Chapter 9: Marketing Segmentation, Targeting, and Positioning

1. One product and multiple market segments

2. Multiple products and multiple market segments

3. Segments of one “mass customization”

What are the three segmentation strategies?

Harry Potter Book Series may be targeted to teens but others read them too

What is an example of (One products and multiple segment markets)?

soccer moms typically drive minivan but others drive a minivan the there's other cars 

What is an example of (Multiple products and multiple market segments)?

Build-to-order- everyone gets what they want at chipotle you build your own order

What is an example of (Segments of one “mass customization”)?

• buying a Winnie the pooh product

  • From Tiffany it would be fine China Winnie the pooh

  • Walmart version would be made out of plastic and less quality

What is an example of the “tiffany/Walmart” strategy?

Tiffany/Walmart strategy

• Capture high and and the low end of the market

• Companies develop product for both ends

  • Does NOT have to be with the same company but a lot of times it is

Cannibalization

developing new mechanisms to take customers away from older products and give them something new to shop from

Ann tailor developed Loft which is her store but clothes at a lower price

What is an example of cannibalization?

Geographic Segmentation

 based on where prospective customers live or work (region or city)

Demographic Segmentation

based on some objective physical (gender, race,), measurable (age, income), or other classification attribute (birth era, occupation)

we need to realize that we are linking the needs to the marketing mix

What do we need to know from this image?

Two brands of jeans work for the same parent company:

Old Navy: captures the lower end of the market

Gap: captures the high end of the market

What is an example of the “Tiffany/Walmart” Strategy?

Market Segmentation:

involves aggregating prospective buyers into groups or segments, that (1) have common needs and (2) will respond similarly to a marketing action

Product Differentiation:

 is a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products

Market-product grid:

a framework to relate the market segments of potential buyers to products offered or potential marketing actions

Personas:

are character descriptions of a brands typical customers

Product positioning:

is the place a product occupies in consumers’ minds based on important attributes relative to competitive products

Product repositioning:

involves changing the place product occupies in a consumer’s mind relative to competitive products

Perceptual map:

is a means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm’s own product or brand

MyTwinn makes dolls that look like a photograph of young girls

What is an example of mass customization?

respond similarly to marketing action

Marketing segmentation is aggregating prospective buyers into groups with common needs and will

products offered/potential marketing actions/organization

A market product grid is a framework to relate the market segments of potential buyers to