Segmentation, Targeting, and Positioning: Building the Right Relationships with the Right Customers
Chapter 8
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Objectives
Be able to define the three steps of target marketing: market segmentation, target marketing, and market positioning.
Understand the major bases for segmenting consumer and business markets.
1
Objectives
Know panies identify attractive market segments and how they choose a target marketing strategy.
Comprehend panies position their products for petitive advantage.
2
Sells multiple brands within the same product category for a variety of products
Brands feature a different mix of benefits and appeal to different segments
Has also identified different niches within certain segments
Product modifications are useful: Tide offers seven different product formulations to serve different niches’ needs
Procter & Gamble
Case Study
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Definition
Market Segmentation:
Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
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Market Segmentation
Segmenting Consumer Markets
Segmenting Business Markets
Segmenting International Markets
Requirements for Effective Segmentation
Geographical segmentation
Marketing mixes are customized geographically
Demographic segmentation
Most popular segmentation
Demographics are closely related to needs, wants and usage rates
Psychographic segmentation
Lifestyle, social class, and personality-based segmentation
Behavioral segmentation
Typically done first
Topics
5
Geographic Segmentation Variables
Market Segmentation
World Region or Country
. region
State
City
Neighborhood
City or Metro Size
Density
Climate
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Demographic Segmentation Variables
Market Segmentation
Age
Gender
Family size
Family life cycle
e
Occupation
Education
Religion
Race
Generation
Nationality
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Behavioral Segmentation Variables
Market Segmentation
Occasions
Benefits
User Status
User Rates
Loyalty Status
Readiness Stage
Attitude
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