BUS-M 300 Lecture 6Outline of Last Lecture I. Review SlideII. What is marketing segmentation?III. Five Steps to Target Marketing and SegmentationOutline of Current Lecture IV. Five Steps to Target Marketing and SegmentationCurrent LectureoWhat is marketing segmentation?oStep 5: Reaching Target MarketsUndifferentiated Marketing or Mass Marketing - firms that produce only one product or product line and market it in the same manner to all consumers. What are the benefits of this approach? What are its shortcomings?-Advertised to everyone that is out there-Usually for commodity items-BenefitsoEveryone is the customeroA market segment of oneoInexpensive for marketers-ShortcomingsoLots of wasteDifferentiated Marketing - a strategy where numerous products are offered to different segments through differential use of the 4Ps. Examine the product offerings of Levis, Coca- Cola, Fidelity Investments, and Bank One to see how many different products they offer to appeal to different segments.-For more complex productsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-Many companies offer multiple product lines and must market them to people in different waysConcentrated or Niche marketing - a strategy most often used by small firms that directs the firm's efforts toward serving a very small segment.-This is a risky strategy becauseoCompany has a very small market to leverage its salesoThe company is subject to trends in the marketplace and may not be able to respond to new trends quick enoughCustomized marketing - an extreme version of differentiated marketing where the company strives to meet the needs of very small segments by customizing their products or marketing to fit the customers’ needs. -Also called one-to-one marketing, customized marketing has arisen due to the availability of more detailed data on customers. Typically, only large firms are able to employ customized marketing.-Costs a lot of money-Customizing products to meet a certain segmentPositioning - the place the product occupies in consumers' minds relative to competing products.-It’s a perception that may or may not be based on reality. Positioning is designed to achieve a competitive advantage for the product for that segment.A perception map can help a company identify where their product is in relationship to other products.-May uncover voids in the market.-If a company feels its product is being crowded in consumer mindsit can reposition the product by identifying new ways consumer can associate with the