Figure 8.4 Possible Levels of Segmentation
Identifying Market Segments and Targets
What is a Market Segment?
A market segment consists of a group of customers who share a similar set of needs and wants.
Segmenting Consumer Markets
Geographic
Demographic
Psychographic
Behavioral
Demographic Segmentation
Behavioral Segmentation Based on Needs and Benefits
Age and Life Cycle
Life Stage
Gender
Income
Generation
Social Class
Race & Culture
Behavioral Segmentation: Behavioral Variables
Porter’s Five Forces Model
Heavy and Light Users of Common Consumer Products
Figure 8.3 Behavioral Segmentation Breakdown
Effective Segmentation Criteria
- Measurable
- Substantial
- Accessible
- Differentiable
- Actionable
Loyalty Status
Ford’s Model T Followed a Mass Market Approach
The Brand Funnel Illustrates Variations in the Buyer-Readiness Stage
- Hard-core
- Split loyals
- Shifting loyals
- Switchers
- Aware
- Ever tried
- Recent trial
- Occasional user
- Regular user
- Most often used
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