Market Segmentation and
Strategic Targeting
Why Segmentation
is Necessary?
Consumer needs differs
Differentiation helps products compete
Segmentation helps identify media
Consumer-Rooted Segmentation Bases
Demographics
Geodemographic
Personality Traits
Lifestyles
Sociocultural
Age
Gender
Marital Status
Income, Education and Occupation
Family life cycle
Based on geography and demographics
Entirely focus on cultural
Target Marketing Strategies
Undifferentiated Marketing
(Mass Marketing)
Differentiated Marketing
Concentrated Marketing
Focus target on everyone
(Same Group)
Focus on certain group
Eg: vanila coke is focus on female
Customized the product on several group
( limited number of production but not all consumer can buy it)
Eg: Ferari car they focus their target market to people who are rich only
⭐ Criteria for Effective Targeting ⭐
Identifiable
Sizeable
Stable
Accessible
Congruent
Tally the resources with the company's objectives and resume
Able to reach by marketers in an affordable way
Eg: Yakult sell their product from house to house
Consumers are NOT likely to change very quickly (loyalty)
Eg: Colgate how many generation use it as the brand of their toothpaste
It's must be large enough to be profitable to the marketer
Able to find the consumer characteristic
Positioning
express through promotion,stating the product's or service capacity to deliver specific benefits
Eg: Everyone think about fried chicken it will be KFC