kotler_mm13e_im_08 - CHAPTER RKET SEGMENTS AND TARGETS 8...

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ARKET SEGMENTS AND TARGETS 8 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know what are the different levels of market segmentation Know how a company can divide a market into segments Know how a company should choose the most attractive target markets Know what are the requirements for effective segmentation CHAPTER SUMMARY Article I. Target marketing includes three activities: market segmentation, market targeting, and market positioning. Article II. We can target markets at four levels: segments, niches, local areas, and individuals. Market segments are large, identifiable groups within a market. A niche is a more narrowly defined group. Globalization and the Internet have made niche marketing more feasible to many. Marketers appeal to local markets through grassroots marketing for trading areas, neighborhoods, and even individual stores. Article III. More companies now practice individual and mass customization. The future is likely to see more self-marketing, a form of marketing in which individual consumers take the initiative in designing products and brands. Article IV. There are two bases for segmenting consumer markets: consumer characteristics and consumer responses. The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. Marketers use them singly or in combination. Article V. Business marketers use all these variables along with operating variables, purchasing approaches, and situational factors. To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable. A firm has to evaluate the various segments and decide how many and which ones to target: a single segment, several segments, a specific product, a specific market, or the full market. If it serves the full market, it must choose between differentiated and undifferentiated marketing. Firms must also monitor segment relationships, and seek economies of scope and the potential for marketing to super segments. Marketers must develop segment-by-segment invasion plans and choose target markets in a socially responsible manner at all times. 1
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Chapter-by-Chapter Instructional Material DETAILED CHAPTER OUTLINE Companies cannot connect with all customers in large, broad, or diverse markets. But they can divide such markets into groups of consumers or segments with distinct needs and wants. A company then needs to identify which market segments it can serve effectively. This decision requires a keen understanding of consumer behavior and careful strategic thinking. To develop the best marketing plans, managers need to understand what makes each segment unique and different. To compete more effectively, many companies are now embracing target marketing.
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kotler_mm13e_im_08 - CHAPTER RKET SEGMENTS AND TARGETS 8...

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