Market Segmentation

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  1. Market Segmentation
    Involves dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.

    Each subset of consumers have common needs or characteristic.
  2. Criteria for Effective Targeting of Market Segment

    Identification: Can identify and measure characteristic.

    Sufficiency: Size and profitability of segment.

    Stable: Segment is stable in terms of need, demographics, and psychological factors.

    Accessibility: Economically accessible.
  3. STP Model
    Segmenting: Select a market, apply those segmentation variables that are useful in helping to differentiate between consumer segments, and then assess each segment and decide on which should be targeted with marketing messages.

    Targeting:Select the number of groups to be targeted and then rank them in order of importance. Develop marketing strategies

    • Positioning: Select meaningful attributes that
    • will help differentiate the product/service from its competitors. Apply positioning through marketing strategy and tactics
  4. Implementing Segmentation Strategies - Concentrated and Differentiated marketing.
    Concentrated Marketing: Targeting one segment with a unique marketing mix.

    Differentiated Marketing: Targeting several segments with distinct, individual marketing mixes.
  5. 9 Potential Segmentation Bases

    • Psychograghic (activities, interests, opinions)
    • Psychological (needs-motivation, personality)

    • Demographic
    • Use Related
    • Geographic

    • Benefit (Funtional or Emotional)
    • Use situational
    • Sociocultural
    • Hybrid
Card Set
Market Segmentation
Market Segmentation
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