Professor McGill

Chapter 4: Market CustomizationIntroduction to Marketing | Spring 2015

01

Key Topics• Gaining focus through segmentation

• Basics of Multifactor, Relevant and Effective segmentation

• Targeting the right segments

• Positioning the product or service

Sample Segmentation

Why Segment?

✤ The marketing objectives of segmentation analysis are:✤ To reduce risk in deciding where, when,

how, and to whom a product, service, or brand will be marketed

✤ To increase marketing efficiency by directing efforts specifically toward the designated segment in a manner consistent with that segment's characteristics

✤ Market segmentation is a two-fold process that includes:✤ Identifying and classifying people into

homogeneous groupings, called segments

✤ Determining which of these segments are viable target markets.

01

Examples of Various Segments

✤ Demographic

✤ Lifestyle

✤ Geographic

01

Multifactor Segmentation

✤ “Drilling Down” to more specific attributes in a target market.

✤ For Example: >Middle-aged married men with children, with limited free time on weekends who want to get in shape.

01

Relevant & Effective Segmenting

✤ Must have these characteristics:

✤ Measurable

✤ Substantial

✤ Accessible

✤ Differentiable

✤ Actionable Keep in Mind: Narrowing too much reduces the number of people that your

product represents value too.

Targeting: Factors to Consider

Targeting Checklist

✤ Number of customers in segment and their spending potential

✤ Your ability to reach them and the cost of doing so

✤ Existing competition

✤ Level of satisfaction with current offerings

✤ Forecasted growth

✤ Potential profitability

✤ Barriers to entry

Positioning

Four Tips

01

Define Yourself

✤ How do you want your customers to describe your brand?

✤ What is the one thing that you want your brand to be known for?

✤ What differentiates your brand from other competing ones?

✤ Have a clear idea of your brand’s vision, purpose, and value proposition.

01

Create a Simple, Coherent, Consistent Brand Voice

✤ Make clear what your product or service is

✤ Get straight to the point

✤ Create a unique personality for people to connect with your product or service

01

Remind customers of About Brand

✤ Don’t assume people will remember your brand and what it stands for (It took Nike 30 years!)

✤ Use subtle methods -logo placement,

01

Develop a Look for your Brand

✤ A professionally designed logo

✤ A pleasing color palette

✤ A limited menu of fonts

✤ Apply the standards you create to everything—your website, business cards, advertising, etc.

Biggest Brand Slogans Click Here