Market Segmentation and Strategic Targeting Flashcards
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Market segmentation defined
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process of dividing a potential market into distinct subsets of customers and selecting 1 or more segments as target markets to be reached with a distinct marketing mix
similiar needs and wants,
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Positioning and Repositioning defined by Jack Trout, vetting a positioning statement, remember the repositioning video clips
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clear onsis stament of what ur product of idea is percieved by your traget market
tartget market, - 4 p’s
frame of reference- competition in industry, exaple less sugar people want to live a healthier lifestyle
points of difference-
reason to believe
vetting-
clairty
credidiblity
uniquness
obtainability
sustainability
3c’s
crisis change and competition
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Repositioning for Change—Xerox example—Jack Trout—
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You Tube video clip: http://www.youtube.com/watch?v=3YaSF2_K9l4
Technology can force you to adapt your brand to changing cicumstances. But you must never lose contact with your basic position. People lose touch with what they are in the mind. You cant predict the future. 20 years and 2 billion dollars on a a machine that cant make a copy. They couldn’t change perception of Xerox.
Repositioning in Crisis—GM Example Jack Trout—
You Tube video clip:
http://www.youtube.com/watch?v=phJZHF1JECI&playnext=1&list=PL319AB589C3A9EFB5&feature=results_video
Gm in 1921. Gm was competing with itself. Never did the ultra high, let the germans in. Half the car market. They decided to make all the cars look the same. They blew the brands. They were all at similar price points making similar cars. No points of difference.
Gm for tomorrow
chevy- America favorite car
buick- quality without paying for status
caddi- leading edge technology
Repositioning the Competition—Jack Trout—
You Tube video clip:
http://www.youtube.com/watch?v=DixFg-reeaw
Repositioning is adjusting perception. To hang a negative perceception on your competition as a set up for a positive perception abuot your company product or whatever. It’s a simple observation the public can verify themselves. Listerine, by scope is hospital breath. Stoli is the Russian vodka
Sheena Iyengar—“How to make choosing easier”, Ted Talk,
You Tube video clip:
http://www.youtube.com/watch?v=1pq5jnM1C-A
Choice overload problem. 348 different kinda of jam. Experiment. 3 % of 24 bought jam. 30% of the 6, because its simplistic.
In the banking example, once again the less choices the more people commit.
Cut- Less is more. CUT.
Concretize-make it vivid. Concequence. People spend 30% more when they use credit card, rather than cash.
Catergories- more vategories, fewer choices
Condition for complexity- low choice to high choice, start off easy and build up
We all want customized experiences and products – but when faced with 700 options, consumers freeze up. With fascinating new research, Sheena Iyengar demonstrates how businesses (and others) can improve the experience of choosing.
Barry Schwartz—Paradox of Choice—Ted Talk , You Tube video clip:
http://www.youtube.com/watch?v=VO6XEQIsCoM
Maximize individual freedom. more choice= More expectation… this is less satisfaction. No pleasant surprise. Secret to happiness is low expectations. Clinical depression is that people are experiences because of high expectations.
Criteria for effective targeting
(1) identifiable
(2) sizeable
(3) stable
(4) accessible
(5) congruent with marketers objectives and resources
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Bases for market segmentation (figure 3.3)
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see image
Consumer rooted segmentation bases (demographic, geodemographic, psychographic, behavioral (usage)
demographic: age, gender, ethnicity, income
geodemographic: hybrid segmentation scheme based on premise that people who live close to one another are likely to have similar financial means, tastes, preferences and lifestyles
psychographic: lifestyles, interests, opinions
behavioral (usage): sending targeting adds based on websites they are interests
Consumer Psychology in a Recession (Professor Quelch Harvard interview)
In a tough economy, companies can succeed if they understand their customers’ evolving consumption patterns and fine-tune their marketing strategies accordingly.
pain but patient
slam on the breaks
new segmentation—slam on the brakes, live for todayers, comfortably well and pained but patient , new product categories—treats, essentials, postponables, expendables
You Tube interview link: http://www.youtube.com/watch?v=XJqcC9d675Q
