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Marketing Segments

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Summary of Key Points for Chapter 7

This chapter looks further into key customer-driven marketing strategy decisions—how to divide up markets into meaningful customer groups (segmentation), choose which customer groups to serve (targeting), create market offerings that best serve targeted customers (differentiation), and positioning the offerings in the minds of consumers (positioning).

Chapter Objectives:
1. Define the four major steps in designing a customer-driven marketing strategy: market segmentation, market targeting, differentiation, and positioning

2. List and discuss the major bases for segmenting consumer and business markets

3. Explain how companies identify attractive market segments and choose a market targeting strategy

4. Discuss how companies differentiate and position their products for maximum competitive advantage in the marketplace.

Most companies have moved away from mass marketing and toward target marketing—identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

Figure 7.1 (pg.216) shows the four major steps in designing a customer-driven marketing strategy.

Market segmentation involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.

Market targeting (or targeting) consists of evaluating each market segment’s attractiveness and selecting one or more market segments to enter.

Differentiation involves actually differentiating the firm’s market offering to create superior customer value.

Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

MARKET SEGMENTATION (pg. 216-225)

Segmenting Consumer Markets

Table…...

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