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Chapter Seven Segmentation, Targeting and PositioningIdentify segmentation variablesDevelop profiles of the segmentsEvaluate segments’ attractiveness And fit with the firmSelect the target segmentsDecide on the market positioningDevelop the integrated marketing mix7.1 Market Segmentation1. Definition: dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes2. Benefits of market segmentationThe overall objective of using a market segmentation strategy is to improve a company’s strategy competitive position and better serve the needs of its customers. Four major benefits: products---meet the needs or the market place effective and cost efficient promotional strategies market competition evaluation insight on marketing strategies3. Trends in Market Segmentation becoming increasingly sophisticated computer programs and databases assistance more sophisticated segmentation bases 7.1.1 Bases of market segmentation (four basic variables)1. Geographic segmentation on the basis of population location; rather large and too heterogeneous for effective segmentation without careful consideration of additional factors2. Demographic segmentation (most common approach) demographic variables: age, gender, income, occupation, education, household size, lifestyle, stage in the family lifecycle, race, religionReasons (advantages)They are easy to identify and measure.They are associated with the sales of many products and services.They are typically referred to in describing the audiences of advertising media so that media buyers and others can easily pinpoint the desired target market.3. Psycho-graphic segmentation psychological profiles of different consumers developed from the responses of consumers asked to agree or disagree with AIO (activities, interests and opinions) statements an important tool for understanding the behavior of present and potential target markets4. Behavioral segme