Lecture 8 – STP Flashcards
Segmentation
= dividing the market into groups
Market
= set of actors who interact to exchange goods, services, reputation & information + the activities that form the basis for the interaction
actors in the market
- consumers
- competing firms
- retailers
- regulators
why is it difficult to define a mkt
Implies:
1. making choices
2. assumptions
mass marketing
undifferentiated, one-for-all strategy, simple & efficient for the supply side
Claritas Prizm systems
= set of geodemographic segments for the US
cluster analysis
= you spot trends / patterns among replies given by people and you identify groups of participants based on that
principles for creating effective segments
- homogeneous within
- heterogeneous between
- mutually exclusive
- collectively exhaustive
- measurable
- large enough
- stable
targeting
= selecting groups within the market
how can you target?
- cost-benefit consideration
- targeting strategies
3 targeting strategies
- niche marketing
- segment specialisation
- multi-segment
goal of targeting
- reach MAX consumers within the segment
- reach MIN consumers outside the segment
Types of bad consumers
- slow deciders
- high customer service users
- give reputation effects
How can the firm reduce the likelihood to have these customers
- selective communication of offers & promotions
- limiting access
- pricing
- positioning
positioning
= create a UNIQUE value proposition to accomodate the selected groups
