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Lecture Marketing management: Chapter 8 – Nguyễn Thị Trang Nhung

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Lecture Marketing management - Chapter 8: Identifying market segments and targets presentation of content: Market segmentation, choosing target markets, steps in segmentation process.... And other contents.

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8 Identifying Market Segments and Targets

1

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Market Segmentation

Types of Segmentation

80 percent of a company’s sales

are generated by 20 percent

of its loyal customers

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• Simplified marketing plan

• Competitors can identify unmet needs and wants and then steal customers

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Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-5

attractive target markets?

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Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-6

Effective Targeting Requires…

 Identify and profile distinct groups of buyers who differ in their needs and preferences

 Select one or more market segments to enter

 Establish and communicate the distinctive

benefits of the market offering

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Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-7

What is a Market Segment?

A market segment consists of a group

of customers who share a similar set of

needs and wants

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Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-8

Segmenting Consumer Markets

Geographic Demographic Psychographic Behavioral

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Market Segmentation

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making process

Decision-demographic

Statistics that describe a population in

terms of personal characteristics such as

age, gender, income, marital status, and

ethnic background.

psychographic

Grouping people with similar attitudes, interests, and opinions, as well as lifestyles and shared values.

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Market Segmentation

Types of Segmentation

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Geographic Segmentation

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-13

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Claritas’ Prizm

 Education and affluence

 Family life cycle

 Urbanization

 Race and ethnicity

 Mobility

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Age and Lifecycle Stage

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Gender and Income

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Generational Influences

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Race and Culture

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-19

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Psychographic Segmentation

and The VALS Framework

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-20

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Behavioral Segmentation Based

on Needs and Benefits

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-21

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Behavioral Segmentation:

Decision Roles

Initiator Influencer Decider Buyer User

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Figure 8.2 Example of a Brand Funnel

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-24

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Figure 8.3 Behavioral

Segmentation Breakdown

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Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-27

Segmenting for Business Markets

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Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-28

Steps in Segmentation Process

 Segment acid test

 Market mix strategy

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Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-29

Effective Segmentation Criteria

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Porter’s 5 Forces Model

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-30

Threat of Rivalry

Threat of Supplier Bargaining Power

Threat of Buyer Bargaining Power

Threat of New Entrants Threat of

Substitutes

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Figure 8.4 Possible Levels

of Segmentation

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-31

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attractive target markets?

Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 8-32

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