MKT 300 1st EditionExam # 2 Study Guide Lectures: 9 - 12Lecture 9 (February 10)Why do we segment?Market fragmentation: so many diverse people groups; different needs for products/servicesSteps in the processTargetingStep 1: Establish overall strategy or objectives*Must be consistent with and derived from the firm’s mission and objectives, as well as currentsituation—strengths, weaknesses, opportunities and threatsStep 2: Segmentation methods1. Geographic: international, localizationHawaii with Spam (fourteen different varieties: convenient, versatile, humor)2. Demographic: age, income, gendera. Vine Stars market with Coca Cola products—“Native Advertising” to millennialsb. Campbell’s increased marketing with social media to appeal to younger consumer—“Go” productc. Kraft’s Mac and Cheese: targeting to parents and grandparents; commercial “What I Did for Love”d. Just gender—Men’s Trunk Club: do your shopping for you, consultation on Skypee. Often combine age AND gender: Axe, Old Spice (males ages 18-24)f. J. Cutler in Mr. Mom video, keeping the kids with wife Kristin Cavallarig. Women ages 18-54: Think Thin energy bar—commercial where moms check out a son’s friend at brunch 3. Psychographic: lifestyle, self-concept, self-values (aka attitudes and opinions)a. Campbell’s “What does your fridge say about you?”i. Studied consumers, went shopping together, interviewedii. Came up with six types of cooks: 1. Passionate Kitchen Master 2. Familiar taste pleaser 3. Uninvolved quick fixer ETC.iii. Helped them research what these people types use in their meal preparing (target marketing) b. Pop Tarts: targeting adults and teenagers; households with kids ages 6-17 are biggest buyersc. Nestle Resource Water targets the “trendy woman, 35 years old, making a higher income”d. Recipe boxes target women who want to cook, but don’t want to stand in line at the storee. Subaru targets the experience seekerf. Fantasy Football’s Obsessive Trend: 27 million Americans; 80% college grads, 20% women4. Benefits: consumer seeks something in particular that only a product with benefits will suffice*Convenience, economy, prestige*a. Gyms who offer movie watching/tanning/personal trainingb. Gluten-free/calorie-freec. Savory Energy bars: flavors include pizza, barbecue and friesd. Veggie Meat: beyond meat for NY Mets5. Behavioral: trends in consumer behavior*Occasion, loyalty*a. Eating cereal at night for dinner or a snack, standing up to eat itb. Febreeze for your car, garbage can, sheetsc. Yogurt for dessert instead of breakfastd. Z-quil versus Nyquile. Dunkin Donuts offering lunch sandwiches instead of serving only breakfast foodf. Proctor and Gamble’s clothing refresher, Swash—higher income, nice wardrobeStep 3: Evaluate Segment Attractiveness- Identifiable: this segment is unique compared to everyone else- Substantial: able to last, size/depth- Reachable: communication strategy that works with them, product distributiono Consumer must know the product/service exists, understand what it can do for them, and recognize how to buy it- Responsive: positive response- Profitable: able to make moneyStep 4: Selecting a Target Market—and choosing a strategy- Differentiated—targeting several market segments with a different offering for each*Classic target (different 4 P’s for each market)*o Ralph Lauren/Vera Wang/L’Oreal/Marriott—all carry different products in different places I.e.: Ralph Lauren in Belk, on runway Vera Wang: clothing, dresses, runway L’Oreal in drugstore, department store, salon - Concentrated—targeting a single, primary market and focusing all its energies on providing a product to fit that market’s needs*Finding a nitch: small, specialized, entrepreneurso Healthy Pet, Luvo (organic frozen foods), Artisan Bistro, Plum organics- Micromarketing or one-to-one: a firm tailors a product/service to suit an individual customer’s wants or needso 1. Process: customized/personalization—Starbucks, Chipotle, Subway, Coke machineo 2. Technology: mym&ms.com, miadidas, customized beef jerky, fitted clothing- Undifferentiated or mass marketing—same thing for everyone; no segmento Henry Ford: black car only, no other modelsStep 5: Develop a Positioning Strategy1. Determine consumers’ perceptions and evaluations in relation to competitors’2. Identify the market’s ideal points and size3. Identify competitors’ positions4. Determine consumer preferences5. Select the position6. Monitor the positioning strategyPositioning: establish your image in the market place- Miller Fortune: bad image in consumers’ eyes- Tide Total Care: “we’ll take care of you by taking care of your clothes”- Stonyfield: Petite crème: old fashioned- Air Wick: Home is in the Air: sent soldier three special scents from his family’s homeLecture 10 (February 17)- Jell-O changed campaign and position; focused more on emotional connection while families were making the producto **AN AD IS NOT ENOUGH: have to have packaging, ingredients, flavors, etc.o “Comfort Marketing” uses nostalgia, parents remember tradition when they were youngo Faces: “Jel-love”- Capri-Sun: no preservatives, changed to clear bottom; spent $45 million in advertising—“Cool Mom” commercial- Campbell’s traveled to interview consumers: immersed themselves as “live alongs”—ate meals, saw refrigerators, went shoppingo Saw bold, exotic spices which inspired new flavorso Campaigned with Spotify & had playlist promoting GO, where you could match soup and song- Rice Krispies advertised to moms under 34 with a simple, natural trend; Little Tummies commercial- Fisher Price little people dolls: Little People HomeMarketing Research ProcessStep 1: Defining the Objectives and Research Needs- What information is needed to answer specific research questions?o What to do with packaging / What do people want / How do we want to look?o Rolls or loaf bread in restaurants? What flavors desired?- How should that information be obtained?o Pixar’s Brave set in Scotland: went to see terrain for accurate portrayal and studied sword fighting while thereo In depth opinions or interviewing thousands?  Through McDonald’s Golden Arches (one year to research for angus snack wrap)o Starbucks’ blonde roast: online surveys after the idea was mentioned in store; thenused samples/taste testsStep 2: Designing the Research- Secondary data: Consulted first; has previously been collected