Post on 15-Jan-2016
Developing Lists and Discovering Markets
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter 3
Please Note:
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Opening Vignette
NextMark
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Lists Viewed as Market Segments
Lists identify prospects & current customers who are likely to respond to an offer
Different types of lists: mailing, telephone, email, magazine, newspaper
Lists are a perishable commodity
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
THREE TYPES OF LISTS HOUSE LISTS RESPONSE LISTS COMPILED LISTS
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
The List Industry List users List owners List managers List compilers List brokers Service bureaus
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
ListManager
ListOwner
ListBroker
ListUsers
ServiceBureau
ListCompiler
THE LIST INDUSTRY
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Evaluation of Lists Measurement of Results
Key Codes on promotional pieces; Different toll-free numbers; Hotline names identified & tracked
Response differences attributable to timing
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Nature of Market Segmentation Market segmentation is a
marketing plan devised to attract and meet the needs of a specific sub-market.
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product Differentiation Product Differentiation is a
strategy which attempts to make a clear distinction between products serving the same market segment. Is an alternative to price competition Can distinguish a product from that of
competitors
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Product Positioning Product Positioning is a
marketing strategy that enables marketers to understand how each consumer perceives a company’s product or service based on important attributes
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Ways to Position Products: Product quality Product size Product color Distribution method Time of day Price
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Segmenting Business Markets A common means of industrial
market segmentation is through the Standard Industrial Classification (SIC) coding system.
The SIC codes serve as a basis for statistical data, used by government, trade associations, and business enterprises. Copyright© 2010 Pearson Education,
Inc. Publishing as Prentice Hall
NAICS The North American Industry
Classification System (NAICS) has replaced the SIC system.
The NAICS has several improvements over the SIC system.
See Figure 3-5 for a comparison of SIC Codes and NAICS Codes.
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Bases For Market Segmentation Marketers use five distinct
indicators for segmenting markets. These indicators are also known as “bases” for segmenting markets.
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
The Bases For Market Segmentation Geographic Demographic Social Psychological Behavioral
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Geographic Segmentation Neighborhood subdivisions, census divisions,
Federal Reserve districts, states, countries, trading areas, cities, towns, census tracts, neighborhoods, and even city blocks.
There are also numerical codes: ZIP codes, telephone area codes, computer “match” codes, territory and route numbers.
Global Positioning System Geographic Information Systems
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Demographic Segmentation Statistics that describe the
consumer population must be Identifiable Measurable
Examples: age, gender, income, marital status, occupation, education level, etc.
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Social Factor Segmentation Social factors demonstrate the
influence others have on our behaviors
Beer & Bowling Golf & Martinis
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Psychographic Segmentation Lifestyles Habits Attitudes Beliefs Value systems
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Behavioral Segmentation Specific types of products and
services consumers have purchased Time the transaction took place Method or location of their purchases Method of payment they choose “Cookies” placed on their computers
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Using Multiple Segmentation Bases – Claritas PRIZM Example
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Zip Code Areas as Market Segments “Birds of a feather flock together!”
There are 3 criteria used to establish the Zip Code—hub city; 40-75 post offices; 2-3 hours normal drive time.
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Zip Code Areas Figure 3-12 shows Zip Code digit
designations for a five-digit Zip Code.
Nine-digit Zip Codes are very popular.
Wide availability of statistical data for Zip Code areas.
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
Case Study
Lillian Vernon
Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall