Ch.7 Segment/Target/Position-ing Flashcards
Ppl or Org with
1. Needs/Wants
2. Willingness to buy
3. Ability to buy
Market
Subgroup of ppl/org sharing characteristics of similar needs
Market Segment
Dividing market into meaningful/smaller/identifiable segments, enable marketers to tailor marketing mixes
Market Segmentation
Importance of Market Segmentation
- Identify Cx groups w/ similar needs
- Design Mktg mixes
- Define Mktg objectives & Allocate resources
- Consistent w/ Mktg concept
Bases for Segmenting Markets Geographically
- Region of the World
- Region of the Country
- Market Size
- Market Density
- Climate
4 Basic Criteria for Effective Segmentation
-
Substantiality
large enough market/potential Cx -
Identifiability / Measurability
population & size -
Accessibility
target members reachable -
Responsiveness
use logical criteria/unless a segment responds to mix differently
Bases for Segmenting Consumer Markets
- Geographic
- Demographic
-
Psychographic
personality/motives/lifestyles/geodemographics -
Benefit
benefit seeking e.g. autism -
Usage-Rate
product amt bought/ consumed
___ segmentation
- clusters potential Cx into neighbourhood lifestyle categories
- combines geographic/ demographic/ lifestyle segmt.
Geodemographic
under psychographic segmt.
Demographic Segmentations
- Age
- Gender
- Income
- Ethnic Bkgrd
- Occupation
- Family Life Cycle
Psychographic Segmentation
- Personality
- Motives
- Lifestyles
- GeoDemographic
Example: Canada Goose
Benefit Segmentation
Grouping Cx based on
Benefit they seek
Cx needs/wants
e.g. autism
Usage-Rate Segmentation
Based on Amount of Products
bought/consumed
Users: Heavy/med/former/potential/1st-time/light/irregular
Pareto Principal
80/20 Rule
20% Cx generate 80% demand
Heavy users
Bases for Segmenting Business Markets
-
Company Characteristics
- Geographic location
- Type/Size of Company
- Product Use
- Type of Cx
- Usage Rate
- Buying org.’s structure
- How product is used -
Buying Process
- Purchase Criteria
- Purchase Strategies
a. Satisfiers
b. Optimizers
- Buyer’s Personal Characteristics
Steps in Segmenting a Market
- Select a Market/Product Category
- Choose Segmenting Bases
- Select Segm. Descriptors
i.e. specific segm. variables - Profile & Analyze Segments
- Select Target Markets
- Design/Implement/Maintain Mix