◦ Mass marketing◦ Segment marketing◦ Niche marketing◦ Individualized marketing

2

LO 2

Rarely seen today◦ Competitiveness of the market◦ Need to specifically address consumer needs

3

LO 2

◦ Most common form of segmentation followed by large companies

◦ Meeting the needs of target groups (chosen segments) with specific products and marketing programs

4

LO 2

◦ Concentrate on a smaller area to be successful◦ Kashi targets ‘health enthusiasts’

5

LO 2

◦ Through the use of sophisticated tracking and statistical models, behaviour is predicted

◦ Individual offers are developed◦ Product selection and products can be customized

6

LO 2

7

LO 3

◦ Review strategic company objectives Clear Quantifiable

8

LO 3

Identify specific business unit objectives.

9

LO 3

Identify consumer/customer needs and common characteristics in the market.

10

Common InterestsCommon Interests

Evolving TrendsEvolving Trends

Market ShiftsMarket Shifts

Consideration of Other CountriesConsideration of Other Countries

Consumer PerspectiveConsumer

Perspective

LO 3

Cluster common consumer/customer variables to create meaningful market segments.◦ Clusters = Segments in the market◦ Very important: Review clusters from a consumer

perspective Cereal: High fibre vs. health conscious

11

LO 3

12

LO 3

Conduct SWOT analyses on the segments to determine strengths, weaknesses, opportunities, and threats.

13

Opportunities and the ability of the

company to compete

Opportunities and the ability of the

company to compete

LO 3

Identify the segment that best meets strategic company objectives.◦ Opportunities and threats relative to company

objectives◦ Uncovers opportunity segments

14

LO 3

Identify marketing programs and budget requirements needed for this segment.◦ Recommended marketing program◦ Full financial evaluation

15

LO 3

Create a sales forecast for this segment.◦ Estimated sales potential

16

LO 3

Conduct a profit-and-loss financial analysis for this segment.◦ Determination of the financial viability◦ Ability to make a rational decision

17

LO 3

Check financial forecasts against specific business unit objectives.

18

LO 3

Created by considering:◦ Geographics◦ Demographics◦ Psychographics◦ Behaviouristics

19

LO 4

20

LO 4

Figure 6-3

Segmentation variables and breakdowns for Canadian consumer markets

◦ Product image◦ Target audience’s mind◦ Relative to competition

◦ Positioning statements include: Product name Category in which product competes Why target buys the product What sets product apart

“simple, clear and focused”

21

LO 5

22

LO 5

◦ Also known as Perceptual Maps◦ Two most important attributes of your product that

drive target group purchases in the category◦ Maps result in a visualization of opportunities and

threats

23

In Practice:Positioning drives the coordination of the

marketing mix to meet targets’ expectations

In Practice:Positioning drives the coordination of the

marketing mix to meet targets’ expectations

LO 5