DOC PREVIEW
UW-Milwaukee BUSADM 360 - Beginning of Ch. 9 Segmentation, Targeting, and Positioning

This preview shows page 1 out of 4 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 4 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 4 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

BusAdmin 360 Principles of Marketing Lecture 6 Outline of Last Lecture I. What factors go into assessing global marketsII. What to consider when deciding on a global entry strategyIII. Choosing a global market strategy Outline of Current Lecture I. Segmentation-Understand why and how marketers use segmentation to determine appropriate groups to targetII. Learn how to determine if a segment is worth targeting-Explore ways to target to general and/or specific market segmentsIII. Use techniques to position your product or service correctly Current LectureCh. 9 Segmentation, Targeting, and Positioning Segmentation: Firms must position their offerings in the minds of their target market in such a way that these consumers understand why they meet their needs better than other, competitive offeringsSegmentation: “the who to target”Targeting: “the how will you target”Positioning: “the where in the consumer’s mind”Step 1: Establish Overall Strategy Derived from mission statement, SWOT analysis, strategy map positionThese 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.Ex: Coca Cola’s objective is to increase sales in mature industry-Weakness: lack of successful product lines in emerging markets-Identifying emerging markets leads to opportunities Step 2: Segmentation MethodsSeparate the market into segments-Find groups that are similar and dissimilarEx: Carbonated beverage market-caffeinated/decaffeinated-regular/sugar freeMethods for describing segments:-Geographic: organizes customers into groups on basis of where they live; region, areas within a region-Demographic: according to easily measured, objective characteristics such as age, gender-Psychographics: separates by how consumers describe themselves; how people self-select based on the characteristics of how they choose to occupy their time; their behavior and underlying psychological reasonsSelf-Values: are goals for life, overriding desires that drive how a person wants to live their lives; self-respect, self-fulfillmentSelf-concept: the image people ideally have of themselvesLifestyles: the way we live, how we live our lives to achieve goals VALS: evaluation technique for psychographics Vertical dimension: level of resources, including income, education, health, innovativenessUpper segments have more resources and are more innovative than the lower segmentsHorizontal dimension: psychological motivation for buyingBetter predictor of buying than demographics because two people can be in the same demographic category but have different buying habits Geodemographic: combination of geography, demographics, and lifestyle characteristicsof consumersSegment by BenefitBenefit segmentation: groups consumers based on benefits they derive from products/services; needs and wants are satisfied Behavioral Segmentation: groups based on how the consumer uses the product/serviceLoyalty Segmentation: finding and maintain customers who feel so strongly that the firm can meet their relevant needs best that any competitors are virtually excluded from their consideration; profitable in the long run-Using multiple segments allows marketers to use the benefits of each method while minimizing the limitations Step 3: Evaluate Segment Attractiveness Determine whether the segment is worth pursuing, using several descriptive criteria:-Identifiable: firms must be able to identify who is within their market to be able to design products accordingly -Sustainable: determine if the market is large enough and has enough buying power to generate sufficient profits or be able to support the marketing mix activities - Reachable: consumer must know that the product/service exists, understand what it can do for them, and how to buy it-Responsive: the customers in the segment must react similarly and positively to the firm’s offering-Profitable: focus assessment on the potential profitability of each segment, bothcurrent and future Market growth (current size and expected growth rate)Market competitiveness (number of competitors, and barriers to entry)Market access (assessing distribution channels, brand familiarity)Step 4: Select the Target MarketFirm assesses the attractiveness of the target market Undifferentiated Targeting Strategy/Mass Marketing: used when everyone might be considered a potential user of its product; focuses on the similarities in needs of the customers as opposed to the differencesIf the product or service is perceived to provide similar benefits to most customers, there is little need to develop separate strategies for different groupsDifferentiated targeting strategy: target several market segments with a different offering for eachUsed because it helps firms obtain a bigger share of the market and increase the market for their products overall, also minimizes riskConcentrated targeting strategy: used when an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needsMicromarketing: when a firm tailors a product or service to suit an individual customer’swants or needs; also called one-on-one


View Full Document

UW-Milwaukee BUSADM 360 - Beginning of Ch. 9 Segmentation, Targeting, and Positioning

Download Beginning of Ch. 9 Segmentation, Targeting, and Positioning
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Beginning of Ch. 9 Segmentation, Targeting, and Positioning and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Beginning of Ch. 9 Segmentation, Targeting, and Positioning 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?