Chapter 3
          Strategic
           Market
        Segmentation
       Strategic market segmentation (1)
       Strategic market segmentation (1)
     * Levels and types of market 
       Levels and types of market 
       segmentation
       segmentation
                                                          3-3
                  Levels and types of market 
                  Levels and types of market 
                                   segmentation
                                    segmentation
                                         Vision
                 Strategic               Strategic intent
              Segmentation               Product benefits   Resource allocation
                                                            Alignment
                                   Managerial               Planning
                                  Segmentation
                                                                              Marketing programs
                                                      Operational              - Advertising
                                                    Segmentation               - Sales
                                                                               - Distribution
                                                                                                        3-4
      Best Buy segmentation strategy
      Best Buy segmentation strategy
     * Jill’s - “soccer moms”
       Jill’s - “soccer moms”
     * Barry’s - wealthy professionals
       Barry’s - wealthy professionals
     * Buzz’s - “tech enthusiasts”
       Buzz’s - “tech enthusiasts”
     * Ray’s - the family man
       Ray’s - the family man
     * Mr Storefront - the small business customer
       Mr Storefront - the small business customer
     * Carrie’s - young, single females
       Carrie’s - young, single females
     * Helen and Charlie’s - older couples whose 
       Helen and Charlie’s - older couples whose 
       children have left home
       children have left home
                                                          3-5
                      From Mass Markets to Micro Markets
                       From Mass Markets to Micro Markets
                                       OLD                         NEW
           CONSUMERS                   Passively receive           Empowered media users
                                       whatever TV                 control and shape content
                                       networks                    thanks to TiVo, iPod and
                                       broadcast                   Internet
           ASPIRATIONS                 To keep up with             To standout from the
                                       the crowd                   crowd
           TV CHOICE                   Three networks              Hundreds of channels
                                       plus maybe a                plus video on demand 
                                       PBS station
           MAGAZINES                   Age of the big              Age of the special interest
                                       glossies: Time,             magazine for every age
                                       Life, Newsweek              and affinity group
           ADS                         Everyone hums               Talking to a group of 
                                       the Alka-Seltzer            one, ads go ever
                                       jingle                      narrower
           BRANDS                      Rise of the big,            Niche brands, product
                                       ubiquitous brands           extensions and mass
                                       from Coca-Cola              customization mean many
                                       to Tide                     product variations
           Source: Anthony Bianco, “The Vanishing Mass Market”, Business Week, July 12 2004, 58-62                                       3-6