market segment
a group of customers who share a similar set of needs and wants
demographic segmentation
- age and life cycle
- life stage
- gender
- income
- generation
- social class
- race and culture
US Generation Cohorts
Millennials
Gen X
Baby Boomers
Silent Generation
millennial defining features
raised in affluence, tech savvy, perceived immunity from marketing
Gen X defining features
parents relied on day are, accepts diversity, pragmatic and individualistic
baby boomer defining features
control 3/4th of the wealth in the US, seek fountain of youth, home exercise equipment
silent generation defining features
lead vibrant lives, spend money and time on grandchildren
segmentation approaches
undifferentiated marketing
multiple segment
mass customization
niche targeting
undifferentiated market
- one size fits all
- entire market is target market
- rarely used (ex Henry Ford black paint)
multiple segments
- multiple products for multiple targets
- optimal market fit
- traditional approach
mass customization
- segments of one
- each customer has a unique need
- each need can be uniquely met
niche targeting
- one or few products designed to meet the very focused needs of a very focused segment
- typically able to demand a price premium
Choosing a target market acronym
STP
STP
segmentation
targeting
positioning
market segmentation
identify and profile distinct groups of buyers
market targeting
select one or more market segments to enter
market positioning
for each, establish and communicate benefits of offering
choosing target markets methods
- attitudinal segments
- Perceptual Mapping
- Vals
- Prizm
attitudinal segments example
- style seekers
- purely pragmatic
- buyers and keepers
- loyal to brand
- treat me right
- high maintenance
perceptual mapping
place points on 2 axis graph and look for groups
what does vals stand for?
values and lifestyles survey
How many demographic questions does VALS have?
4
How many attitudinal questions does VALS have?
35
VALS segments
innovators, thinkers, achievers, experimenters, believes, strivers, makers, survivors
