Professional Documents
Culture Documents
Learning Goals
1. Define the three steps of target marketing: market segmentation, target marketing, and market positioning 2. List and discuss the major bases for segmenting consumer and business markets 3. Explain how companies identify attractive market segments and choose a target marketing strategy 4. Discuss how companies position their products for maximum competitive advantage in the marketplace
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Psychographic segmentation
Lifestyle, social class, and personality-based segmentation
Behavioural segmentation
Occasions, benefits sought, user status, usage rate, loyalty status.
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Discussion Question
Based on the car examples on the following slide, how do car manufacturers use the following segments when marketing products?
Geographic Demographic Psychographic behavioural
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Operating characteristics
Technology, usage status, customer capabilities
Personal characteristics
Buyer-seller similarity, attitudes toward risk, loyalty
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Economic factors
Population income or level of economic development
Cultural factors
Language, religion, values, attitudes, customs, behavioural patterns
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Accessible
Can be reached and served
Substantial
Large and profitable enough to serve
Differentiable
Respond differently
Actionable
Effective programs can be developed
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Learning Goals
1. Define the three steps of target marketing: market segmentation, target marketing, and market positioning 2. List and discuss the major bases for segmenting consumer and business markets 3. Explain how companies identify attractive market segments and choose a target marketing strategy 4. Discuss how companies position their products for maximum competitive advantage in the marketplace
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Target Marketing
Target Market
Consists of a set of buyers who share common needs or characteristics that the company decides to serve
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Target Marketing
Evaluating Market Segments
Segment size and growth Segment structural attractiveness
Level of competition Substitute products Power of buyers Powerful suppliers
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Micromarketing:
The practice of tailoring products and marketing programs to the needs/wants of specific individuals and local customer groups Includes: local marketing and individual marketing
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Target Marketing
Socially Responsible Targeting
Some segments, especially children, are at special risk Spillover from adult to children markets Many potential abuses on the Internet, including fraud Internet shoppers Products of questionable benefit Controversy occurs when the methods used are questionable
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Learning Goals
1. Define the three steps of target marketing: market segmentation, target marketing, and market positioning 2. List and discuss the major bases for segmenting consumer and business markets 3. Explain how companies identify attractive market segments and choose a target marketing strategy 4. Discuss how companies position their products for maximum competitive advantage in the marketplace
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Positioning
The way the product is defined by consumers on
important attributes - the place the product occupies in consumers minds relative to competing products relative to competing products Involves implanting the brands unique benefits and differentiation in the customer mind Perceptual positioning maps show perceptions of brands on important buying dimensions
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Learning Goals
1. Define the three steps of target marketing: market segmentation, target marketing, and market positioning 2. List and discuss the major bases for segmenting consumer and business markets 3. Explain how companies identify attractive market segments and choose a target marketing strategy 4. Discuss how companies position their products for maximum competitive advantage in the marketplace
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