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Market Segmentation: Art or Science?
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THE IBC STRATEGY: PART III
Market Segmentation: Art or Science?
NIKEZeenat Jabbar
Market Segmentation: Art or Science?
Definition
• Market Segmentation:
– Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
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Market Segmentation: Art or Science?
Know Your Market
What information do you need to reach your prospects successfully?
Do you understand their problems? Have you thought about what you want
people to think and feel about your brand?
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Market Segmentation: Art or Science?
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Market Segmentation: Art or Science?
Developing a Market Segmentation Strategy
Define Product Market
Determine Bases for Segmentation
Describe Segments
Evaluate Potential Success
Select Target Markets
Determine Marketing Mix Strategies
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Market Segmentation: Art or Science?
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Market Segmentation: Art or Science?
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Market Segmentation: Art or Science?
Target Information
Household income Spending Marrieds Birthrate Aging Women
Men Single-Person
Households
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Market Segmentation: Art or Science?
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Market Segmentation: Art or Science?
• Segmenting Consumer Markets
• Geographical segmentation– Marketing mixes are
customized geographically• Demographic segmentation
– Most popular segmentation– Demographics are closely
related to needs, wants and usage rates
• Psychographic segmentation– Lifestyle, social class, and
personality-based segmentation
• Behavioral segmentation– Typically done first
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Market Segmentation: Art or Science?
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Market Segmentation: Art or Science?
• Requirements for Effective Segmentation
• Measurable– Size, purchasing power,
and profile of segment• Accessible
– Can be reached and served
• Substantial– Large and profitable
enough to serve• Differentiable
– Respond differently• Actionable
– Effective programs can be developed
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Market Segmentation: Art or Science?
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Market Segmentation: Art or Science? Bases for
Segmentation
Needs
ProfilersZeenat Jabbar
Market Segmentation: Art or Science?
Advertising & Promotion for BBA2K7 Zeenat Jabbar
Market Segmentation: Art or Science?
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Market Segmentation: Art or Science?
Elements of Lifestyle
ACTIVITIES INTERESTS OPINIONS DEMOGRAPHICSWork Family Themselves Age
Hobbies Home Social Issues EducationSocial Events Job Politics Income
Vacation Community Business OccupationEntertainment Recreation Economics Family Size
Club Membership Fashion Education DwellingCommunity Food Products GeographyShopping Media Future City Size
Sports Achievements Culture Stage in Life Cycle
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Market Segmentation: Art or Science?
Kellogg’s Special K
SEGMENT DEMOGRAPHICS BEHAVIOURISTICS PSYCHOGRAPHICS COMPANY'S BRANDS COMPETITORS'NEEDS/ BENEFITS BRANDS
Flavour Age: 20-30 yrs-old Medium-to-Heavy Users Fun seekers, adventurous, Original Special K, Kellogg's other brands,energetic, peer pressure Red Berry Special K Weetabix, Nestle, Alpen, etc.
group memberNutrition Value, Age: 31-44 yrs-old, Heavy Users Self-Confident, alert Original Special K, Kellogg's other brands,
Quality 45-54 yrs old Medium-to-Heavy Users to change, ambitious Special K Plus Fruitbix, Organic Crunch,Convenience Working men and Heavy Users Authoritarian, ambitious, Original Special K, Multi Flakes, Shredded Wheat.
w omen independent, health Special K Plus Kellogg's other brands,conscious Fruitbix, Organic Crunch,
Multi Flakes, Shredded Wheat.
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Market Segmentation: Art or Science?BENEFIT ACTIVITIES INTERESTS OPINIONS DEMOGRAPHICS
Functionality Student; Sports, Peer Pressure, Age: 20-30 yrs-old.You Can Use Adventurous, Entertainment, Education, FLC: Single;
Energetic Fashion Culture Light-to-Medium UsersValue and Self-made Home, Ambitious, Age: 26-50 yrs old.
Convenience Businessman; Community, Adventurous, FLC: Single, NewlyBetter-Off, Personal Planned Married, Full Nest I, II &
Independent Acievements, Purchasing, III,Recreation, Strong Views Medium-to-Heavy UsersBusiness about Products,
Politics, FutureBusiness andSocial Issues
Powerful and Successful Home, Job, Ambitious, Age: 27-43 yrs-old.Light Professional; Fashion, Energetic, FLC: Single, Newly
Better-Off, Community, Planned Married, Full Nest I, II &Independent Recreation, Purchasing, III,
Personal Strong Views Heavy UsersAcievements, about Products,Entertainment Politics, Future
Business andSocial Issues
Flexibility to Frequent Job, Fashion, Authoritarian, Age: 29-55 yrs-old.Perform Travellers; Home, Strong Views FLC: Single, Newly
Businessmen, Community, about Products, Married, Full Nest I, II &Executives, Recreation, Politics, Future III.Better-Off, Personal Business and
Independent Achievements, Social IssuesFood,
Entertainment
Laptops
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Market Segmentation: Art or Science?
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ASIAN PAINTS
Market Segmentation: Art or Science?
Target Generations
Good warriors (1909-1928)
Matures (1929-1945)
Baby boomers (1946-1964)
Gen Xers (1965-1982)
Gen Yers (1983-2001)
Generation Zers (2002+)
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Market Segmentation: Art or Science?
Planning the Advertising
Market segmentation is the division of an entire market of consumers into groups whose similarity makes them a market for products serving their special needs.
A situation analysis is the part of the advertising plan that answers the questions: Where are we today and how did we get here?
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Market Segmentation: Art or Science?
Steps in the Market Segmentation Process
Segment your market
Target a segment
Position your product
Communicate your positioning
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