Berkchapter_9.ppt

FIGURE 9-2 Market-product grid showing how different Reebok shoes reach segments of customers with different needs 2006 McGraw-Hill Ryerson Ltd. All rights reserved.

2006 McGraw-Hill Ryerson Ltd. All rights reserved.

Effective Use of Market SegmentationOne Product Multiple Market SegmentsMass CustomizationMultiple Products Multiple Market Segments


When to Segment MarketsOne Product and Multiple Market SegmentsMultiple Products and Multiple Market SegmentsSegments of One: Mass CustomizationSynergy The customer value achieved through performing organizational functions more efficiently.WHY SEGMENT MARKETS?


FIGURE 9-3 The five key steps in segmenting and targeting markets link market needs of customers to the organizations marketing program.STEPS IN SEGMENTING AND TARGETING MARKETS


Step 1: Group Potential Buyers into SegmentsCriteria to Use in Forming the SegmentsPotential for increased profit and ROISimilarity of needs of potential buyers within a segmentDifference of needs of buyers among segmentsFeasibility of a marketing action to reach a segmentSimplicity and cost of assigning potential buyers to segmentsSTEPS IN SEGMENTING AND TARGETING MARKETS


Ways to Segment a Market


FIGURE 9-4 Segmentation variables and breakdowns for Canadian consumer markets


Geographic SegmentationWest49 SkateboardsRegionGlobalMarket SizeMarket DensityClimate


Bases for Demographic SegmentationXbox 360AgeGenderIncomeEthnic backgroundFamily Life Cycle


Bases for Psychographic Segmentation


Lifestyle SegmentationHow time is spentImportance of things around themBeliefsSocioeconomic characteristics40% of all performance athletic shoes sold are for runners.


Geodemographic SegmentationSegmenting potential customers into neighborhood lifestyle categories. Combines geographic, demographic, and lifestyle segmentation.Chinatown in Toronto


Psychographic SegmentationPersonality, Motives, Lifestyle


Benefit SegmentationLow Carb FoodThe process of grouping customers into market segments according to the benefits they seek from the product.


Usage-Rate SegmentationDividing a market by the amount of product bought or consumed.


Ways to Segment Consumer Markets (cont.)Behavioural SegmentationUsage rate80/20 rule

STEPS IN SEGMENTING AND TARGETING MARKETS


The 80/20 PrincipleA principle holding that 20 percent of all customers generate 80 percent of the demand.


Ways to Segment Organizational MarketsGeographical segmentationDemographic segmentationBehavioural segmentationSTEPS IN SEGMENTING AND TARGETING MARKETS

FIGURE 9-5 Dimensions used to segment Canadian organizational markets 2006 McGraw-Hill Ryerson Ltd. All rights reserved.


2006 McGraw-Hill Ryerson Ltd. All rights reserved.Xerox AdWhich variables should be used to segment the organizational market?


Step 2: Group Products to Be Sold into GroupsStep 3: Develop a Market-Product Grid and Estimate Size of MarketsSTEPS IN SEGMENTING AND TARGETING MARKETS


Step 4: Select Target MarketsCriteria to Use in Picking the Target SegmentsMarket sizeExpected growthCompetitive positionCost of reaching the segmentCompatibility with objectives and resourcesChoose the SegmentsSTEPS IN SEGMENTING AND TARGETING MARKETS


Step 5: Take Marketing Actions to Reach Target MarketsYour Wendys Segmentation StrategySTEPS IN SEGMENTING AND TARGETING MARKETS


2006 McGraw-Hill Ryerson Ltd. All rights reserved.How can Wendys target different market segments with different advertising programs?


Step 5: Take Marketing Actions to Reach Target Markets (cont.)Apples Ever-Changing Segmentation StrategySTEPS IN SEGMENTING AND TARGETING MARKETS


Two Approaches to Product PositioningProduct Positioning Using Perceptual MapsPositioning Milk Drinks for ChildrenRepositioning Chocolate Milk for AdultsPOSITIONING THE PRODUCT


PositioningThe place a product, brand, or group of products occupies in consumers minds relative to competing offerings.


RepositioningChanging consumers perceptions of a brand in relation to competing brands.


RepositioningDeclining SalesChanges in Social EnvironmentChangingDemographicsWhy repositionestablished brands?


Perceptual MappingA means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers minds.


Perceptual Map and Positioning Strategy for Levi Strauss Products

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