Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Segmentation

No description
by

Cinthia Satornino

on 19 July 2012

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Segmentation

70% failure rate.
SEGMENTATION
What are Markets?
Consumer Market:
Purchase products to use them, not to make a profit
Business Market:
Purchase products for resale, direct use in producing other products, or general daily operations
Where do they fit into Marketing?
Market Analysis
Market Selection
Marketing Mix
Customer
Acquisition
Customer
Loyalty and
Retention
Product
Price
Place
Promotion
What does the market look like?
1. Identify the appropriate targeting strategy
2. Determine which segment variables to use
3. Develop market segment profiles
4. Evaluate relevant market segments
5. Select specific target markets
Strategic Marketing Framework
1. Identify the appropriate targeting strategy.
Homogeneous market
Concentrated
Targeting Strategy
Market Segmentation:
Dividing a total market into groups or segments that consist of people and organizations with relatively similar product needs.
Heterogeneous market
Single Marketing Mix
Multiple segments
One marketing mix
Target market is homogeneous
Undifferentiated
Targeting Strategy
Differentiated
Targeting Strategy
Multiple Marketing Mixes
Multiple segments
Marketing
Mix
TARGET SEGMENT 1
TARGET SEGMENT 3
TARGET SEGMENT 2
Marketing
Mix
Marketing
Mix
TARGET SEGMENT 1
TARGET SEGMENT 2
TARGET SEGMENT 3
One marketing mix
2. Determine which segmentation variables to use.
characteristics of individuals, groups
or organizations used to divide a
market into segments.
For consumer markets:
Demographic
Behavioristic
Psychographic
Geographic
Age
Gender
Race
Ethnicity
Income
Education
Occupation
Family Size
Religion
Social Class
Region
Market density
Terrain
Climate
City Size
County Size
State Size
Urban/Suburban/Rural
Personality
Motives
Lifestyles
Volume Usage
End Use
Benefit Expectation
Brand Loyalty
Price Sensitivity
Three Shades of Green:
12% buy green products regularly
68% "Light Green" buy sometimes
20% never buy green
3. Develop market segment profiles
4. Evaluate relevant market segments
Determine which segments will work for the company
Sales Estimates
Market potential
the total amount of a product that customers will purchase within a specified period at a specific level of industry-wide marketing activity.
Company sales potential
the maximum percentage of market potential that an individual firm within an industry can expect to obtain for a specific product.
market potential = absolute limits
magnitude of industry-wide marketing activities
How many competitors exist?
What are their strengths and weaknesses?
Do several have major market share?
Do several dominate the market?
Can our company compete?
Will there be new competitors entering the market?
Cost Estimate
Developing a marketing mix for a new segment is expensive.

To reach certain segments, the cost may be so high, that the segment is considered inaccessible.

5. Select Specific Target Markets
by making decisions and engaging in the activities designed to create a certain perception of the product in the customer's mind.
Benefits of Segmentation
Segmentation enables marketers to:

Provide more customized marketing - satisfy customer needs
Identify and satisfy specific benefits sought by particular groups.
Select more percisely which markets to service.
Be more efficient with marketing resources.
Segmentation limits:

Mass production, which offers economies of scale.
Standardization of service, which increases delivery speed and efficiency.
ABOUT ME:
THE FACTS

Doctoral Student
Research Interest: Networks
15 years of experience in Marketing Databases
MBA in Marketing and Management
The Reality:
MOM
Workaholic
Social
Mouthy
Artist
Perfectionist
Wife
Sarcastic
Similar characteristics = Similar Product Needs
Profiles explain the similarities WITHIN segments
and the differences BETWEEN segments.

Such profiles help marketers determine which segments are most attractive to the organization and what strategy is effective.
Limitations of Segmentation
What segments would you, as FSU undergraduates, be in?
Business Markets
Geographic Location
Type of Organization
Customer Size
Product Use
Competitive Assessment
need-ability-willingness-authority
Five Conditions for Effective Segmentation:
1. Heterogeneous need
2. Identifiable and Divisible Segments
3. Compare between Segments
4. Profit Potential must exceed Cost
5. Reachable Segment
For your project:
1. Identify segmentation variables
you will use (Table Format) - For an A, don't just use Demographic

2. Profile your target segments
and make sure that you tell me which you picked and why. This can be done just by demographics and thinking deeply about the characteristics of the segments (moms vs. students - this is B work) or it can be done by actually finding out info about segments using unique variables from other sources (this is A work)

3. Include Sales Estimates (market potential and company sales potential)
. Can be as simple as market potential is population size, and company sales potential is average expenditures per year. But make sure to use terms from the textbook to explain how you arrived at those numbers.

4. Include a section on your competition.
Not just a list, but how you are better and different. This is a good time to refer to your value proposition.
Full transcript