BusAdmin 360 Principlesof Marketing Lecture 7 Outline of Last 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 Outline of Current Lecture I. Continuation of Ch. 9Current LectureCh. 9 Segmentation, Targeting, Positioning…continued Evaluate Segment AttractivenessMarketers first determine whether the segment is worth pursuing using several descriptive criteria: identifiable, substantial, reachable, responsive, and profitable? Identifiable: firms must be able to identify who is within their market to be able to design products or services to meet their needsSubstantial: determine if the market is large enough and has enough buying power to generate sufficient profits or be able to support marketing mix activities Reachable: consumer must know that the product or service exists, understand what it can do for them, and how to buy itResponsive: customers in the segment must react similarly and positively to the firm’s offering These 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.Profitable: focus assessment on the potential profitability of each segment, both current and future -market growth, competitiveness, market access Select the Target Market A firm assesses both the attractiveness of the target market (through SWOT) and its own competenciesUndifferentiated/Mass Marketing Strategy: 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 differencesDifferentiated: Target several market segments with a different offering for each, used to obtain a bigger share of the market and increase the market for their products overallConcentrated:Used when an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs Micromarketing: Firm tailors a product/service to suit an individual customer’s wants/needs, a.k.a. one-on-one marketing, have to be really good with your supply chainDeveloping Positioning Strategy Defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products-firms position products/services based on different methods: Value proposition: unique value that a product/service provides to its customers, and how it is better than and different from those competitorsSalient attributes: focus on attributes most important to the customerSymbols: represents the brandCompetition: position yourself against a specific competitor or an entire product/service classification Perceptual Map: displays, in two or more dimensions, the position of products or brands in the consumer’s mind -determine consumers’ perceptions and evaluations of the product/service in relation to competitors -identify the market’s ideal points and size, competitors’ positions, and determine consumer preferences. -Then, select the position and monitor the strategy since markets continually