Chapter 6 and 7
Chapter 6 and 7 MKT 423 Market Strategy
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This 3 page Class Notes was uploaded by Samantha Bressler on Friday October 7, 2016. The Class Notes belongs to MKT 423 Market Strategy at College of the Ozarks taught by Mrs. Emily Emery in Fall 2016. Since its upload, it has received 5 views. For similar materials see Market Strategy in Business Administration at College of the Ozarks.
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Date Created: 10/07/16
Forecasting: Statistical Method: uses past history to predict things that will happen in the future. Not good for new products, have to keep up with changing products Observationbased: observing directly and record buying behaviors. Surveys or focus groups: showing a consumer a product and asking them how much they would want to buy this product Analogy: good for when there are no statistics or observation analysis to pick up on Judgement: forecast based solely on experience or knows a lot about the area. Market Test: utilized when its a new product and under a controlled environment. Adoption Process: It always takes time for people to accept a new product Five steps: pg 159 Risk Relative Advantage Relative Simplicity Compatibility with current behavior Ease of smallscale trial Innovation Curve: pg 158 innovators early adopters early majority late majority laggards Segmenting and target marketing Segmentation: grouping based on product choice target marketing: how companies go after those groups three steps in the market segmentation process identify a homogeneous segment that differs from other segments price, product, promotion, and place specify criteria that define the segment determine segment size and potential Segmenting demographically age gender income occupation education race and ethic origin Segmenting geographically different locations vary in: sales potential growth rates customer needs cultures climates service needs competitive structures purchase rates for a variety of goods trade area: the area included within such a geographically defined region Geodemographic segmentation marketers targeting emerging markets in the developing world must pay particular attention to market segmentation within the geographic regions they target. do not assume that every person in the community is lower class. nielsen.com Behavioral segmentation consumer needs product usage and purchase influence product usage is important because in many markets a small proportion of potential customers makes a high percentage of all purchases. market segmentation based on sources of purchase influence for the product category is relevant for both consumer and organizational markets. lifestyle 5 steps of targeting: Step 1: Select Marketattractiveness and competitiveposition factors Marketattractiveness factors: customer needs and behavior market or market segment size and growth rate macro trends: demographic sociocultural economic political/legal technological natural Competitiveposition factors: opportunity for competitive advantage firm and competitor capabilities and resources attractiveness of industry which we would compete Step 2: Weight Each Factor Exhibit 7.9 Measured through weight and rating (010) then multiply= total market attractiveness and competitive position factors Step 3: Rate segments on each factor, plot results on matrices Exhibit 7.10 Step 4: Project future position for each segment make sure to improve as your segment changes Step 5: Choose segments to target, allocate resources Different targeting strategies suit different opportunities: Nichemarket strategy serving one or more segments that, while not the largest, consist of a sufficient number of customers seeking somewhatspecialized benefits from a good or service Massmarket strategy design a single productandmarketing program that will appeal to the largest number of consumers. growthmarket strategy develop for emerging users
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