Marketing week 8

Uniqueness Perceived by the customer and industrywide is

differentiation

low cost position and industrywide

overall leadership

uniqueness percieved by the customer and particular segment only

FOCUS

Low cost poitstion and particular segment only

Focus

In the Michael Porters generic strategies what is the X and Y axis

x=value proposition

y=targeting

segmentation includes

Identify and develop profiles of segments

common market segmentation variables

• geographic - nations,states, countries, cities, etc

• demographic - age, life-cycle stage, gender, income, ethinicity ,etc

• psychographic - lifestyle, personality, etc

• behavioral - occasions, benefits sought, usage rate et

demographic segmentation involves

• age

• life-cycle stage

• income

• martial status

• education

• family size

• occupation

Psychographic segmentation involves

and people in the same demographic group…..

• lifestyle - healthy eating, urban-active

• personality - outgoing, practical, organized

can have very different psychographic characteristics

behavioral is and involves

is based on consumer knowledge, uses, or responses to a product

• occasions

• benefits sought

• user status

• usage rate

• knowledge

behavioral variables are

• occasions

• benefits sought

• user status

• usage rate

benefit variables: Occasions is when,,,,,list (3)

1. When they get the idea to buy

2. when they make their purchases

3. when they use the purchased items

Each occasion implies a

different set of competitors

behavioral variables: benefits sought and ex

• dividing the market into segments according to the different benefits that consumers seek from the product

EX= Use Bicycles…..the way the product is used

bicycles can be used for commuting, working out, road racing, recreation

Behavioral variable: user status example

• non-users

• potential users

• first time users

• regular users

behavorial variables: usage rate

markets can also be segmented into light, medium, and heavy users

can market segments be defined using multiple variables?

YES

targeting in the st(d)p process is

evaluate the attractiveness of each segment

should companies evaluate market segments before decding which segment to target?

YES

still in the targeting box,,,,,in order to be useful, a market segment must be ,,,,list 5

• differentiable - do they respond differently to different marketing mix ?

• accessible - could we access them with our marketing tools

• measurable - can we figure out how many ppl are in it

• substantial - large and or profitable enough to be worth saving

• actionable - does our company have the resources and ability necessary to target them?

what is the targeting straegy 4 main approaches and it goes from targeting __to targeting__

From targeting broadly to targeting narrowly

• undifferentiated marketing (mass)

• differentiated marketing (segmented)

• concentrated marketing (niche)

• micro marketing (local or individual marketing)