Marketing 2
Chapter 7
Four steps in designing a customer-driven marketing strategy.
Market segmentation: dividing a market into smaller segments with distinct needs,
characteristics or behaviour that might require separate marketing strategies or mixes.
Market targeting: the process of evaluating each market segment’s attractiveness and
selecting one or more segment to enter.
Differentiation: differentiating the market offering to create superior customer value.
Positioning: arranging for a market offering to occupy a clear, distinctive and desirable
place relative to competing products in the minds of target consumers.
Market segmentation
Segmenting consumer markets:
Geographic segmentation: dividing a market into different geographical units, such as
nations, states, regions, countries, cities or neighbourhoods.
Demographic segmentation: dividing the market into segments based on variables such as
age, gender, family size, family life cycle, income, occupation, education, religion, race,
generation and nationality.
Age and life-cycle segmentation: dividing a market into different age and life-cycle
groups.
Gender segmentation: dividing a market into different segments based on gender.
Income segmentation: dividing a market into different income segments.
Psychographic segmentation: dividing a market into different segments based on social
class, lifestyle or personality characteristics.
Behavioural segmentation: dividing a market into segments based on consumer
knowledge, attitudes, uses or responses to a product.
Occasions segmentation: dividing the market into segments according to occasions
when buyers get the idea to buy, actually make their purchase or use the purchases
item.
Benefit segmentation: dividing a market into segments according to the different
benefits that consumers seek from the product.
User status: segmented into non-users, ex-users, potential users, first-time users, and
regular users of a product. Marketers want to reinforce and retain regular users,
attract targeted non-users, and reinvigorate relationships with ex-users.
Usage rate: segmented into light, medium and heavy product users.
Loyalty status: segmented by consumer loyalty.
Chapter 7
Four steps in designing a customer-driven marketing strategy.
Market segmentation: dividing a market into smaller segments with distinct needs,
characteristics or behaviour that might require separate marketing strategies or mixes.
Market targeting: the process of evaluating each market segment’s attractiveness and
selecting one or more segment to enter.
Differentiation: differentiating the market offering to create superior customer value.
Positioning: arranging for a market offering to occupy a clear, distinctive and desirable
place relative to competing products in the minds of target consumers.
Market segmentation
Segmenting consumer markets:
Geographic segmentation: dividing a market into different geographical units, such as
nations, states, regions, countries, cities or neighbourhoods.
Demographic segmentation: dividing the market into segments based on variables such as
age, gender, family size, family life cycle, income, occupation, education, religion, race,
generation and nationality.
Age and life-cycle segmentation: dividing a market into different age and life-cycle
groups.
Gender segmentation: dividing a market into different segments based on gender.
Income segmentation: dividing a market into different income segments.
Psychographic segmentation: dividing a market into different segments based on social
class, lifestyle or personality characteristics.
Behavioural segmentation: dividing a market into segments based on consumer
knowledge, attitudes, uses or responses to a product.
Occasions segmentation: dividing the market into segments according to occasions
when buyers get the idea to buy, actually make their purchase or use the purchases
item.
Benefit segmentation: dividing a market into segments according to the different
benefits that consumers seek from the product.
User status: segmented into non-users, ex-users, potential users, first-time users, and
regular users of a product. Marketers want to reinforce and retain regular users,
attract targeted non-users, and reinvigorate relationships with ex-users.
Usage rate: segmented into light, medium and heavy product users.
Loyalty status: segmented by consumer loyalty.
