Académique Documents
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What is Marketing What is customer perceived Value What is the Exchange and what is meant by establishing long term exchange relationship What are utilities and how are they provided What is marketing orientation and marketing concept Discuss the marketing management Philosophies What is sales and marketing orientation Discuss 4ps (the marketing elements ) Discuss marketing STP process What is marketing strategy in a nut shell
Assignments
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Each topic shall be prepared by two groups Only one of the topics shall be presented Groups shall also prepare the answers in a written form These presentations and answers shall be used for internal evaluation for the subject Each topic shall carry 5 marks so we shall have 8 to 10 assignments.
Market Segmentation
The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.
Why Segment?
Market segmentation
More precise definition of customers needs and wants More accurate marketing objectives
Market Segments
Market Segmentation
The process of dividing a potential market into distinct subsets of consumers and selecting one or more segments as a target market to be reached with a distinct marketing mix.
Market Segmentation
Market
People or organizations with needs or wants and the ability and willingness to buy
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
Market Segment
Market Segmentation
creaminess
sweetness
Homogeneous Preference
-no natural segments -all buyers have same preference
creaminess
creaminess
Accessibility
Responsiveness
Consumer Markets
STATE OF BEING
STATE OF MIND
Geographic
Demographic Psychographic
Behavioral
Geographic Segmentation
The division of a total potential market into smaller subgroups on the basis of geographic variables (e.g., region, state, or city).
Geographic Variables
Pacific, Mountain, West North Central, West South Central, East North Central, East South Central, South Atlantic, Middle Atlantic, New England
Under 4,999; 5,000-19,999; 20,000-49,999 . . . 1,000,000-3,999,999; 4,000,000 and over
Climate
Northern, southern
Demographic Variables
Age Gender Occupation Family size Education Nationality Religion Income Ethnicity
Marital Status
Sociocultural Segmentation
Phases a family goes through in their formation, growth, and final dissolution
Explicit basis: marital status, family status Implicit basis: age, income, employment
Psychographic Variables
Lifestyle
Hobbies TV viewing habits Social activities Club memberships Vacation preferences
Personality
Ambitious
Behavioral Variables
Occasions Benefits User status Usage rate
Regular occasion, special occasion
WHITENESS FRESHNESS GOOD TASTING PRODUCT APPEARANCE DECAY PREVENTION GUMS PROTECTION TEETH SENSITIVITY ECONOMY
Use-Related Segmentation
Rate of Usage
Awareness Status
Brand Loyalty
Usage-Situation Segmentation
Whenever our daughter, Jamie, gets a raise, we always take her out to dinner. When Im away on business, I try to stay at a suites hotel. I always buy my wife flowers on Valentines Day.
Benefit Segmentation
Segmenting on the basis of the most important and meaningful benefit Prudential - financial security Iomega - data protection Wheaties - good health Eclipse - fresh breath
Crest
Brands on sale
High autonomy Valueoriented
Submarket 4 (Socializers)
Submarket 5 (Environmentalists)
3-8
Benefits Sought
Consumption Level
14%
9%
MEDIUM PILLOW
M L M
FIRM PILLOW
S M L
1994 Richard D. Irwin, Inc. To accompany MARKETING, 4/E by Berkowitz, Kerin, Hartley, and Rudelius
Look at your segments: Who are they? Who do you want to go after?
Geographics Demographics Psychographics Benefits Sought Usage Rate What segments did you come up with? Do you want to target all, some, or one?
Market Segmentation
SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Geographic Segmentation Region Southwest, Mountain States, Alaska, Hawaii City Size Major metropolitan areas, small cities, towns Density of area Urban, suburban, exurban, rural Climate Temperate, hot, humid, rainy Demographic Segmentation Age Under 11, 12-17, 18-34, 35-49, 50-64, 65-74, 75-99, 100+ Sex Male, female Marital status Single, married, divorced, living together, widowed Income Under $25,000, $25,000-$34,999, $35,000-$49,999, $50,000-$74,999, $75,000-$99,999, $100,000 and over Education Some high school, high school graduate, some college, college graduate, postgraduate Occupation Professional, blue-collar, white-collar, agricultural, military
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SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Psychological Segmentation Needs-motivation Shelter, safety, security, affection, sense of self-worth Personality Extroverts, novelty seeker, aggressives, low dogmatics Perception Low-risk, moderate-risk, high-risk Learning-involvement Low-involvement, high-involvement Attitudes Positive attitude, negative attitude Psychographic (Lifestyle) Segmentation Economy-minded, outdoors enthusiasts, status seekers
Sociocultural Segmentation Cultures Religion Subcultures (Race/ethnic) Social class Family life cycle
American, Italian, Chinese, Mexican, French, Pakistani Catholic, Protestant, Jewish, Moslem, other African-American, Caucasian, Asian, Hispanic Lower, middle, upper Bachelors, young married, full nesters, empty nesters
SEGMENTATION BASE SELECTED SEGMENTATION VARIABLES Use-Related Segmentation Usage rate Heavy users, medium users, light users, non users Awareness status Unaware, aware, interested, enthusiastic Brand loyalty None, some, strong Use-Situation Segmentation Time Leisure, work, rush, morning, night Objective Personal, gift, snack, fun, achievement Location Home, work, friends home, in-store Person Self, family members, friends, boss, peers Benefit Segmentation Convenience, social acceptance, long lasting, economy, value-for-the-money Hybrid Segmentation Demographic/ Combination of demographic and psychographic profiles Psychographics of consumer segments profiles Geodemographics Money and Brains, Black Enterprise, Old Yankee Rows, Downtown Dixie-Style SRI VALSTM Actualizer, fulfilled, believer, achiever, striver, experiencer, maker, struggler