【市场营销英文版】08Market Segmentation and Targeting1

MarketSegmentationandTargetingMarketSegmentationMarketscanbehugeanddiverseentitiesmadeupofindividuals.Sinceindividualwantsandneedstendtodiffer,tryingtomassmarkettoawholemarketoftenisinefficient.Costingtoomuchtimeandmoney,andhurtingprofitpotential.Therefore,acompanyshouldfocusortargetspecificgroupsorsegmentsofindividualstoenhanceprofitopportunities.MarketSegmentationSomewillarguethatmassmarketingisbetter,becauseloweroverallproductioncostsareachieved.Lowerexpensesthenleadstohigherprofits.However,unlessalmosteveryoneisbuyingyourproduct/service,thelowerexpenseswillnotnecessarymeanhigherprofits.MarketSegmentationAsamarketer,definingandidentifyinggroupsofindividualswhowillpayforyourproductorserviceisanimportanttask.Thinkofthistaskastryingtotakeadvantageofthecostsavingsofmassmarketing,butonasmallerscale.Or,conductingmassmarketingtogroupsinsteadofthemarketasawhole.MarketSegmentationDefinition:Amarketsegmentsaregroupsofhigh-potentialprospectivecustomerswithcommoncharacteristicsandneedsthatdistinguishthemfromotherhigh-potentialmarketsegments.MarketSegmentationTypesofSegmentation:•Segment(general):focusesoncustomerswhoshareasimilarsetofwants.•Niche:focusesoncustomerswhoseekadistinctsetofbenefits(oftencalledsub-segmentation).•Local:focusesonthewantsofcustomersinaspecificlocation.•Customerization:focusesoncustomizingtheproductorservicetofitthecustomer’sspecificwants(theultimateinsegmentation).MarketSegmentationBasesforSegmentingCustomerMarkets:•Geographic•Demographic•Psychographic•BehavioralMarketSegmentationGeographicSegmentation:Thisbasisforsegmentationcallsfordividingthemarketintodifferentgeographicunits(i.e.provinces,counties,cities,towns,neighborhoods,etc.).MarketSegmentationDemographicSegmentation:Thisbasisofsegmentationcallsfordividingthemarketsintogroupsbasedonageand/orothervariables.Demographicsegmentationispopular,becausethevariablesareeasiertomeasre.MarketSegmentationSomeofthevariablesconsideredinDemographicSegmentation:•Ageandlife-cyclestage•Lifestage•Gender•Income•Socialclass•Generation•EthnicityMarketSegmentationPsychographicSegmentation:Thisbasisofsegmentationgroupspotentialcustomersaccordingtopsychological/personalitytraits,lifestyles,orvalues.MarketSegmentationBehavioralSegmentation:Thisbasisofsegmentationdividescustomersintogroupsaccordingtotheirknowledgeof,attitudetoward,useof,orresponsetoaproductorservice.MarketSegmentationVariablesconsideredinBehavioralSegmentation:•Occasions(need/use)•Benefits•UserStatus•UsageRate•Buyer-readinessstage•Loyaltystatus•AttitudeMarketSegmentationIntheend,therearemanydifferentwaystosegmentamarket.Howyousegmentthemarketisyourdecision!Alwayskeepyourproductorserviceinmindwhenyousegment,orelseyoursegmentationactivitieswillbeawasteoftimeandmoney.MarketTargetingAfteryouhaveidentifiedthepossiblemarketsegmentsandopportunities,whichsegmentsandhowmanysegmentstotargetorfocusonisyournextstep.MarketTargetingEffectiveSegmentationCriteria:Tobeusefulinyourmarketingefforts,marketsegmentsmustratefavorablyonfivekeycriteria.Thesegmentsmustbe:•Measurable•Substantial•Accessible•Differentiable•ActionableMarketTargetingWhenevaluatingdifferentmarketsegments,twofactorsmustbeconsidered:•Thesegment’soverallattractiveness•Thecompany’sobjectivesandresourcesMarketTargetingTypesofTargetingDecisions:•Single-segmentconcentration•Selectivespecialization•Productspecialization•Marketspecialization•FullmarketcoverageMarketTargetingSingle-segmentconcentrationtargeting:Thischoiceinvolvesconcentratedmarketing.Thecompanygainsathoroughunderstandingofthechosensegment’sneedsandachievesastrongmarketpresence(i.e.mostluxurygoods).MarketTargetingSelectivespecializationtargeting:Anumberofsegmentsareselected,eachobjectivelyattractiveandappropriate.Littleornosynergymayexistamongthesegments,buteachsegmentpromisestomakemoneyforthecompany(i.e.carmanufacturers).MarketTargetingProductspecializationtargeting:Underthisarrangement,thecompanyspecializesinmakingacertainproductforseveralsegments.Theproductmightbefurtherspecializedforeachsegment(i.e.TexasInstrumentcalculators).Theriskistechnologicalchangemightendtheneedfortheproduct.MarketTargetingMarketspecializationtargeting:Focusisonservingtheneedsofaparticularcustomergroup(i.e.defensecontractors).Therisksarebudgetcutsandgroupshrinkage.MarketTargetingFullmarketcoveragetargeting:Aattemptismadetoserveallcustomergroupswithalltheproductstheymightneed.Onlyafewlargecompaniescanemploythistargetingmethodeffectively,butsometimeeventheyfail.MarketTargetingFullmarketcoveragetargeting:UndifferentiatedversusdifferentiatedmarketingUndifferentiated:ignoressegmentdifferencesandoffersonlyoneproductDifferentiated:operatesinseveralsegmentandoffersdifferentproductsforeachSalestendtobehigherfordifferentiatedmarketing,butsoarecosts.MarketTargetingAdditionalconsiderations:Segment-by-segmentinvasions:enteringonesegmentatatimeandavoidinglettingrivalsknowwhichsegmentisnext,goodplanningrequired.Updatingsegmentationarrangements:segmentationanalysisneedstobeonaregularbasis.Ethicalchoiceoftargetmarkets:sometim