Chapter 8 Segmenting Targeting and Positioning EXAM 2 REVIEW Benefits needs Variables used to Segment Consumer Markets Demographics age or generation gender income or social class family life cycle race and ethnicity User rate segmentation 20 of customers generate 80 of demand Psychographics personality motives lifestyles Geography region climate market size Behavior usage former user loyal user 1st time use heavy user occasion Benefit based on benefits the group seeks from the product Cluster customers into homogenous customer segments that differ from other segments based on needs and wants Identify observable traits of those segments Variables used to Segment Business Markets Geographic location Company characteristics o Industry o Company size o Volume of purchase o Satisficers place orders with first familiar supplier o Optimizers consider numerous suppliers Buying process Analytical Tools for Segmentation Mediamark Helpful for demographic segmentation Also provides media habits websites visited tv shows watch magazines read Available for many consumer products and some business products services Surveys Useful for collecting demographics combined with benefits needs sought in choosing Survey data can be analyzed with statistical procedures such as cluster analysis to determine segments Substantiality large enough to warrant a special marketing mix Indetifiability and Measurability Criteria for Successful segmentation Text Accessibility Responsiveness Steps in Segmenting a Market Text Design implement and maintain appropriate marketing mixes Select a market or product category for study Choose a basis or bases for segmenting Select segmentation descriptors Profile and analyze segments Select target markets Picking the Target Market Once segmentation is complete evaluate each segment on these criteria Fit of the segment with company s goals mission and current positioning Company s strengths and weaknesses with that segment Resources necessary to market successfully to the segment Need for availability of appropriate collaborators to market successfully Competitive intensity impacts difficulty in targeting a segment Forecasted financial return from the segment Targeting Strategies Undifferentiated o Target everyone in the market with a general marketing approach that fits the average o Often least effective use of marketing budget Micro Marketing One to One Segments of One o Customized solutions o Usage is increasing largely due to new technology Concentrated Multi segment o Target a single segment large or niche o Offer 1 or more products to this single segment o Target multiple segments each with a different product and marketing Positioning Strategies What is positioning o The act of designing the firms market offering so that it occupies a distinct and valued place in the minds of its target customers o Umbrella positioning commonly used to establish corporate positioning or a family brand o Unique positioning for an individual brand or individual project Developing a positioning strategy o Evaluate competition and identify product strengths o Identify what s most important to customer choice for your targeted segment o Positioning strategy should emphasize something your brand excels at and its important to customer choice Product Differentiation distinguish products from competitors Perceptual Mapping displaying dimensions location brands etc in customers mind Repositioning changing customers perception of brand Common Approaches Positioning Bases o Attributes features o Price and quality o Product form o Customer service o Employees o Durability or reliability o Services or extras o Personality image o Ordering delivery ease o Distributors The Role of Targeting and Positioning Foundation from which marketing mix decisions are made Product service decisions what features or services are needed to deliver the required benefits of your chosen target market Pricing decisions how should the product be priced relative to competition to convey our chosen positioning to our target market Promotion what should promotional messages say to create the desired perception in the target customers mind Place through which channels should the good or service be marketed to create the desired perception in the target customers mind Chapter 9 Marketing Research Why Should Marketing Research be conducted Where there is a high level of uncertainty in what marketing strategy is best When value of research information exceeds the cost of generating information When time and budget permits The Role of Marketing Research Descriptive gathering and presenting factual statements Diagnostic analyzing and explaining data to diagnose cause Predictive make what if predictions regarding marketing decisions The Marketing Research Process Identify define the problem to research 1 2 Plan the design gather secondary data 3 Specify sampling procedure 4 Collect primary data 5 Analyze data 6 Prepare present report 7 Follow Up Sampling Probability samples being selected Non probability samples population Common Marketing Research Topics New product concepts Advertising Pricing Package design Names and logos Service quality Buying habits Color Preference Typical Usage Brand Awareness attitudes Brand Image Needs wants Traffic patterns Web site behavior Competitive intell Satisfaction o A sample in which every element in the population has a known statistical likelihood of o Any sample in which little or no attempt is made to get a representative cross section of the Common Research Designs for Primary Data Collection Survey research o Most Common Research Tool o Methods email web phone mall intercept interviews mail o Good for measuring descriptive data Brand awareness Satisfaction Brand perceptions Importance criteria Purchase intentions Demographics Focus groups Observational studies o 25 of all market research expenses o Very popular with consumer packaged goods companies ad agencies o Traditional conference room setting o Growing Usage chat room or web conferencing o Typically qualitative data Good for eliciting feelings and motivations Can answer why o Growing area of research o In store observations o Mystery shoppers o Ethnographic research o Scanner data and loyalty card systems o Internet tracking of clickstream data emails facebook twitter data o Eye tracking research Experiments o Predictive role of market research o A research approach in which one variable is manipulated and effect on another
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