Marketing 351 Harry Anicich Chapter 8 Segmenting and Targeting Markets 1 Criteria for successful segmentation 2 Bases for Segmenting Consumer Markets a Substantiality a market segment needs many potential customers i Big enough Indentifiability and measurability b c Accessibility must be able to reach members of targeted segments with customized marketing mixes d Responsiveness Marketing can be segmented using any criteria that seem logical All segments seem to respond the same a Geographic Segmentation refers to segmenting markets by region of a country or the world market size density of people or climate i Professor spoke about doing his laundry in Hawaii b Demographic Segmentation Age gender income ethnic background and family life cycle series of stages determined by combination of age marital status and the presence or absence of children i Questions with one word answers ii In class story Two boys who live next door to each other everything about them is the same c Psychographic What do you do on the weekend i AIO Attitudes Interests and Opinions ii Personality iii Motives iv Lifestyles v Geodemographics tailors to people in specific neighborhoods with specific lifestyles d Usage Rate Segmentation amount bought amount consumed i 80 20 principal 20 of all customers generate 80 of all demand e Buying Processes i Satisficers business customers who place an order with the first familiar supplier to satisfy product and delivery requirements ii Optimizers business customers who consider numerous suppliers both familiar and unfamiliar solicit bids and study all proposals carefully before selecting one 1 Wal Mart purchaser takes 5 off invoices 3 Strategies for Selecting Target Markets a Target market group of people or organizations for which an organization designs implements and maintains a marketing mix b Targeting Strategy i Undifferentiated Targeting adopts a mass market philosophy ii Concentrated Targeting iii Multisegment Targeting 4 CRM as a targeting Tool a Personalization b Time Savings c Loyalty d Technology 5 Positioning a Product differentiation b Perceptual Mapping displaying or graphing in two or more dimensions the location of products brands or groups of products in customers minds c Repositioning changing consumers perceptions of a brand Chapter 9 Marketing Research 1 Paralysis by Analysis story about Vander Kamp foods 2 The Marketing Research Process Identify and formulate the problem opportunity a b Plan the research design and gather data c Specify the sampling procedures d Collect primary data e Analyze data f Prepare and present the report g Follow up 3 Different Types of Survey Research a Ethnographic research Story about eating salsa and chips i Study of human behavior in its natural context b Virtual Shopping c Experiment researcher alters one or more variables a Field service firm specializes in interviewing respondents on a 4 Collecting Data subcontracted basis 5 Analyzing data 6 Scanner based research a Cross tabulation pattern emerge compares multiple questions a A system for gathering information from a single group of respondents by continuously monitoring the advertising promotion and pricing they are exposed to and the things they buy b Scanner base research Symphony IRI Group Inc largest data collection agency on the planet i InfoScan symphony s most successful product 7 CRM Customer Relationship Management 8 Competitive intelligence assess their competitors and vendors a Professor talked about Interviewing competing VP Chapter 10 Product Concepts 1 Convenience Product Lower price low mental involvement high turnover 2 Shopping Product compared heavily more expensive than convenience product 3 Specialty Products expensive reluctant to accept substitutes 4 Unsought products New products product known that a buyer does not actively seek 5 Product Items Lines and Mixes a Product mix all the items that a firm sells b Product line items that are similar in the same firm c Product item specific version of a product d Product Lines organization i Advertising Economies ii Package uniformity 1 Soda cans iii Standardized components 1 Bottle caps iv Efficient sales and distribution v Equivalent quality 1 Cherry coke e Product mix width refers the number of product lines an organization offers f Product Line depth number of product items in a product line g Product modification i Quality modification usually down ii Functional modification iPhone iii Style Modification h Planned obsolescence commonly used to describe of modifying products so that those that have already been sold become obsolete before they actually need replacement i Product extension adds products j Product contraction eliminate products 6 Branding a Success of any business or consumer product depends in part on the target markets ability to distinguish one product from another b Brand name or term symbol design c Brand name part of a brand that can be spoken d Benefits of branding i Brand equity value of a company and brand names ii Global brand refers to a brand that obtains at least 1 3 of its earnings from outside its home country iii Brand loyalty e Branding Strategies i Manufacturers brand ii Private brand store brand iii Captive brands no evidence of the stores affiliation iv v Family branding Jack Daniels whiskey bbq sauce coffee Individual branding vi Co branding entails placing two or more brand names on a clothing product or it package 1 Eddie bower edition Ford Expedition vii Generic Product name product cannot be trademarked f Packaging contains and protect ones product promotes ones product facilitates storage use and convenience Recyclable g Labeling marketing tool safety tool i Greenwashing gives impression of environmental friendly 7 Global Issues in branding and packaging when not environmentally friendly a One brand name everywhere b Adaptations and modifications c Different brand names and different markets 8 Product Warranties Kennedy introduced as requirement in American market