Chapter 6 Segm_Targ Posi.pptVIP

Chapter 6Segmentation, Targeting and Positioning Segmentation, Targeting and Positioning Definition: the process of identifying specific segments---whether they be country groups or individual consumer groups---of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix. Global Market Segmentation Demographic Segmentation Based on measurable characteristics of populations, such as: Segmenting Global Markets by Income Population Age Segmentation Gender Segmentation Education Segmentation Occupation Segmentation Psychographic Segmentation Involves grouping people in terms of their attitudes,values,and lifestyles. Behavior Segmentation Focused on whether or not people buy and use a product ,as well as how often, and how much they use or consume. Consumers can be categorized in terms of Usage rates: such as, heavy,medium,light and non-user. User status: potential user, non-users,regulars,first-timers,and users of competitors’ product. Example : Markets can be segmented by how often or how heavily consumers use a specific product Pareto’s Principle or 80/20 Principle - 80% of revenue generated by 20% of customers Benefit Segmentation Focused on the numerator of the value equation: the B in V = B/P. Ethnic Segmentation In many countries, the population includes ethnic groups of significant size. Segmentation, Targeting and Positioning First, there is a tendency to overstate the size and short-term attractiveness of individual country markets. Second, what global marketers can set for themselves is to target a country. Third, there is a danger that management’s network of contacts will emerge as a primary criterion for targeting. Segmentation, Targeting and Positioning Segmentation, Targeting and Positioning Target Market Strategy Options Companies might develop one marketing mix strategy that is appropriate for all members of the tot