Marketing Day 6
Segmenting Consumers & Positioning Products
I. Market Segmentation
Process of dividing up a market into smaller groups (called segments)
Groups are designed to have similar wants & needs
Idea is that firms can use their marketing mix to tailor products for the diff groups
II. Targeting
Firms then develop new products (or reposition old ones) to target lucrative groups of consumers
Targeting Strategies
Undifferentiated: entire market is target market; 1 marketing mix (theoretical)
Homogenous market-similar needs
Differentiated: 2 or more segments; more than 1 marketing mix
Concentrated: single market segment; 1 marketing mix (single sites)
df
III. Cluster Analysis
Multivariate statistical analysis technique that identifies customer segments
Researcher measures things like price sensitivity & importance of quality & on-time delivery
Cluster analysis identifies groups (segments) of customers that have similar characteristics
Firms can then plot the segments against their core competencies & target the groups w/ the most sales potential
Dfd
IV. Segmentation Bases
Demographics
Describe characteristics of a pop.
Gender, age, ethnicity, edu., religion,
Iphones, Dr. Pepper 10 (not for women)
Geographic
Region, city size, urban/rural, region
McDonald’s
Psychographics
Personality, motives, lifestyles
Ex: skiers, snowboarders
Behavioristic
Usuage/volume, benefits, loyalty, price sensitivity
Ex: sky miles afsdf V. Use-Related Segmentation
Usage Rate
Heavy users, medium users, light users, non-users
Awareness Status
Unaware, aware, interested, enthusiastic
Brand Loyalty
None, some, strong af VI. VALS Puts it all together
The value & lifestyles survey
Helps classify customers based on psychological characteristics that are:
Correlated w/ purchasing behavior
Related to key demographics d VII. Firms to Know
Nielsen’s Claritas
Provides market research & target marketing
Offers prism, a
I. Market Segmentation
Process of dividing up a market into smaller groups (called segments)
Groups are designed to have similar wants & needs
Idea is that firms can use their marketing mix to tailor products for the diff groups
II. Targeting
Firms then develop new products (or reposition old ones) to target lucrative groups of consumers
Targeting Strategies
Undifferentiated: entire market is target market; 1 marketing mix (theoretical)
Homogenous market-similar needs
Differentiated: 2 or more segments; more than 1 marketing mix
Concentrated: single market segment; 1 marketing mix (single sites)
df
III. Cluster Analysis
Multivariate statistical analysis technique that identifies customer segments
Researcher measures things like price sensitivity & importance of quality & on-time delivery
Cluster analysis identifies groups (segments) of customers that have similar characteristics
Firms can then plot the segments against their core competencies & target the groups w/ the most sales potential
Dfd
IV. Segmentation Bases
Demographics
Describe characteristics of a pop.
Gender, age, ethnicity, edu., religion,
Iphones, Dr. Pepper 10 (not for women)
Geographic
Region, city size, urban/rural, region
McDonald’s
Psychographics
Personality, motives, lifestyles
Ex: skiers, snowboarders
Behavioristic
Usuage/volume, benefits, loyalty, price sensitivity
Ex: sky miles afsdf V. Use-Related Segmentation
Usage Rate
Heavy users, medium users, light users, non-users
Awareness Status
Unaware, aware, interested, enthusiastic
Brand Loyalty
None, some, strong af VI. VALS Puts it all together
The value & lifestyles survey
Helps classify customers based on psychological characteristics that are:
Correlated w/ purchasing behavior
Related to key demographics d VII. Firms to Know
Nielsen’s Claritas
Provides market research & target marketing
Offers prism, a