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IDENTIFYING MARKET SEGMENTSAND TARGETS

Leilani Estebat

September 16, 2013

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1. Segmenting Consumer Markets(What)

2. Reasons to segment (Why)

3. Steps and Criteria (How)

4. Summary

Outline:

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Segmenting Consumer Markets

GDP-b-S1. Geographic

2. Demographic

3. Psychographic

4. Behavioral Segmentation

1. Market Segmentation

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1. Countries

2. States

3. Regions

4. City

5. Neighborhoods

1. Segmenting Consumer Markets: Geographic

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1. Age & Life-Cycle Stage

1. Segmenting Consumer Markets: Demographic

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1. Age & Life-Cycle Stage

2. Life Stage

1. Segmenting Consumer Markets: Demographic

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1. Age & Life-Cycle Stage

2. Life Stage

3. Gender

1. Segmenting Consumer Markets: Demographic

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1. Age & Life-Cycle Stage

2. Life Stage

3. Gender

4. Income

1. Segmenting Consumer Markets: Demographic

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1. Age & Life-Cycle Stage

2. Life Stage

3. Gender

4. Income

5. Generation

1. Segmenting Consumer Markets: Demographic

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1. Age & Life-Cycle Stage

2. Life Stage

3. Gender

4. Income

5. Generation

6. Race & Culture

1. Segmenting Consumer Markets: Demographic

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The VALS Segmentation System

1. Segmenting Consumer Markets: Psychographic

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A. Decision Roles

1. Initiator

2. Influencer

3. Decider

4. Buyer

5. User

1. Segmenting Consumer Markets: Behavioral

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B. Behavioral Variables1. Occasions

2. Benefits

3. User Status

4. Usage Rate

5. Buyer Readiness Stage

6. Loyalty Status

7. Attitude

1. Segmenting Consumer Markets: Behavioral

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Buyer - Readiness Stage

• Aware• Ever tried• Recent trial• Occasional user• Regular user• Most often used

1. Segmenting Consumer Markets: Behavioral

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Loyalty Status

1. Segmenting Consumer Markets: Behavioral

Hard Core

Split loyals

Shifting loyals

Switchers

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1. Segmenting Consumer Markets: Behavioral

Target Market

Unaware Aware

Not tried

Negative opinion Neutral Favorable

Opinion

Tried

Rejector Not Yet Repeated Repeated

Loyal to other Brand Switcher Loyal to

Brand

Light user Regular User Heavy User

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2. Reasons to Segment

Better satisfy customer needs and wants

Growth or Innovation

Increased market share

Higher profits

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A. Steps in Segmentation Process

3. Steps and Criteria

Needs-Based Segmentation

Segment Identification

Segment Attractiveness

Segment Profitability

Segment Positioning

Segment Acid Test

Marketing - Mix Strategy

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B. Effective Segmentation Criteria

3. Steps and Criteria

•Measurable

•Substantial

•Accessible

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•Differentiable

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•Actionable

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1. What? Market segments and targets

2. Why? Growth and profitability

3. How?a. Proper segmentation process

b. Effective segmentation criteria

4. Summary

Identify…

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IDENTIFYING MARKET SEGMENTSAND TARGETS

Leilani Estebat

September 16, 2013