MKTG 310 Week 3/4
MKTG 310 Week 3/4 MKTG 310
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This 2 page Class Notes was uploaded by jaiphen95 on Wednesday September 16, 2015. The Class Notes belongs to MKTG 310 at Northern Illinois University taught by Rich Wozniak in Fall 2015. Since its upload, it has received 10 views. For similar materials see Principles of Marketing in Marketing at Northern Illinois University.
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Date Created: 09/16/15
Segmenting Targeting and Positioning 0 Mass marketing market aggregation View the marketplace as a single large homogenous unit designs a single mix and directs it to the total market for a particular product 0 ie CocaCola marketing 0 Offers cost advantages with having a singularity marketing strategy Ineffectiveness of Mass marketing Consumers are composed of subgroups each unique Marketers need strategies to match the product to entertain to the personalities of different subgroups 0 Mass marketing is hardly used today except for plain commodities Product Differentiation 0 Means reformulating redesigning the product which may improve the product orjust alter it esthetically The promotion is aimed at the total marketplace Removes product form price competition The consumer can no longer compare it to competition because it rises above pricefactors alone What is Segmenting o Dissecting the marketplace into subgroups What is Targeting 0 Which subgroup does a business pursue What is Positioning 0 Establishing a differentiating image for a product to separate it from the competition we personify it Key Terms 0 Market segment Small subgroup within a larger one 0 Target market Specific subgroup a firm aims to do business with o Niche market Tiny and underserved market with VERY specific needs Benefits of a Marketmatching Strategy 0 Goal is to excel in meeting the needs and wants of your target market makes resource usage efficient and profitable o Firm can spend more time focusing on a few good ideas than a ton of bad ones 0 Sound marketing mix decisions more time efficient and effective Conditions for Effective Segmentation We need a heterogeneous marketplace and a divisible market with segments that we can identify What39s response variation We39re looking for a key characteristic among segments where they respond differently to a product from one segment to another Geographic segmentation involves separating the market based on the location of segments climate surroundings and population density ie Clothing food cars etc Demographic segmentation involves characteristics of the actual people in the market including their age gender occupation income education ethnicity etc ie children39s furniture healthcare jewelry Geodemographic segmentation combines demographic and geographic Small bits of data in terms of neighborhoods zip codes city blocks PRIZM potential rating index by zip market divides consumers into 66 different categories plus one unclassifiable so clients can know where their specific customer base is Psychographic segmentation bases a submarket off lifestyle and personality activities interests and opinions questionnaires reveal consumer39s lives Behavioral segmentation breaks up the marketplace based on attitudes reaction to products and promotional appeals Single variable segmentation uses a single criterion as opposed to multiple variable segmentation that uses a handful of criteria but can be complicated