Chapter 9 Lectrure
Chapter 9 Lectrure 86498 - MKT 3010 - 006
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86498 - MKT 3010 - 006
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This 4 page Class Notes was uploaded by Alexis Cone on Friday September 18, 2015. The Class Notes belongs to 86498 - MKT 3010 - 006 at Clemson University taught by Amanda Cooper Fine in Spring 2015. Since its upload, it has received 70 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
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Date Created: 09/18/15
Chapter 9 09172015 Market Segmentation STP Analysis 0 Step 1 Establish overall strategy or objectives 0 Segmentation strategy 0 Consistency with what we have already done in the marketing plan Mission Objectives Current situation 0 Step 2 Segmentation o Segmentation is dividing the market into subgroups 0 Help the rm understand customer Pro le Similarities Dissimilarities 0 Links needs to actions 1 Identify market needs 2 Take steps to segment and target markets 3 Execute marketing mix 0 ex Zapposcom found that a lot of people needed to be able to get shoes in a more convenient manner went after consumers who were timepoor or lived in places where shoes stores were lacking o Segmentation Methods Demographic segmentation a Breaking up the market by different demographics age income ethnicity ect n Advantage straightforward easy to do and is typically very cheap because of the census n Disadvantage doesn t always give the best information about predicting purchase behavior a Ex McDonalds can look at income purchasing power families young parents with kids high school and college kids 0 Segment based on age l led to happy meal for young kids the dollar menu for high school and college kids and a mighty kids meal for a little bit older kids Geographic segmentation El Segmenting customers based on where they live region country state city zipcode ect Advantage rather straightforward and helps companies that want to target speci c areas Disadvantage doesn t tell as much about purchase intention Proximity marketing idea of marketing to customers based on their location to your store smaller radius Geocoding way to gure out where customers are stores asking for your zip code at checkout Only successful when the language surrounding a product is different for different places Ex Campbell s Fiesta Nacho Cheese Soup in the east the version was to spicy and in the southwest it wasn t spicy enough Therefor Campbell s has altered the product to make two different versions for the two different regions Psychographic segmentation El Breaks down into three things 0 Self Values life goals what do you want to do with your life to feel successful 0 Self lmageConcept how you view yourself 0 Lifestyle activities interest and opinions VALS Survey 0 Value and lifestyle survey Advantage better for predicting and understanding consumer behavior Disadvantage more expensive more time consuming Bene t segmentation El What is the bene t that the customer is trying derive from a product Ask why you are using a product What are you trying to get out of a product Ex toothpaste options whitening enamel strengthen gum health cavity issues ect Behavioralsegmentation El How do consumers use a product n Usage situation 0 What is the situation surrounding how you use the product 0 Occasional segmentation holidays wedding tailgates ect n Usage rate 0 How often do you use the product 0 Potential user rst time user regular user heavy user ect n Loyalty How much you use a speci c companies product 0 Companies want consumers to become loyal Geodemographic segmentation n Combination of geographic demographic and lifestyle Segments based on all three a Better than geographic or demographic alone but still isn t as good as psychographic 0 Step 3 Evaluate Segment Attractiveness O O O O 0 Determining which segments to go after Targeting is picking out which segments to go after and Positioning is how we go after those segments ldenti able are the segments distinct and unique from one another did we choose a good segmentation strategy Who is in the market Substantial are there enough people in the segment for us to go after that segment You can have a smaller segment if they have a largerhigher purchasing power Reachable made up of three things Segment has to know your product exists Segment has to know how your product adds value to their life Segment has to know where to get your product Responsive does the segment react positively to your product or brand Pro table how pro table can this segment be now and in the future 0 Step 4 Selecting Target Markets 0 Undifferentiated Targeting Strategy Mass marketing selling the same product to everyone Uniform bene ts No separate strategies created Advantage low cost everyone can be a consumer Disadvantage there is no branding competing solely on price and loyalty doesn t exists More common during the industrial revolution when the assembly line rst came around Ford
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