oSegmentation provides information to design marketing mixes to match the characteristics of the segment.oSegmentation helps marketers satisfy customer wants and needs while meeting the organization’s objectives. Bases for SegmentationGeographyDemographyPsychographicsBenefits soughtUsage rateSegmentation Variables for Business MarketsCompany characteristicsGeographic location
Type of companyCompany sizeProduct usePurchasing strategies of buyersInfluenced by the personal characteristics of buyersThe business market consists of four segments: producers, resellers, government, and institutions.Segmenting by customer type allows business marketers to tailor their marketing mixes to the unique needs of particular types of organizations or industries. Volume of purchase (heavy, moderate, light) is a commonly used basis for business segmentation.The ways in which customers use a product may influence the amount they buy, their buying criteria, and their selection of vendors.Steps in Segmenting a Market Selecting a market or product category for study Choosing a basis or bases for segmentationSelecting segmentation descriptorsProfiling and analyzing segmentsSelecting marketsDesigning, implementing, and maintaining appropriate marketing mixesTarget Marketing Strategies•Undifferentiated targeting strategy,Views the market as one big market with no individual segments and thus uses a single marketing mix•Essentially a mass-market philosophy—viewing the market as one big market and using one marketing mix•The first firm in an industry sometimes uses this strategy.•With no competition, the firm may not need to tailor marketing mixes to the preferences of market segments.•Too often, it emerges by default rather than by design, reflecting a failure to consider the advantages of a segmented approach. •The result is often sterile, unimaginative product offerings that have little appeal to anyone.•Concentrated targeting strategy, Selects one segment of a market for targeting marketing efforts•A firm selects a nichefor targeting its marketing efforts. •Because the firm is appealing to a single segment, it can concentrate on understanding the needs, motives, and satisfactions of that segment’s members and on developing and maintaining a highly specialized marketing mix.•Multisegment Targeting Strategy, Chooses two or more well-defined market segments and develops a distinct marketing mix for each•A firm that chooses to serve two or more well-defined market segments and develops a distinct marketing mix for each•Example - P&G offers 18 different laundry detergents, each targeting a different segment of the market.
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- Spring '14