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Segmentation, Targeting, and Positioning

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Segmentation, Targeting, and Positioning

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    1. Segmentation, Targeting, and Positioning Chapter 7

    2. 7- 1 Definition Market Segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

    3. 7- 2

    4. 7- 3 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographical segmentation Marketing mixes are customized geographically Demographic segmentation Psychographic segmentation Behavioral segmentation Using multiple segmentation variables

    5. 7- 4 Market Segmentation

    6. 7- 5 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographical segments Demographic segmentation Most popular type Demographics are closely related to needs, wants and usage rates Psychographic segmentation Behavioral segmentation Using multiple segmentation variables

    7. 7- 6 Market Segmentation Age Gender Family size Family life cycle Income Ethnicity

    8. 7- 7 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Lifestyle, social class, and personality-based segmentation Behavioral segmentation Using multiple segmentation variables

    9. 7- 8 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Behavioral segmentation Typically done first Using multiple segmentation variables

    10. 7- 9 Market Segmentation Occasions Benefits User Status User Rates

    11. 7- 10 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segments Demographic segmentation Psychographic segmentation Behavioral segmentation Using multiple segmentation variables

    12. 7- 11 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Demographic segmentation Industry, company size, location Operating variables Technology, usage status, customer capabilities Purchasing approaches Situational factors Urgency, specific application, size of order Personal characteristics Buyer-seller similarity, attitudes toward risk, loyalty

    13. 7- 12 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Geographic segmentation Location or region Economic factors Population income or level of economic development Political and legal factors Type / stability of government, monetary regulations, amount of bureaucracy, etc. Cultural factors Language, religion, values, attitudes, customs, behavioral patterns

    14. 7- 13 Market Segmentation Segmenting Consumer Markets Segmenting Business Markets Segmenting International Markets Requirements for Effective Segmentation Measurable Size, purchasing power, and profile of segment Accessible Can be reached and served Substantial Large and profitable enough to serve Differentiable Respond differently Actionable Effective programs can be developed

    15. 7- 14 Target Marketing Evaluating Market Segments Segment size and growth Segment structural attractiveness Level of competition Substitute products Power of buyers Powerful suppliers Company objectives and resources

    16. 7- 15

    17. 7- 16 Target Marketing Choosing a Target- Marketing Strategy Requires Consideration of: Company resources The degree of product variability Products life-cycle stage Market variability Competitors marketing strategies

    18. 7- 17 Positioning Positioning: The place the product occupies in consumers minds relative to competing products. Typically defined by consumers on the basis of important attributes.

    19. 7- 18 Positioning Choosing a Positioning Strategy: Identifying possible competitive advantages -- many potential sources of differentiation exist: Products Services Channels People Image

    20. 7- 19 Positioning Choosing a Positioning Strategy: Choosing the right competitive advantage How many differences to promote? Unique selling proposition Positioning errors to avoid Which differences to promote?

    21. 7- 20 Positioning Important Superior Preemptive

    22. 7- 21 Positioning Choosing a Positioning Strategy: Communicating and delivering the chosen position Entire marketing mix must support the chosen strategy May require changes to the product, pricing, distribution or promotion.

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