Chapter 3 Marketing Segmentation. What is Marketing Segmentation? Who uses market segmentation? How...

Chapter 3

Marketing Segmentation

What is Marketing Segmentation?

• Who uses market segmentation?• How does market segmentation operate?

Market Market SegmentationSegmentation

The process of dividing a potential market into distinct

subsets of consumers and selecting one or more

segments as a target market to be reached with a distinct

marketing mix.

Mass Mass MarketingMarketing

Offering the same product and marketing mix to all

consumers.

PositioningPositioningEstablishing a specific image

for a brand in relation to competing brands.

Bases for Segmentation

• Geographic Segmentation• Demographic Segmentation• Psychological Segmentation• Psychographic Segmentation• Sociocultural Segmentation• Use-Related Segmentation• Usage-Situation Segmentation• Benefit Segmentation• Hybrid Segmentation Approaches

AIOsAIOs

Psychographic variables that focus on activities, interests, and opinions. Also referred

to as Lifestyle.

Hybrid Segmentation Approaches

• Psychographic-Demographic Profiles• Geodemographic Segmentation• SRI Consulting’s Values and Lifestyle System

(VALSTM)

Criteria For Effective Targeting of Market Segments

• Identification• Sufficiency• Stability• Accessibility

Implementing Segmentation Strategies

• Concentrated Versus Differentiated Marketing• Countersegmentation

Counterseg-Counterseg-mentation mentation StrategyStrategy

A strategy in which a company combines two or

more segments into a single segment to be targeted with

an individually tailored product or promotion

campaign.