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Marketing Chapter 8 Market Segmentation Gilbert A. Churchill, Jr. Irwin/McGraw-Hill J. Paul Peter © The McGraw-Hill Companies, Inc., 1998 Slide 8-1 Table 8.1 Approaches to Serving Markets Approach Mass Marketing Segment marketing Individual marketing Irwin/McGraw-Hill Description Examples A single marketing mix for the entire market A single marketing mix for one segment of the market Phone service, WEB pages Separate marketing mixes for two or more segments of the market McDonald’s (Happy Meals for young children, Big Macs for Teens, Arch Deluxe for adults); Toshiba copiers (several sizes and features to meet different levels of business needs) A marketing mix customized for an individual or organization Personalized amenities for repeat guests at Ritz-Carlton hotels; management consulting services tailored to an organization’s needs Women's Workout World (exercise facilities for women); American Association for Retired Persons (lobbying and membership services for people over 50) © The McGraw-Hill Companies, Inc., 1998 Slide 8-2 Mass Marketing The Market Product Price Everyone Placement Promotion Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Slide 8-3 Niche Marketing The Market Product Price Placement Promotion Irwin/McGraw-Hill Market Segment © The McGraw-Hill Companies, Inc., 1998 Slide 8-4 Differentiated Marketing The Market Product Price Placement Promotion Product Price Market Segment Market Segment Placement Promotion Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Slide 8-5 Individual Marketing The Market Product Price Placement Promotion Customer Product Price Placement Promotion Customer Product Price Placement Promotion Customer Product Price Placement Promotion Irwin/McGraw-Hill Customer © The McGraw-Hill Companies, Inc., 1998 Slide 8-6 Table 8.2 Some Bases for Segmenting Consumer Markets Levis Dockers Demographic Campbell Soup Geographic Behavior Segmentation Benefit Colgate Toothpaste Irwin/McGraw-Hill Southwest Airlines Psychological Frito-Lay Snacks © The McGraw-Hill Companies, Inc., 1998 Slide 8-7 Figure 8.2 VALS2 Lifestyle Categories Consumer Markets Resources Abundant Actualizers Fulfilleds Achievers Experiencers Believers Strivers Makers Strugglers Minimal Principal Oriented Irwin/McGraw-Hill Status Oriented Action Oriented Self-Orientation © The McGraw-Hill Companies, Inc., 1998 Slide 8-8 Table 8.3 Some Bases for Segmenting Organizational Markets Intel Computer Chips Geographic Segmentation Apple Computer Newton Pocket Computer Irwin/McGraw-Hill Organizational Buyer Behavior Customer Type Flowers Industries Baked Goods © The McGraw-Hill Companies, Inc., 1998 Slide 8-9 Figure 8.5 The Process of Market Segmentation Analyze Customer Product Relationship Investigate Segmentation Bases Develop Product Positioning Select Segmentation Strategy Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Slide 8-10 Figure 8.6 Sample Positioning Map: Automobiles Luxurious •Lexus •Mercedes Cadillac• •Chrysler Oldsmobile• •Buick Traditional Mercury• •Porsche •BMW Lincoln• Ford• •Pontiac Sporty •Chevrolet •Nissan Dodge• Plymouth• •Toyota •VW •Saturn Functional Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998
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