marketing, but on a smaller scale. Or, conducting mass marketing to groups instead of the market as a whole.,Market Segmentation,Definition: A market segments are groups of high-potential prospective customers with common characteristics and needs that distinguish them from othe

5、r high-potential market segments.,Market Segmentation,Types of Segmentation: Segment (general): focuses on customers who share a similar set of wants. Niche: focuses on customers who seek a distinct set of benefits (often called sub-segmentation). Local: focuses on the wants of customers in a specif

6、ic location. Customerization: focuses on customizing the product or service to fit the customers specific wants (the ultimate in segmentation).,Market Segmentation,Bases for Segmenting Customer Markets: Geographic Demographic Psychographic Behavioral,Market Segmentation,Geographic Segmentation: This

7、 basis for segmentation calls for dividing the market into different geographic units (i.e. provinces, counties, cities, towns, neighborhoods, etc.).,Market Segmentation,Demographic Segmentation: This basis of segmentation calls for dividing the markets into groups based on age and/or other variable

8、s. Demographic segmentation is popular, because the variables are easier to measre.,Market Segmentation,Some of the variables considered in Demographic Segmentation: Age and life-cycle stage Life stage Gender Income Social class Generation Ethnicity,Market Segmentation,Psychographic Segmentation: Th

9、is basis of segmentation groups potential customers according to psychological/ personality traits, lifestyles, or values.,Market Segmentation,Behavioral Segmentation: This basis of segmentation divides customers into groups according to their knowledge of, attitude toward, use of, or response to a

10、product or service.,Market Segmentation,Variables considered in Behavioral Segmentation: Occasions (need/use) Benefits User Status Usage Rate Buyer-readiness stage Loyalty status Attitude,Market Segmentation,In the end, there are many different ways to segment a market. How you segment the market is

11、 your decision! Always keep your product or service in mind when you segment, or else your segmentation activities will be a waste of time and money.,Market Targeting,After you have identified the possible market segments and opportunities, which segments and how many segments to target or focus on

12、is your next step.,Market Targeting,Effective Segmentation Criteria: To be useful in your marketing efforts, market segments must rate favorably on five key criteria. The segments must be: Measurable Substantial Accessible Differentiable Actionable,Market Targeting,When evaluating different market s

13、egments, two factors must be considered: The segments overall attractiveness The companys objectives and resources,Market Targeting,Types of Targeting Decisions: Single-segment concentration Selective specialization Product specialization Market specialization Full market coverage,Market Targeting,S

14、ingle-segment concentration targeting: This choice involves concentrated marketing. The company gains a thorough understanding of the chosen segments needs and achieves a strong market presence (i.e. most luxury goods).,Market Targeting,Selective specialization targeting: A number of segments are se

15、lected, each objectively attractive and appropriate. Little or no synergy may exist among the segments, but each segment promises to make money for the company (i.e. car manufacturers).,Market Targeting,Product specialization targeting: Under this arrangement, the company specializes in making a cer

16、tain product for several segments. The product might be further specialized for each segment (i.e. Texas Instrument calculators). The risk is technological change might end the need for the product.,Market Targeting,Market specialization targeting: Focus is on serving the needs of a particular custo

17、mer group (i.e. defense contractors). The risks are budget cuts and group shrinkage.,Market Targeting,Full market coverage targeting: A attempt is made to serve all customer groups with all the products they might need. Only a few large companies can employ this targeting method effectively, but som

18、etime even they fail.,Market Targeting,Full market coverage targeting: Undifferentiated versus differentiated marketing Undifferentiated: ignores segment differences and offers only one product Differentiated: operates in several segment and offers different products for each Sales tend to be higher for differentiated marketing, but so are costs.,Market Targeting,Additional considerations: Segment-by-segment invasions: entering one segment at a time and avoiding letting rivals know which segment is next, good plannin