Chapter 9 notes
Chapter 9 notes MKT1211K
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This 4 page Class Notes was uploaded by Lia Pearson on Thursday October 1, 2015. The Class Notes belongs to MKT1211K at Jamestown Business College taught by Mrs. Halftown in Summer 2015. Since its upload, it has received 56 views. For similar materials see PRINCIPLES OF MARKETING in Marketing at Jamestown Business College.
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Date Created: 10/01/15
Chapter 9 Segmentation Targeting and Positioning Identify the ve steps in the segmentation targeting and positioning process Summarize each step Step 1 Establish Overall Strategy or Objectives The rst step in the segmentation process is to articulate the vision or objectives of the company s marketing strategy as clearly as possible The segmentation strategy must be consistent with and derived from the rm s mission and objectives as well as its current situation The rm uses SWOT to do this Step 2 Segmentation Methods The second step in the segmentation process is to use a particular method or combination of methods to segment the market This step also develops descriptions of the different segments which help rms to better understand the customer pro les that are in each of the segments Then the rm choses how they wish to segment using strategies demographic geographic psychographic etc Step 3 Evaluate Segment Attractiveness The third step in the segmentation process involves evaluating the attractiveness of the various segments To undertake this evaluation marketers must rst determine whether the segment is worth pursuing They do this using several descriptive criteria Is the segment identi able substantial reachable responsive and pro table Can you identify a distinct market Is the segment large enough to be of bene t to the rm Is the segment reachable through marketing strategies Will the market be pro table through action Marketers must ask themselves all of these questions and think deeply on them when evaluating the attractiveness of the segment they are considering Step 4 Select Target Market The fourth step in the process is to select a target market or segment which they wish to target The key factor that is likely to effect this decision is the marketers ability to pursue the opportunity Firms use both SWOT and CDSTEP to choose which segment is best for them to choose In this step the rm considers the overall attractiveness of each of the market segments and chooses the one they believe will have the best success for their rm Step 5 Develop Positioning Strategy The nal step in developing a market segmentation strategy is positioning Market positioning involves a process of de ning the marketing mix variables so that target customers have a clear distinctive desirable understanding of what the product does or represents in comparison with the competing products on the market Outline the different methods of segmenting a market Geographic Geographic segmentation organizes customers into groups based on where they live Thus groups could be organized by country region or areas within a speci c region Demographic Demographic segmentation groups consumers according to easily measured objective characteristics such as age gender income and education Psychographic Psychographic segmentation explores habits feelings beliefs psychological needs selfvalue and targets consumers based on these factors VALS survey organizes consumers into different segments and offers psychographic information to rms for a price which is usually very expensive Because psychographic information is expensive to obtain it is not usually a good option for smaller businesses with smaller budgets to use Geodemographic Geodemographic segmentation uses a combination of geographic demographic and lifestyle characteristics to classify customers into different segments or groups Bene t Bene t segmentation groups consumers on the basis of the bene ts they derive from producs or services Because marketing is all about satisfying consumer needs and wants dividing the market into segments whose needs and wants are best satis ed by the product can be a powerful tool Behavioral Segmentation Divides customers into groups on the basis of how they use the product or service some common behavioral measures include occasion and loyalty Describe how rms determine whether a segment is attractive and therefore worth pursuing Firms use targeting strategies such as mass marketing concentrated targeting strategies etc and use that information to determine whether or not a segment is worth pursuing for the rm Articulate the difference among targeting strategies Concentrated ta rgeting strategy A concentrated targeting strategy is when an organization selects a single primary target market and focuses all of its energies on providing a product to t that market s needs it is using a concentrated targeting strategy Differentiated targeting strategy Firms using a differentiated target strategy target several market segments with a different offering for each An example of this strategy would be a magazine company publishing several different types of magazines with each of the magazines appealing to a different target segment Undifferentiated targeting strategy Also known as mass marketing the undifferentiated targeting strategy is when everyone might be considered a potential user of its product This marketing strategy is broad and attempts to appeal to as many segments as possible The undifferentiated targeting strategy is usually a more expensive strategy because depending on the product it may not appeal to everyone Micromarketing Micromarketing is when a rm tailors a product or service to suit an individual customer s wants or needs An example of micromarketing would be customer cocreation or allowing the customer to customize their product De ne positioning and describe how rms do it Positioning is how a rm presents their product to consumers Firms do this through websites newspaper ads radio ads and TV ads
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