rogers mark5311 4 segmentation
TRANSCRIPT
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MARKET SEGMENTATION
Agenda
Barco Presentation and discussionBIO-BREAK
What is market segmentation?Segmentation Strategy AlternativesBIO-BREAKBasis for segmentationMarket Segment evaluation
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MARKET SEGMENTATION
Buyer Preference Patterns descriptive, not normative
homogeneous preference
diffused preference
clustered preference
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creaminess
sweetness
Diffused Preference-no pattern (or poor research) -take center position
MARKET SEGMENTATION
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creaminess
sweetness
Clustered Preference-natural segments-increases as number of competitors increases
MARKET SEGMENTATION
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MARKET SEGMENTATION
Market Coverage Strategies
Undifferentiated (unsegmented) marketing strategymarket aggregation
one strategy for entire marketopposite of segmentation
Examples of firms who could benefit from this strategy?
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MARKET SEGMENTATION
Market Coverage Strategies
Differentiated (segmented) marketing
different marketing strategies for multiple segmentsincreased penetration into each segmenthigher sales and higher costs
Examples of firms who could benefit from this strategy?
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MARKET SEGMENTATION
Market Coverage Strategies
Concentrated (niche)marketing strategytarget a small marketgo after a large sharesmall firm survival strategy
Examples of firms who could benefit from this strategy?
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MARKET SEGMENTATION
Surrogate (or segmentation) Variables
Why surrogate variables?
Customer CharacteristicsState of Being
Demographic variables
Geographic
State of mindPsychographicsPerceptions, Preferences
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MARKET SEGMENTATION
Using Preference to Segment the Market
Preference Mapping Brands
Can multiple maps be present?
Do they meet the criteria for segmentation?
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MARKET SEGMENTATION
Surrogate (or segmentation) Variables
Customer Response
Product UsageVolumeLoyaltyMarket Factors
Benefit Received
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MARKET SEGMENTATION
1. Determine Demand Patterns2. Establish Possible Bases of
Segmentation3. Identify Potential Market Segments
4. Choose a Target Market Approach5. Select the Target Market(s)6. Position the Firms Offering in
Relation to the Competition
7. Develop the Appropriate MarketingMix(es)
AnalyzeConsumerDemand
Target theMarket
Developthe
MarketingStrategy
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MARKET SEGMENTATION
Evaluation of Segmenting Variable
MeasureableStable
over timeProduce behavioral differences
among the groups
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MARKET SEGMENTATION
Evaluation of Market Segments
SizeableHow Many?How Much Money?Propensity to Buy?
Reachableby your marketing strategy
Demonstrate Behavior Differencesamong the groups
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MARKET SEGMENTATION
1 to 1 (Customized) Marketing
Logical end of segmentationFocus
Relationship with buyer rather than on product developmentCustomer Satisfaction
CustomizationSee Amazon for example
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MARKET SEGMENTATION
Wrap-up
We have discussed market segmentationKey Takeaways
Focus on behaviorBe able to judge if you have a good segmentation variableBe able to choose a market segment
Next Time
The Kodak Case Market Segmentation
Behavioral Inputs into Marketing ManagementPlease Read Chapters 4 and 5