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Chapter 9 Identifying Market Segments and Selecting Target Markets PowerPoint by Karen E. James Louisiana State University - Shreveport ©2003 Prentice Hall, Inc. To accompany A Framework for Slide 1 in .Objectives Learn how companies | Chapter 9 Identifying Market Segments and Selecting Target Markets PowerPoint by Karen E. James Louisiana State University - Shreveport Slide in Chapter 9 Objectives Learn how companies identify the segments that make up a market. Understand the criteria companies use to choose the most attractive market segments. Slide in Chapter 9 Target Marketing Target marketing requires marketers to take three major steps: Market segmentation: Identifying and profiling distinct groups of buyers who differ in their needs and preferences. Market targeting: Selecting one or more market segments to enter. Market positioning: Establishing and communicating the key distinctive benefit(s) of the company’s market offering to each target. Slide in Chapter 9 Using Market Segmentation Mass marketing is losing popularity Micromarketing can be undertaken at four levels: Segment marketing Niche marketing Local marketing Individual marketing Slide in Chapter 9 Using Market Segmentation Three patterns of preference segments are typically identified: Homogeneous preferences Diffused preferences Clustered preferences Slide in Chapter 9 Using Market Segmentation Needs-based segmentation Segment identification Segment attractiveness Segment profitability Segment positioning Segment “acid test” Marketing-mix strategy Needs-based Segmentation Process Slide in Chapter 9 Using Market Segmentation Useful market segments share certain characteristics: Measurable Substantial Accessible Differentiable Actionable Slide in Chapter 9 Segmenting Consumer Markets Bases for Segmentation Geographic Demographic Psychographic Behavioral Nation or country State or region City or metro size Density Climate Slide in Chapter 9 Segmenting Consumer Markets Bases for Segmentation Geographic Demographic Psychographic Behavioral Age, race, gender Income, education Family size Family life cycle Occupation Religion, nationality Generation Social class Slide in Chapter 9 Segmenting . | Chapter 9 Identifying Market Segments and Selecting Target Markets PowerPoint by Karen E. James Louisiana State University - Shreveport Slide in Chapter 9 Objectives Learn how companies identify the segments that make up a market. Understand the criteria companies use to choose the most attractive market segments. Slide in Chapter 9 Target Marketing Target marketing requires marketers to take three major steps: Market segmentation: Identifying and profiling distinct groups of buyers who differ in their needs and preferences. Market targeting: Selecting one or more market segments to enter. Market positioning: Establishing and communicating the key distinctive benefit(s) of the company’s market offering to each target. Slide in Chapter 9 Using Market Segmentation Mass marketing is losing popularity Micromarketing can be undertaken at four levels: Segment marketing Niche marketing Local marketing Individual marketing Slide in Chapter 9 Using Market Segmentation Three .