TOPICS:

*Market segmentation (4 Types)

*Profiling (3 Steps)
*Profiling models (3 Models)
*Targeting
*3 targeting strategies
MARKET SEGMENTATION

 Market
 - Refers to a group of consumer who share similar
needs and backed by power. A market can be
expressed this way.
 Market
 - Refers to a group of consumer who share similar
needs and backed by power. A market can be
expressed this way.
 Examples:
 Seasonal Products
 Seasonal products, such as coats and winter
gear and swimwear and beach attire, often are
marketed to geographic segments. Winter gear is
promoted for several months leading up to late
fall in the Midwest and northern regions of the
United States where harsh weather is common.
Beach attire is often targeted year-round in
California and much of Florida. In areas with
distinct winter, spring, fall and summer seasons,
swimwear normally is promoted for a few
months, including late spring and the summer
swimming season.
 Food Preferences
 Certain foods have very specific geographic
interest in the U.S. Grits, for instance, are
common in the South and Southeast regions.
Seafood, while enjoyed elsewhere, is marketed
more heavily along the east and west coasts,
where supply is fresh all year. McDonald's offers
seasonal seafood meals, including lobster and
crab, in select markets like New England. This is
an example of regional segmentation based on
geographic consumer preferences and product
availability. Small chains may find similar
opportunities to achieve supply and demand
advantages in select geographic markets.
 B. Demographic Segmentation
 - Is another way of dividing market people with
different personal characteristics have different
needs and interests. Personal characteristics
include age, gender, income, family size, and life
cycle.
 Examples
 Segment by Family

 Families come in all shapes and sizes –

single moms, single dads, gay couples with kids,
childless straight couples, straight couples with
one child or several kids. Family makeup can be
a useful tool in segmenting the market: families
that don't have babies don't need diapers, for
instance. Families with kids might buy lots of
children's movies on DVD. Large families might
be more interested in low-cost products than a
childless couple with the same income.
 Examples
 Segment by Family

 Families come in all shapes and sizes –

single moms, single dads, gay couples with kids,
childless straight couples, straight couples with
one child or several kids. Family makeup can be
a useful tool in segmenting the market: families
that don't have babies don't need diapers, for
instance. Families with kids might buy lots of
children's movies on DVD. Large families might
be more interested in low-cost products than a
childless couple with the same income.
 C. Psychographic Segmentation
 - Is another way of dividing a market. People who
belong in different psychographic segments spend
money differently.
 Examples
 You produce and distribute organic foods.
You segment your market into consumers who
purchase organic foods for the sake of the
environment, consumers who purchase organic
food for health reasons, and consumers who
purchase organic foods because it's the latest
thing. You direct your advertising of organic
foods to appeal to the unique values of each of
these segments.
 D. Behavioral Segmentation
 - Is another way of dividing a market. It enables
marketers to identify behavioral characteristics
that influence shopping patterns, usage,
frequency among others.
 Examples
 Buying on occasions

 As mentioned in the above example, buying

on occasions is the first form of behavioral
segmentation. Products such as chocolates and
premium foods will sell on festivals. Similarly,
confectioneries will sell when there is a party.
Thus these products are generally targeted by
behavioral segmentation.
 Profiling
 - Is the next step after market segmentation. It is
defined as describing the identified market
segments using relevant segmentation variables.
 Steps in Profiling
 1. Describe the Identified market segments using
relevant segmentation variables.
 2. Give a name for the different market
segments.
 3. Describe the market size of the market
segments.
 Profiling Models
 A. Roberto's Segment by Priority Consumer
Values
 His model suggest that consumer values do
not refer exclusively to products. There is no
consumer value that refer exclusively to
products. There is consumer value for products,
pricing, advertising, promotion, and for retail
outlet placements.
 B. 1SEC for Filipino Households (Socio-Economic
Classification of Filipino Households)
 This model includes nine socio-economic
cluster based on expenditure pattern of the
household taken from 2009 Family Income and
Expenditure Survey (FIES). These clusters
considered the following: quality of consumers,
number of selected energy-saving facilities
owned, urban and regional membership,
transport type ownership, water source type,
connectivity, living space assets, living shell, and
tenure of home.
 C. Myer's Brigg Type Indicator
 The Myers–Briggs Type Indicator (MBTI) is
an introspective self-report questionnaire with
the purpose of indicating differing psychological
preferences in how people perceive the world
around them and make decisions. The MBTI was
constructed by Katharine Cook Briggs and her
daughter Isabel Briggs Myers.
 D. Usage Status
 This model considers five usage status
segments: non-user segment, the lapsed user
segment, the potential user segment, the first-
time user segment, and the regular user
segment.
 Targeting
 - After segmenting and profiling the market you
choose which among the market segments you
will target. Select your target market segments
taking into consideration of your resources,
competition and consumers. This is important
because all marketing strategies are directed to
your target market segments.
 Targeting Strategies
 - There are 3 targeting strategies that can be
used depending on the target market, product
and business resources.
 Undifferentiated Marketing Strategy
 - Business considers the entire market as the
target market. The company does not go through
segmentation, profiling targeting. They adopt one
marketing strategy. Basically, in an
undifferentiated marketing strategy, marketers
use the same message for all segments of the
market. This is similar to mass marketing;
marketers typically create a message that
appeals to everyone, so the message is often
general or simple to allow more people to relate.
 Examples:
 Billboards
 Another example of mass marketing is a
billboard ad. Billboards reach large groups of
people. The only part of the ad that is targeted is
that the person must be in a vehicle and pass the
sign to view the ad. An example of a mass market
billboard ad would include an image of a model
enjoying a brand of bottled water, or any other
such product that has potential wide appeal
across many demographics. Such an ad would be
placed on billboards in major cities all over the
country to reach the most people possible.
 Radio
 Radio advertising is another means of
undifferentiated marketing. Ads that run in radio
slots can be heard by anyone who tunes into that
station. Although advertisers can try to create a
niche ad by buying air time on a station that
plays specific music, such as pop or country,
consumers may scan through different stations
as they seek something to listen to. Companies
wanting to reach the most people will advertise
on stations with the most overall listeners.
 Differentiated Marketing Strategy
 - Business consider the different segments in the
market. They do segmentation, profiling and
targeting. They develop products with separate
marketing mix strategies for each of the
segments that they choose to target. A
differentiated marketing strategy is when a
company creates campaigns that appeal to at
least two market segments or target groups.
 Concentrated Marketing Strategy
 - Business develops product for one segment of
the market. A concentrated marketing strategy
is targeted to one specific market segment or
audience. For example, a company might market
a product specifically for teenage girls, or a
retailer might market his business to residents in
a specific town. Concentrated marketing
strategies are often geared for smaller groups of
people, because they are designed to appeal to a
specific segment.
 Examples
 Using a concentrated marketing strategy,
the restaurant can market its convenient location
to a group of residents within 10 miles of the
business. Using an undifferentiated marketing
strategy, the restaurant can highlight its grand
opening celebration.
 An ad placed only in a magazine for mothers
of preschoolers that claims the product makes
mom’s life easier has a concentrated or niche
market.
 Positioning
 - After targeting, the next step to divide how you
will position your product in the minds of your
target as compared with the other products in the
market. It is defined as owning a distinctive
characteristics for your product category.
 Perceptual Mapping
 - Is a technique used to visually display the
mental image that the target market has on a
product relative to its competitors. This requires
that the two important attributes of the product
be identified. Perceptual mapping is a
diagrammatic technique used by asset marketers
that attempts to visually display the perceptions
of customers or potential customers.
 Perceptual maps can have any number of
dimensions but the most common is two
dimensions. The first perceptual map below
shows consumer perceptions of various
automobiles on the two dimensions of
sportiness/conservative and classy/affordable.
This sample of consumers felt Porsche was the
sportiest and classiest of the cars in the study
(top right corner). They felt Plymouth was most
practical and conservative (bottom left corner).
Perceptual map of competing products
 References

 https://trackmaven.com/marketing-dictionary/market-segmentation/
 https://smallbusiness.chron.com/examples-geographic-segmentation-
61612.html
 https://smallbusiness.chron.com/examples-demographic-
segmentation-12367.html
 https://study.com/academy/lesson/psychographic-segmentation-in-
marketing-definition-examples-quiz.html
 https://www.marketing91.com/behavioral-segmentation/
 https://en.m.wikipedia.org/wiki/Myers%E2%80%93Briggs_Type_Indic
ator
 https://smallbusiness.chron.com/example-undifferentiated-marketing-
30551.html
 https://smallbusiness.chron.com/difference-between-differentiated-
marketing-strategy-concentrated-marketing-strategy-30462.html
 https://en.m.wikipedia.org/wiki/Perceptual_mapping
 https://www.slideshare.net/RaniellaJimenez1/unit
2robertossegmentationprofilingtargetingandpositioning
The End
QUIZ:
 Identification
 1. It is a marketing strategy that segregates a
market with common needs and wants and then
disguising and implementing strategies to target
one or more or all of the smaller group of
markets.
 2. It is defined as the division of markets based
on the location of countries. It is generally
observed that people's needs vary depending on
where they live.
 3. It is defined as describing the identified
market segments using relevant segmentation
variables.
 4. It is a technique used to visually display the
mental image that the target market has on
product relative to its competitors.
 5. It is another way of dividing a market. It
enables marketers to identify behavioral
characteristics that influence shopping patterns,
usage and frequency.
 True or False
 6. In Demographic segmentation, the market is
divided based on location of countries.
 7. In Psychographic segmentation, people who
belong in different psychographic segments spend
money differently.
 8. In Concentrated Marketing Strategy, business
develops product for one segment of the market.
 9. Profiling is the next step after market
segmentation.
 10. Positioning is how you will position your
product in the minds of your target as compared
with the other products in the market.
Answer Key:
 1. Market Segmentation
 2. Geographic Segmentation

 3. Profiling

 4. Perceptual Mapping

 5. Behavioral Segmentation

 6. False

 7. True

 8. True

 9. True

 10. True