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SEGMENTATION & TARGETINGStudents should have a keen understanding of consumer-rooted and consumption-specific segmentation and strategies for targeting the selected segments.This two-by-two matrix is important for understanding types of segmentation schemes.It ispossible to break segmentation into two broad groups – those that are based on the consumersthemselves and those that are based on the consumers’ interaction or potential interactionwith the product and are therefore consumption-based.Within each of these two larger typesof schemes, segmentation variables can be considered to be based on facts or what isabsolutely known and measurable about the consumer versus cognitions, which are abstractand can be determined only through more complex questioning.Consumer-rooted segmentationis based on the consumer's characteristics.Consumption-specific segmentationis based on the consumers' interaction or potential interaction with theproduct. The two can be classified intofacts (what is known and measurable) and cognitions(which are abstracts and can be determined only through more complex questioning).Strategies for targeting the selected segmentsMarket segmentation is the opposite of mass marketing and is part of the segmentation,targeting, and positioning framework. Segmentation is defined as the process of dividing apotential market into distinct subsets of consumers with a common need or characteristic andselecting one or more segments to target with a specially designed marketing mix. Besidesaiding in the development of new products, segmentation studies assist in the redesign andrepositioning of existing products, in the creation of promotional appeals, and in the selectionof advertising media. In order to be a viable target market, a segment must be identifiable bysome criteria such as demographics, lifestyles.It must be sizeable that is, large enough to beprofitable, stable or growing. I should also be accessible so it can be reached economically.And it should also be congruent with the marketer’s objectives and resources.Consumer-rooted behaviors and cognitions as well as consumption-specific facts andattitudes can be used to segment consumers. The most common categories used insegmentation are demographics and psychographics. However, in most cases, hybridsegmentations are used. Other consumer-rooted variables used to segment markets arepersonality traits and sociocultural values and beliefs. The key consumption-specificsegmentation factors are usage behavior, benefit segmentation, and brand loyalty andrelationship. Behavioral targeting and microtargeting are emerging techniques rooted inmarketers’ abilities to identify and target increasingly smaller segments and even individualbuyers with tailor-made messages which is narrowcasting. In conventional segmentation, acompany can choose to target several segments which is referred to as differentiatedmarketing or just one segment which is referred to as concentrated marketing.

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Term
Spring
Professor
Clive Williams
Tags
Marketing, eWOM

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