what’s happening? term project proposal due next class
TRANSCRIPT
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What’s Happening? Term Project Proposal due next class
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Market Segmentation and Positioning
Chapter 8
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Market Segmentation
Dividing the total heterogeneous market for a good or product into smaller groups which are more homogeneous.
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1.Break marke
t down
2.Group into
segments
TARGET MARKET
3.Choos
etarget marke
t
Steps in Segmentation & Targeting
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Not all buyers are alike Subgroups may be identified Subgroups smaller and more
homogeneous Easier to satisfy smaller groups www.fordvehicles.com
Segmentation works because,….
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Effective Segmentation
To be useful, market segments must be: – Measurable: size, purchasing power, and profile– Accessible: can be reached and served/responsive– Substantial: large enough to profitably serve– Differentiable: respond differently to a marketing mix– Actionable: effective programs can be designed
Segments should be evaluated for:– Size– Growth characteristics– Structural attractiveness– Compatibility with company objectives and resources
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Discussion Questions
Put yourselves into small groups and answer the following assigned questions on page 218:
Question 2 and all parts of 4
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Market Segmentation Variables
Geographic: dividing a market into different geographical units, such as nations, states, regions, counties, cities, or neighbourhoods
Demographic: dividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, religion, race, and nationality
Socioeconomic: identifying differences in income, education, occupation and social class
Psychographic: dividing a market into different groups based on activities, interests, lifestyle, opinions, values or personality characteristics
Behavioural: dividing a market into groups based on consumer loyalty (to brand or store), usage, benefits sought/ expected, response to a product and price
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Identifying Market Differences
Best to use multiple approaches in order to identify smaller, better-defined target groups.
Start with a single base and then expand to other bases.
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Four strategies for target marketing
1. Undifferentiated Marketing: When everyone is a customer. Firm decides to ignore market
segment differences and go after the whole market with one offer.
2. Concentrated Marketing: Zeroing in on a single target. A firm goes after a large share of
one market.3. Differentiated Marketing:
Different Buyers, Different Strategies. A firm decides to target several market segments and designs separate offers for each. http://www.tide.com/en_CA/index.jsp
4. Custom/Individual Marketing: Tailoring marketing offers to the needs and preferences of
individual customers
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Choosing a Market Coverage Strategy
Depends on: Company resources Degree of product variability Product life cycle stage Market viability Competitors’ marketing strategies
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Market Positioning
Market positioning:– Arranging for a product to
occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Product position: the way the product is defined by consumers on important attributes, relative to competing products
– The “quicker-picker-upper?”
– The “uncola?”– “Great taste, less filling?”
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Positioning Map
Positioning map for large luxury SUVs.
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POSITIONING MAPS FOR TEA(Exhibit 8-12, PAGE 215)