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Principles of Marketing - Segmentation Targeting

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29 views

Principles of Marketing - Segmentation Targeting

Uploaded by

8ps58ynbz5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Principles of Marketing DBM1205

self register : CLM_RC-DBM1201


DBM1205 Principles of Marketing (JAN - APR)
KEYWORD : DBM1205#20

Mr. Wilfred Wachira


Email: [email protected]
Market Segmenting, Targeting, and
Positioning

Hardly do most companies ever sell to all possible clients. Most


select a group of people to whom it will sell its products to.
Understanding customers is the first step towards a successful
marketing program
To arrive at this, companies must segment, target and position
their products
Why Segmentation and targeting ?
Market Segmenting, Targeting, and Positioning
Segmentation
 The segmenting process broadly looks at a market, then carefully uses various variables to
come up with the differentiating characteristics among markets. How would you segment
a market?
 There are four broad segmentation strategies (segmentation bases) available to a
marketer:
Behavioural Segmentation

This is segmentation based on how customers behave with or act


towards products(use). The variables include:-
 Occasions-regular, special, holiday, seasonal

 User status – non-user, ex user, potential user, first time user, regular user
 Loyalty status - none, medium, strong, absolute
 Buyer readiness stage - unaware, aware, informed, interested, desirous, intending to
buy
 Attitude towards the product – positive, negative, enthusiastic, indifferent, hostile
 Benefits sought –quality, after sale service, economy, convenience, speed
 User rates –light, medium, heavy users e.g. smokers
 Application—segmenting buyers by the way in which they use products e.g Jeans/denim
Behavioural Segmentation
Demographic Segmentation

Segmenting buyers by personal characteristics:-


 Age- Babies, youths, Parents
 Gender-Male, Female

 Family life cycle- single, married, m. with children (how many), single parents,
old parents
 Occupation – student, profession, entrepreneurs, artist, unemployed, retired
 Education level- secondary, college, never been to form al school
 Religion – Christian, Muslim, Hindu, Jewish

 Race-black, white, Asian

Demographic segmentation is the most commonly used technique because of


the ready access to extensive global data and information
Demographics Segmentation

AGE INCOME GENDER


Psychographic Segmentation

This is the use of personal and society set characteristics in trying to


distinguish between markets. The major variables used are :-
 Social class- lower lowers, upper lowers, working class, middle class, upper middle
class, lower uppers, upper uppers (elite)
 Different consumers fall in different social classes. This depends mainly on their
buying power
 Personality- outgoing, ambitious, compulsive, authoritarian, friendly, aggressive,
rugged,social,introverts,shy e.g x-treme sporting gear,

 Lifestyle– achievers, strivers, survivors e.t.c * see next slide


Psychographic Segmentation

The Value and Lifestyle (VALS) Types

HUSTLERS??
Requirements for Effective Segmentation

1.Measurable –The size, purchasing power, and profiles of the


segments can be measured
2.Accessible -The market segments can be effectively reached and
served. Could include geographic accessibility, political and legal barriers,
technological barriers, or social barriers.
3.Substantial –The market segments are large or profitable enough to
serve. A segment should be the largest possible homogenous
group worth pursuing with a tailored marketing program
4.Differentiable – segments should be conceptually different and
should respond differently to marketing mix elements
5.Actionable – meaning effective programs can be designed and
executed
Benefits of Segmentation and Targeting??

 - Avoid head-on competition with other firms trying to capture the


same customers
 Develop new offerings and expand profitable brands and products lines
 Remarket older, less-profitable products and brands
 Identify early adopters
 Redistribute money and sales efforts to focus on your most profitable customers

 PARETTO RULE??
also known as the 80/20 rule, states that, for many events, roughly
80% of the effects come from 20% of the causes.
Target Marketing


Target Market Strategies


Target Market Criteria

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