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Seg m ent M arketing
Targeting a gro u p of cu sto m erswho share a sim ilar set of
nee d s an d wants.
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F lexi bl e M arketing O fferings
N ake d so lu tion Pro duc t an d servi c e
e le m ents that a llseg m ent m e mb ers va lu e
Disc retionary options So m e seg m ent
m e mb ers va lu e O ptions m ay c arry
a dd itiona l c harges
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Fig u re 8.1 B asi c M arket Preferen c e Patterns
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N ic he M arketers
E nterprise R ent-a-Car targets the ins u ran c e-rep la c e m ent m arket
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N ic he M arketers: T oms
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T he E xperien c e Ec ono m y
Co mm od ity
G oo d s
Servi c es
E xperien c e
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Cu sto m erization
Co mb ines operationa lly d rivenm ass cu sto m ization with cu sto m ize d
m arketing in a way that e m powersc ons um ers to d esign the
pro duc t an d servi c e offeringof their c hoi c e.
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Fig u re 8.2 E xa m p les of M arket Cu sto m ization
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Seg m enting Cons um er M arkets
G eographi c
De m ographi c
Psy c hographi c
B ehaviora l
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C laritas Priz m
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De m ographi c Seg m entation
A ge an d Life Cy cl e
Life Stage
G en d er
Inc om e
G eneration
So c ia l C lass
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T oyota S c ion targets G en Yc ons um ers
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Fig u re 8.3 Profi ling Am eri c an G enerations
GI G eneration 1901-1924
Silent G eneration 1925-1945B a b y B oo m ers
1946-1964
G eneration X
1965-1977
G eneration Y 1978-1994M illenia ls
1995-2002
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Fig u re 8.4
T he VA LS Seg m entation Syste m
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B ehaviora l Seg m entation
Decision RolesInitiator
Inf lu en c er Dec id er Bu yer
User
Behavioral VariablesOcc asions
B enefits User Stat u s Usage R ate
Bu yer- R ea d iness Loyalty Stat u s A ttitud e
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M ob ils 5 Cu sto m er Seg m ents
Road Warr iors
Gen F
rue lues
Home od ies
Pr i e oppers
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Loya lty Stat u s
Swit c hers
Shifting loya ls
Sp lit loya ls
Har d -c ore
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T he Conversion M od e l
Converti bl e Sha llow A verage E ntren c he d
Strong lyu navai la bl e
Amb iva lent A vai la bl eWeak ly
u navai la bl e
Users N on u sers
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Fig u re 8.5 B ehaviora lSeg m entation B reak d own
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Seg m enting for Bu siness M arkets
De m ographi c
O perating Varia bl e
P u r c hasing Approa c hes
Sit u ationa l Fa c tors
Persona lChara c teristi c s
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BB&T B ank s B -to- Ba d vertising
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M od e ls of Seq u entia l Seg m entation
Stage of decision First-tim e prospe c tsN ovic es
Sophisti c ates
Orientation Pric e-oriente d
Solu tion-oriente d
Strategi c -va lu e
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Steps in Seg m entation Pro c ess
N ee d s- b ase d seg m entation
Seg m ent id entifi c ation
Seg m ent attra c tiveness
Seg m ent profita b ility
Seg m ent positioning
Seg m ent a c id test
M arketing- M ixStrategy
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Fig u re 8.6 Patterns of T arget M arket Se le c tion
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Fig u re 8.6 Patterns of T arget M arket Se le c tion
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Fig u re 8.6 Patterns of T arget M arket Se le c tion
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E ffec tive Seg m entation Criteria
M eas u ra bl e
S ub stantia l
Acc essi bl e
Differentia bl e
Ac tiona bl e
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Fig u re 8.7 Seg m ent- b y-Seg m ent Invasion P lan
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Pepsi u se d m ega m arketing in Ind ia
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M arketing De b ate
Is m ass m arketing d ea d ?
Take a position:1. M ass m arketing is d ea d .
2. M ass m arketing is sti ll a via bl e wayto bu ild a profita bl e b ran d .
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M arketing Dis cu ssion
How wo uld you cl assify you rse lf inter m s of the vario u s seg m entations c he m es?