Segmentation, Targeting and Differentiation
Prepared and Presented by: Lyncia Noronha 40 Palak Goyal 42 SYBMS
Segmentation
Meaning
?
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them.
2 October 2013 Marketing Presentation Wilson College 3
Product differentiation
?
Market segments allow companies to create product differentiation strategies to target them.
2 October 2013
Marketing Presentation
Wilson College
4
Market Segmentation Strategies
?
Traditional Approaches to Market Segmentation
?
?
Mass Marketing Differentiated Marketing
? ?
Multisegment Approach Market Concentration Approach
?
Niche Marketing
Marketing Presentation Wilson College 5
2 October 2013
Bases for Segmenting Consumer Markets
? ?
Behavioral Segmentation
?
Segments based on actual behavior or product usage
Segments based on demographic factors (e.g., gender, age, income, education, etc.) Segments based on state-of-mind issues (e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.) Segments based on geographic location
Marketing Presentation Wilson College 6
Demographic Segmentation
?
?
Psychographic Segmentation
?
?
Geographic Segmentation
?
2 October 2013
Segmenting Consumer Markets
?
?
Sometimes, multiple attributes are combined to form segments Multi-attribute segmentation via geoclustering combines multiple variables to identify smaller, better-defined target groups
?
PRIZM Geoclustering system uses demographic, geographic, lifestyle, and behavioral characteristics
2 October 2013
Marketing Presentation
Wilson College
7
Segmenting Business Markets
?
Rackman and Vincentis proposed a segmentation scheme that classifies business buyers into three groups:
?
?
?
Price-oriented customers: best served via transactional selling Solution-oriented customers: best served by means of consultative selling Strategic-value customers: best served by means of enterprise selling
2 October 2013
Marketing Presentation
Wilson College
8
Segmentation, Marketing Mix, and Targeting
Creating the Marketing Mix
PRODUCT
PRICE
PLACE
2 October 2013
PROMOTION Marketing Presentation Wilson College
10
Goals for Marketing Mix
?
?
?
?
Create synergies Use resources effectively Maintain consistent and differentiated image Link to specific marketing goals and objectives
Marketing Presentation Wilson College 11
2 October 2013
Mass Marketing Strategy
Product
Price
Distribution
Promotion
Single Marketing Mix
All Customers in the Market
Undifferentiated
2 October 2013 Marketing Presentation Wilson College 12
Multisegment Strategy
Product Price Distribution
Promotion
Product
Price
Distribution
Promotion
Multiple Marketing Mixes
2 October 2013
Differentiated
Marketing Presentation
More Than One Market Segment
Wilson College 13
Market Concentration Strategy
Product
Price
Distribution
Promotion
Single Marketing Mix Differentiated
2 October 2013 Marketing Presentation
Focused on a Single Market Segment
Wilson College 14
Niche Marketing Strategy
Product
Price
Distribution
Promotion
Single Marketing Mix
2 October 2013 Marketing Presentation
Focused on a Small Niche Market Segment Differentiated
Wilson College 15
Customized Marketing Strategy
Product Price Distribution
Promotion
Product
Price
Distribution
Unique Marketing Mixes
2 October 2013
Promotion
Individual Customers
Marketing Presentation Wilson College 16
Target Marketing Strategies
?
Five basic strategies for target market selection:
? ? ? ? ?
(1) Single Segment Targeting (2) Selective Targeting (3) Mass Market Targeting (4) Product Specialization (5) Market Specialization
2 October 2013 Marketing Presentation Wilson College 17
Basic Target Marketing Strategies
2 October 2013
Marketing Presentation
Wilson College
18
Discussion Question
Can you think of a product that could be marketed effectively using a mass marketing approach? If so, explain and justify your answer. If not, what types of changes would have to be made to the product to make it appropriate for a mass marketing approach?
2 October 2013 Marketing Presentation Wilson College 19
Discussion Question
Many consumers and consumer advocates are critical of the one-to-one marketing approach due to personal privacy concerns. Marketers counter that one-to-one marketing can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks. Where do you stand on this issue? Why?
2 October 2013 Marketing Presentation Wilson College 20
Discussion Question
What are some of the ethical and legal issues involved in targeting sensitive groups such as children and seniors?
2 October 2013
Marketing Presentation
Wilson College
21
T
2 October 2013
Marketing Presentation
Wilson College
22
doc_341624784.pptx
Prepared and Presented by: Lyncia Noronha 40 Palak Goyal 42 SYBMS
Segmentation
Meaning
?
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them.
2 October 2013 Marketing Presentation Wilson College 3
Product differentiation
?
Market segments allow companies to create product differentiation strategies to target them.
2 October 2013
Marketing Presentation
Wilson College
4
Market Segmentation Strategies
?
Traditional Approaches to Market Segmentation
?
?
Mass Marketing Differentiated Marketing
? ?
Multisegment Approach Market Concentration Approach
?
Niche Marketing
Marketing Presentation Wilson College 5
2 October 2013
Bases for Segmenting Consumer Markets
? ?
Behavioral Segmentation
?
Segments based on actual behavior or product usage
Segments based on demographic factors (e.g., gender, age, income, education, etc.) Segments based on state-of-mind issues (e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.) Segments based on geographic location
Marketing Presentation Wilson College 6
Demographic Segmentation
?
?
Psychographic Segmentation
?
?
Geographic Segmentation
?
2 October 2013
Segmenting Consumer Markets
?
?
Sometimes, multiple attributes are combined to form segments Multi-attribute segmentation via geoclustering combines multiple variables to identify smaller, better-defined target groups
?
PRIZM Geoclustering system uses demographic, geographic, lifestyle, and behavioral characteristics
2 October 2013
Marketing Presentation
Wilson College
7
Segmenting Business Markets
?
Rackman and Vincentis proposed a segmentation scheme that classifies business buyers into three groups:
?
?
?
Price-oriented customers: best served via transactional selling Solution-oriented customers: best served by means of consultative selling Strategic-value customers: best served by means of enterprise selling
2 October 2013
Marketing Presentation
Wilson College
8
Segmentation, Marketing Mix, and Targeting
Creating the Marketing Mix
PRODUCT
PRICE
PLACE
2 October 2013
PROMOTION Marketing Presentation Wilson College
10
Goals for Marketing Mix
?
?
?
?
Create synergies Use resources effectively Maintain consistent and differentiated image Link to specific marketing goals and objectives
Marketing Presentation Wilson College 11
2 October 2013
Mass Marketing Strategy
Product
Price
Distribution
Promotion
Single Marketing Mix
All Customers in the Market
Undifferentiated
2 October 2013 Marketing Presentation Wilson College 12
Multisegment Strategy
Product Price Distribution
Promotion
Product
Price
Distribution
Promotion
Multiple Marketing Mixes
2 October 2013
Differentiated
Marketing Presentation
More Than One Market Segment
Wilson College 13
Market Concentration Strategy
Product
Price
Distribution
Promotion
Single Marketing Mix Differentiated
2 October 2013 Marketing Presentation
Focused on a Single Market Segment
Wilson College 14
Niche Marketing Strategy
Product
Price
Distribution
Promotion
Single Marketing Mix
2 October 2013 Marketing Presentation
Focused on a Small Niche Market Segment Differentiated
Wilson College 15
Customized Marketing Strategy
Product Price Distribution
Promotion
Product
Price
Distribution
Unique Marketing Mixes
2 October 2013
Promotion
Individual Customers
Marketing Presentation Wilson College 16
Target Marketing Strategies
?
Five basic strategies for target market selection:
? ? ? ? ?
(1) Single Segment Targeting (2) Selective Targeting (3) Mass Market Targeting (4) Product Specialization (5) Market Specialization
2 October 2013 Marketing Presentation Wilson College 17
Basic Target Marketing Strategies
2 October 2013
Marketing Presentation
Wilson College
18
Discussion Question
Can you think of a product that could be marketed effectively using a mass marketing approach? If so, explain and justify your answer. If not, what types of changes would have to be made to the product to make it appropriate for a mass marketing approach?
2 October 2013 Marketing Presentation Wilson College 19
Discussion Question
Many consumers and consumer advocates are critical of the one-to-one marketing approach due to personal privacy concerns. Marketers counter that one-to-one marketing can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks. Where do you stand on this issue? Why?
2 October 2013 Marketing Presentation Wilson College 20
Discussion Question
What are some of the ethical and legal issues involved in targeting sensitive groups such as children and seniors?
2 October 2013
Marketing Presentation
Wilson College
21
T
2 October 2013
Marketing Presentation
Wilson College
22
doc_341624784.pptx