Chapter 8 Segmentation Targeting and Positioning o Undifferentiated segmentation strategy product or service is perceived to provide the same benefits to everyone there simply is no need to develop separate strategies for different groups o Differentiated segmentation strategy several market segments with a different offering for each o Concentrated segmentation strategy when an organization selects a single primary target market and focuses all its energies on providing a product to fit that market s needs o Micromarketing one to one marketing when a firm tailors a product or service to suit o Mass customization firms that interact on a one to one basis with many people to an individual customer s wants or needs create custom made products or services o Geographic segmentation organizes customers into groups on the basis of where they live themselves o Demographic segmentation groups consumers according to easily measure objective characteristics such as age gender income and education o Psychographics breaks down the market into how consumers actually describe o Self values goals for life not just the goals one wants to accomplish in a day o Self concept image people ideally have of themselves o Lifestyles way we live o VALs most widely used psychographic tool owned and operated by SRI Consult Business Intelligence Classified in eight segments based on resources and psychological motivation o Benefit segmentation groups consumers on the basis of the benefits they derive from o Geodemographic segmentation combo of geographic demographic and lifestyle products or services characteristics to classify consumers o Loyalty segmentation customers who feel strongly that the firm can meet their relevant needs best that other competitors are virtually excluded from their consideration o Perceptual map in two or more dimensions the position of products or brands in the consumer s mind o Ideal points where particular market segments ideal product would lie on the map
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