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This 8 page Class Notes was uploaded by Marissa McKinney on Sunday October 18, 2015. The Class Notes belongs to MKTG 25010-001 at Kent State University taught by Lawrence Marks in Summer 2015. Since its upload, it has received 14 views. For similar materials see Principles of Marketing in Marketing at Kent State University.
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Date Created: 10/18/15
NCN MALJLLE f Len 1r a 7 quotr 913 quot Pom M Am If f 350 mp wa 226 cm 5 m Y i 0m d dak yeah 1 s m H me my m 2 4 ii We need to target our market segment by positioning our offer BUT first we need to define and describe the target market in detail I Market Segmentation another ViEW a The process of dividing the total market for a good or service into several smaller internally homogenous Le a lm all r gmups i Members of each group are similar with respect to the factors that influence demand 1 For example 3 types of cars 8 at g Earar Jquot b Ola ad of mC l s iij 5530qu b Segmentation Benefits and Challenges i More efficient use of marketing resources a 1 Examplesl f mdUSWJ Ham Cefg wlal all awr ii Can help to create rapid growth 1 Example Home CCY39P has becom Am worlds Wgcsr producer on EVE Roscoe emu4s iii Challenges Be Careful a 391 Too much complexity can frustrate consumers 3 Example IV Process of Market Segmentation a identify wants f withinamaf hd i Market research is used to explore this with CURRENT and POTENTIAL consumers mag i VOer 11h pervtimer nj and f f omerwry consumer dd mme behavior isolle OS satiation 7 a J66 mortar Iquot 391ch ll Cell phone Example What do people want in a cell phone 1 Texting 2 Web access 3 Gaming Apps 4 Camera or video 5 Music 9 6 b 6 Fashion 7 Simple Iowatech 8 Don t Carequot 9 Business Users omewi jk gt i Identify the Characteristics that define the segment what do prospective segments share that make them different from other segments with different needswantsdesires Example Occupations and boots C d QafchiS Determine the biZ l a all are being bail D gt fol i How large is the segment in terms of numbers demand and dollars Le potential sales ii How went their current options iii How 5MO I 79 iv FORECASTS can help to determine which segments are worth pursuing of the segment and how well they by current offerings is their need how dissatisfied are they with is the existing competition a Note See the textbook Chapter 8 for sales forecasting techniquesquot that may be very valuable here This should allow us to determine the size of the segment the urgency of the need and the strength of the competitionso I help determine whether or not this segment seems to be appealing for us Market Segmentation Conditions that indicate a useful segment a Example dCTVW daa The segment is Measurable and we can about the segment mtfmmbii i obtainable a xe l A m dch39T dhu39iro 39ntc lzlrwli all rmllquot AilrEituit b Is hreese ghjient 7 61 C39C39Cagipif 7 f 97 eg The Cleveland Plain Dealer o Is the segment large in to be profitable for us i Creating a new productiservice advertising it distributing it facing down competition is all 6 9015 l M ii Is there enough size demand and sales to provide the Pfoglf 7 wewill need iii In some cases we can be successful by treating EACH customer as a separate segment through l Y SS JLGYT Jl ZOQ lm Examples quotD ll ComPulCrf blc5 lea if midwing Cubbmcl v and bpcggcalrorb Vi Market Segmentation Grouping Buyers into Segments a Based on the Customer s reason for if i WWCIquot 7 For personal use Final Consumer ii EL btr S To use in the organization to resell or to make other products Black and Decker and DeWalt Example 8amp0 JCSC5 d irt01 ll JUL professw cits Cum em new 55 more Mates Video Felber on Market Segmentation at Felber amp Felber 39 a Felber amp Felber has focused on the Girl duff b There are many manufacturing companies doing well c Felber amp Felber only needs a few of these to FOCUS on with their specialties 39seg ment d Green Marketing and Early Stage Clients e They apply what they learned from other clients to this segment However while useful this is too broad so look at Consumer Market segmenation b Bases for Segmenting Consumer Markets from the figure i Geographies Region Size Urbanrural Climate 9398 ltFHL OOZHgt ii Demographic Income age gender family life cycle social class education occupation ethnic background iii Psychographics eg VALS iv Behavioral segmentation Benefits desired usage rates v Usage Rate Example 39 r KMOQWI39C Tiaraam U U by Age l 2 P39sychographic Segmentation a As the American population becomes more diverse and affluent demographic researchers are changing the way they define segments of American society b C 7 g has defined 14 distinct groups of consumers based on recent Census and consumer data that emphasize income age and lifestyles Segments of each group buy the same types of cars read the same magazines and watch the same television shows lt Li B ES T Y L B gt URBAN SUBURBAN SECOND TOWN amp 7 CITY COUNTRY Urban Uptown Ewe Suburbs Second City Landed Socrety Gentry The Country Midtown Mix A luentials City Centers 370 Middle burbs 39 19 7 America urban cores inner Suburbs EggC39ty Rustic Living a Claritas 14 segments are divided into 66 smaller clusters For more see USA Today Who We Are Redefining our demographics 99 gut htthwwwusatodavoomfnewsigraphicswhowearen lashhtm httplwwwelaritascomefyBestSegmentleefaultisp useful for directamail promotions retail outlet selection decisions about the mix of productsibrands to offer in the area 3 Behavioral Segmentation a or c is an ideal approach but often hard to measure U i Example What are the benefits of wearing clothing that has label on the outside ii Citicard example Amara pchdUCls 05 Per Vrl OUS CiWCert C EL CCclill gmall business hand e m0 grill VCIlUC 394 Usage Rate a Non users bl Light users medium users heavy users i Best Buy Example ices war i2 02 It ll U366 a wow Ear 50 r073 09 all sales Vll I Traditional Target Market Strategies 8 Witkoth S39WGl gbf massmarket undifferentiated iii arke one size tits all i Use a ling hf marl ci l SW foreveryone A shotgun approach VERY UNCOMMON perhaps some gpmducts cm Com i em ii Potential Advantages g r r a 7 I 30557 I 1 Lower if 0356 gitOrin U75 2 mm thumbK and 2 Easy to QWOJ WQQQ 7 if b ll ggfr giah Strategy i Product differentiation involves using different elements of the marketing mix to help consumers see the product as being different from the competition and better for the consumer ii Apple example 100 seen Concernaim i Create a single marketing mix which targets a single well defined group ii Can be a good way to VOrd tquot in the broader market 1 Examples 7 iii The marketer can earn a reputation as an 5quot or a specialist i W in this n I CM market iv Niche markets are often though not always relatively Erna it no Ci WW5 8 Example 59er paintball sparalisky v 80 this is one way for a firm with l m Y xmf 7 to be competitive Vi CAUTION A danger of this approach is that you are H a O EOW 683 m lbaaraa 1 Example GM had ch lih inak olca mom lemma d No ha 9 it 569 Simtam i ldlentify MULTIPLE segments and develop market and manage MULTIPLE marketing mix offering attempting to satisfy the needs wants and desires of EACH segment with a gifted marketing mix eg Bayer HealthCare Products ii Advantages 1 Eliminate or reduce l exodOFr tB 2 Become Nd Kmart n in tyne pmdu c 00M m air ow iii Disadvantages 1 Higher total imamlow quot3le web segmen needs jeparak OO uo l 101 l 2 Higher I Edgy j Rhee 3 to C6 3 Highergpmnnt gm 4 soi Woe muo be OgESDLWl SG leo For example it is estimated1 that Examples Gap Clothing Segmentation and Jeans segmentation e Example Muller on Segmentation at Timken i Primarily by industry 1 Primary metals 2 Wind energy 3 Power generation 4 Cement 5 Automotive 6 Off highway construction vehicles ii And then further with micro segmentation 1 Short lead time 2 Longer life 3 More productivity iii Challenge to discover the segments needs and to create a mix tor each f Example Bayer Consumer Products Example httpwwwconsumeroarebayercomscriptspagesenourbrands ndexphp i Background a Employees 6600 1 0 2