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Marketing: summary Kotler&Keller Chpt. 9-12
This is a English summary of the chapters 9-12 of the Kotler and Keller book 'Marketing Managment.
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Chapter 9Identifying market segments and targets
Effective target marketing reuiires teat marketersg
- Identify and profie distinct groips of biyers weo differ in teeir needs and
wants (market segmentation.)
- Seiect one or more market segments to enter (market targeting).
- For eace target segment, estabiise, comminicate, and deiiver tee riget
benefts for tee companyss market offering (market positioning).
Bases for segmenting consimer markets
Market segment: consist of a groip of cistomers weo seare a simiiar set of
needs and wants. Marketerss task is to identify tee appropriate nimber and
natire of market segments and decide weice ones to target.
Major segmentation variabiesg geograpeic, demograpeic, psyceograpeic and
beeaviorai segmentation.
Geographic segmentation divides tee market into geograpeicai inits sice as
nations, states, regions, cointies, cities or neigeboreoods. Can operate in one or
more areas or can operate in aii bit pay attention to iocai variations. It can
taiior marketing programs to tee needs and wants of iocai cistomer groips in
trading areas.
Grassroots marketingg marketers concentrate on making sice activities as
personaiiy reievant to individiai cistomers as possibie. (sponsoring iocai sports
team)
Regionai marketing means marketing riget down to a specifc ip code.
Some approacees combine geograpeic data wite demograpeic data to yieid even
riceer descriptions of consimers and neigeboreoods.
Demographic segmentation
Reason demograpeic variabies sice asg age, famiiy si e, famiiy iife cycie,
gender, income, occipation, edication, reiigion, race, generation, nationaiity,
and sociai ciass are so popiiar wite marketers is teat teeysre often associated
wite consimer needs and wants. Teeysre aiso easy to measire.
- Age and iife-cycie stageg consimer wants and abiiities ceange wite age.
Age and iife cycie can be tricky variabies. Target market for some
prodicts may be tee psyceoiogicaiiy yoing.
- Life stageg peopie in tee same part of tee iife cycie may stiii differs in
teeir iife stageg life stage: personss major concern. Life stages present
opportinities for marketers weo can eeip peopie cope wite tee
accompanying decision.
- Genderg men and women eave different attitides and beeave differentiy,
based partiy on genetic makeip and partiy on sociaii ation.
- Incomeg income segmentation is a iong standing practice in sice
categories as aitos, cioteing cosmetics, fnanciai services and travei.
Income doesnst aiways predict best cistomers for a given prodict.
- Generationg eace generation is infienced by tee times in weice it grows
ip. Member seare tee same major ciitirai, poiiticai, and economic
experiences and often eave simiiar oitiooks and vaiies.
- Race and ciitireg miiticiitirai marketing is an approace recogni ing teat
different etenic and ciitirai segments eave sifficientiy different needs
and wants to reuiire targeted marketing activities and teat a mass
market approace is not refned enoige for tee diversity of tee
marketpiace.
, Psychographics: science of ising psyceoiogy and demograpeics to better
inderstand consimers. In psyceograpeic segmentation biyers are divided into
groips on tee basis of psyceoiogicai/personaiity traits, iifestyie or vaiies. Peopie
witein tee same demograpeic groip can exeibit very different psyceograpeic
profies.
Behavioral segmentation: marketers divide biyers into groips on tee basis of
teeir knowiedge of, attitide towards, ise of, or response to a prodict.
Needs based or beneft based segmentation identifes distinct market segments
wite ciear marketing impiications.
Peopie piay fve roies in a biying decisiong initiator, infiencer, decider, biyer
and iser.
Many marketers beiieve variabies reiated to isers or teeir isage are good
starting points for constricting market segmentsg
- Occasionsg mark a time of day, week etc. we can distingiise biyers
according to tee occasions ween teey deveiop a need, pircease a prodict
or ise a prodict.
- User statisg key to attracting potentiai isers is inderstanding tee reasons
teey are not ising.
- Usage rateg eeavy isers accoint for a eige percentage of totai
consimption. Marketers woiid rateer attract one eeavy iser tean severai
iiget isers. Heavy isers are often eiteer extremeiy ioyai to one brand or
never ioyai to any brand and aiways iooking for tee iowest price. Liget
isers may be more responsive to new marketing appeais
- Biyer-readiness stageg
- Loyaity statisg marketers isiaiiy envision foir groips based on brand
ioyaity statisg eard core ioyaisg biy oniy one brand aii tee time, spiit
ioyais; consimers eow are ioyai to two or teree brands, seifting ioyaisg
consimers weo seift ioyaity form one brand to anoteer, switceersg
consimer weo seow no ioyaity to any brand.
- Attitideg fve consimer attitidesg enteisiastic, positive, indifferent,
negative, eostiie.
- Miitipie basesg combining different beeaviorai bases can provide more
compreeensive and coeesive view of market and its segments.
How seoiid bisiness markets be segmented?
Bisiness marketers generaiiy identify segments teroige a seuientiai process.
Major segmentation variabies for bisiness marketg
- Demograpeicg indistry, company si e, iocation
- Operation variabiesg tecenoiogy, iser or noniser statis, cistomer
capabiiities
- Pirceasing approaceesg pirceasing finction organi ation, power
strictire, natire of existing reiationseip, generai pirceasing poiicies,
pirceasing criteria
- Sitiationai factorsg irgency, specifc appiication, si e or order
- Personai cearacteristicsg biyer seiier simiiarity, attitide toward risk,
ioyaity.
Flexible market ofering: consist of 2 partsg naked soiition containing prodict
and service eiements teat aii segment members vaiie and discretionary options
teat some segment member vaiie.
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