1. Analyze consumer product relationship
2. Investigate segmentation bases
3. Develop product positioning
4. Select segmentation strategy
5. Design marketing mix strategy
The first task in segmenting the market is Analyze consumer product relationships—this entail the analysis of the affect and cognition, behaviour, and environments involved in the purchase/consumption process.
3 general approaches to this task—
1. Marketing managers may brainstorm the product concept and consider what types of consumers are likely to purchase and use the product and how they differ from those less likely to buy.
2. Focus groups and other types of primary research can be used for identifying differences in attributes, benefits, and values of various potential markets
3. Secondary research may further investigate differences in potential target markets, determine the relative sizes of those markets, and develop a better understanding of consumers of this or similar products
Investigate segmentation bases. There are no simple way to determine the best bases for segmenting markets.
Benefit segmentation. The benefits people seek in consuming a given product are the basic reasons for the existence of true market segments.
Psychographic segmentation. Differences on consumer lifestyles. Activities(work, hobbies, vacations), interests (family, job community), opinions9social issues, policitcs, business)
Person/situation. Market can be divided on the basis of usage situation. Example: clothes and footwear—market are divided on the basis of sex, size, usage situation or social events
Geodemographic segmentation. Identifies specific households in market focusing on local neighbourhood geography (such as zip codes) to create classifications of actual addressable, mappable neighbourhood where consumers live and shop.
Develop product positioning. Positioning the product relative to competing products in... [continues]
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