Popular in Introduction to Comparative Politics
Popular in Political Science
This 3 page Class Notes was uploaded by Elizabeth Gruber on Wednesday April 20, 2016. The Class Notes belongs to PSC1001 at a university taught by a professor in Fall. Since its upload, it has received 17 views.
Reviews for Test
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 04/20/16
Segmentation & Targeting Mass vs. Target marketing recap How to understand “market o Market = customers o Product vs. Benefit Narrow view: market in terms of product Broad view: market in terms of benefit (customer-oriented) Focus on the benefit -> allows you to be more creative with your products o How to define the market – Too narrow definition -> limits possibilities Too broad definition -> limits focus Start broad -> narrow o Ex. Bic’s view of the market Focused on benefit to customers Ended up with three different products Failed with introduction of perfume line o Four-part Market Description (see slide) Market Segmentation Steps o Name broad product-market o Segment the market to find a target market + marketing mix o All customer needs -> Some generic market -> on broad product-market Narrow down to specific product-market o Segment into possible target markets o Select a targeting approach Types of Segmentation Characteristics o Descriptive Segmentation Geographic Segmentation Common tastes and preferences Don’t need to use statistical tools Divide the market based off of nations, states, and cities Demographic segmentation Divides market using age, race, etc. Don’t need to use statistical tools PRIZM o Analyzes geographic, demographic, and behavioral data Issues with descriptive segmentation Hard to relate it with the needs of specific consumers o Behavioral Segmentation Based on customer behavior Divides market based on customers’ knowledge of, attitude toward or response to, a product Statistical tools used: PCA, factor analysis, clustering More expensive than descriptive segmentation More accurate than descriptive segmentation Aggregating Customers o Segmenting = aggregating Cluster people with similar needs into a “marketing segment” Market segment – a homogenous group of customers o Difficulties of segmenting Hard to figure out how many segments What to do with unique customers? o Analyzing Behavioral Clusters Define variables to use as the basis for clustering Needs, decisions roles, occasions, user status, awareness Collect the data (first or secondary) Survey, interview, observation Should collect geographic or demographic data Decide the number of clusters Scientific rule o Homogenous within, heterogeneous between, substantial, and operational Avoid segmenting dimensions that have no practical operational use Map and interpret clusters Need stat tools Analyze and name each cluster o Recent technology Collaborative filtering Segment and target based on the “wisdom of the crowd” Issues o Cold start problem – need a substantial number of users Pandora’s Approach o Manually analyze and organize each product’s attributes using a complex algorithm o Music Genome Project o Huge cost and effort Cold start isn’t as significant of an issue as the huge cost and effort of the Music Genome Project Types of Targeting (see slide) o Segmenter Develops a different marketing mix for each segment Customer benefit is higher o Combiner Aims at two or more submarkets with the same marketing mix o Effects of dimensions Relation of dimensions to strategic dimensions Ethical Issues of Segmentation and Targeting o Customers with Disadvantage Firms may use segmenting to find out customers who cannot reject offers o Discriminating Customers Firms may use segmenting to get more profit by discriminating Can target different customers with different prices Price discrimination is illegal only when it’s done on the basis of race, religion, nationality, or gender, or if it’s in violation of antitrust or price-fixing laws Need for positioning (see slides) o Differentiate marketing mix to better meet customers’ needs Competitive advantage Positioning o How customers think about products in the market Managers should understand How customers think about all products in the market How they want to customers to think about their products Positioning decisions Image/perception is more important than truth o Physical change o Image change Perceptual mapping o Common mistakes Only considering current dimensions Focusing only on narrow view (product)
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'