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1、Chapter 5CustomerCustomer-Driven Marketing Strategy:Driven Marketing Strategy:Market SegmentationMarket SegmentationCustomer-Driven Marketing StrategyMarket SegmentationMarket TargetingMarket PositioningSTPQ Q1 1:What is market segmentation?What is market segmentation?Market SegmentationIn 1956,Wend
2、ell Smith first proposed the idea of market segmentation.One of the most valuable marketing wisdomsImprove a companys marketing accuracyMarket SegmentationDividing a market into smaller segments with distinct needs,characteristics,or behaviors who might require separate products or marketing mixes.M
3、arket SegmentationSegments=piecesIf we regard the whole market as a big cakeMarket segmentation is the process of cutting the cake into several piecesQ2:Q2:Why segment the market?Why segment the market?The reasons for market segmentationBuyers are too numerous and diverse in their buying requirement
4、sA company cannot serve all customers in a broad marketMarketers need to identify the market segments that it can serve bestQ3:Q3:What are the theoretical bases for market What are the theoretical bases for market segmentation?segmentation?Theoretical bases for Market SegmentationTheoretical bases f
5、or Market SegmentationAbsolute difference in consumer demand necessary conditionRelative homogeneity in consumer demand sufficient conditionQ4:Q4:How to segment the market?How to segment the market?Steps in Market SegmentationIdentify bases for segmenting the marketDevelop segment profilesGeographic
6、 segmentationDemographic segmentationPsychographic segmentationBehavioral segmentationSegmenting Consumer MarketsSegmenting Consumer MarketsGeographic segmentationGeographic segmentationWorld region or countryCountry regionCity or metro sizeDensityClimateTsingtao BeerConsumers in different regions h
7、ave different taste preference.Southern consumers prefer low-alcohol,light flavor beerNorthern consumers prefer high-alcohol,full-bodied flavor beer.Tsingtao full-bodied beerTsingtao DraftDemographic SegmentationDemographic SegmentationAge GenderIncomeOccupationFamily sizeFamily life-cycleEducation
8、ReligionRaceGenerationNationalityPsychographic SegmentationPsychographic SegmentationSocial ClassLifestylePersonalityHarleyHarley-Davidson Brand Personality:Ruggedness&Rebel Davidson Brand Personality:Ruggedness&Rebel Behavioral SegmentationBehavioral SegmentationBenefits soughtOccasionsUser statusU
9、sage rateLoyalty statusBenefits SoughtSegmenting Business MarketsSegmenting Business MarketsConsumer and business marketers use many of the same variables to segment their markets.Additional variables include:Customer operating characteristicsPurchasing approachesSituational factorsPersonal characteristicsQ5:Q5:What are the requirements for effective What are the requirements for effective segmentation?segmentation?Requirements for Effective SegmentationMeasurableAccessibleSubstantialDifferentiableActionableTHE END