DISCUSSION

TARGET MARKETING

3 Steps for effective target marketing

Market Segmentation
Market Targeting
Market Positioning
LEVELS OF MARKET SEGMENTATION

 Segment Marketing
 Niche Marketing
 Local Marketing
 Customerization

Henry Ford
First to mass market
automobiles
Segment Marketing

3 Patterns of Preference Segments

Homogenous Diffused Clustered

Niche Marketing
Local Marketing
Customerization
SEGMENTING CONSUMER MARKETS

 2 Variables used:
 Consumer characteristics
 Geographic
 Demographic
 Psychographic
SEGMENTING CONSUMER MARKETS

 Behavioral variables
 Occasions – time of day, week, month and year
 Benefits
 User status – non users, ex-users, potential, first time
user and regular users
 Usage rate - light, medium and heavy product users
 Buyer-readiness stage – unaware, aware, informed,
interested, desire and intend to buy
 Loyalty status – hard-core, split loyals, shifting, switchers
 Attitude – enthusiastic, positive, indifferent, negative
and hostile
BASES FOR SEGMENTING
BUSINESS MARKETS
BASES FOR SEGMENTING
BUSINESS MARKETS
SEQUENTIAL SEGMENTATION
SEQUENTIAL SEGMENTATION

• Business buyers seek different benefit

bundles based on their stage in the purchase
decision process.
1. First-time prospects
2. Novices
3. Sophisticates
• Business buyers segmentation schemes
1. Price-oriented customers - transactional
2. Solution oriented customers - consultative
3. Strategic value customers - enterprise
MARKET TARGETING
Steps in the Segmentation Process
EFFECTIVE SEGMENTATION
CRITERIA
 Measurable
 Substantial
 Accessible
 Differentiable
 Actionable
FIVE PATTERNS OF TARGET
MARKET SELECTION
▫ Single-segment concentration
▫ Selective specialization
▫ Product specialization
▫ Market specialization
▫ Full market coverage
TARGET MARKET SELECTION

 Additional considerations
 Segment-by-segment invasion plans
 Updating segmentation schemes
 Ethical choice of target markets
MARKETING DEBATE

 Is Mass Marketing dead?

 There are brands that certainly benefit from mass
marketing. Take any kind of fast moving consumer
good or product that appeals to the masses. They
need a method of getting the word out and let's
face it - the best way to do so is through the
regular marketing channels that we've all come to
know and love.