Launch your PollEV session: Text : UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

3. Quote from “Heinz”: “Many of them have made mistakes in emerging markets….they’ve rushed in with Western package sizes, pricing….Many of them have also been too impatient. They’re ready to walk away too quickly. Those markets require patience…”

4. Hofstede’s Cultural Dimensions Cultural Values

6. Your questions: • Aren’t single-use packets terrible for the environment?

7. Price

8. https://www.planetaid.org/blog/recycling-rates-around-the-world

11. Targeting the Marketplace – Segmentation, Targeting, and Positioning Ref: Text, chapter 9

12. Segmentation, Targeting, Positioning Process

13. Step 2: Segmentation Methods

15. Benefit Segmentation: • It can be a very powerful tool because it is easy to portray a product’s benefits in the firm’s communication strategies

17. Step 2: Segmentation Methods • Behavioral segmentation • This divides customers into groups based on how they usethe product or service • Common measures are occasion and loyalty

18. Step 2: Segmentation Methods • Behavioral segmentation • Occasion segmentation: based on when a product is purchased or consumed(Men’s Wearhouse - suit for work, a prom, or a wedding) • Loyalty segmentation:retaining a firm’s most profitable customers

20. Step 2: Segmentation Methods • Using Multiple Segmentation Methods • a combination of segmentation methods: using demographics and geography to identify and target marketing communications to their customers, then using benefits or lifestyles to design the product and the substance of the marketing message

21. Step 2: Segmentation Methods Example: Geodemographic segmentation: • Logic: “Birds of a feather flock together”. Consumers in the same neighborhood tend to buy the same types of cars, appliances, apparel, and shop at the same types of retailers • This segmentation scheme uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers • PRIZM (www.mybestsegments.com ), ESRI’s Tapestry (www.esri.com)

24. Step 2: Segmentation Methods Example: Geodemographic segmentation: • Logic: “Birds of a feather flock together”. Consumers in the same neighborhood tend to buy the same types of cars, appliances, apparel, and shop at the same types of retailers • This segmentation scheme uses a combination of geographic, demographic, and lifestyle characteristics to classify consumers • PRIZM (www.mybestsegments.com ), ESRI’s Tapestry (www.esri.com)

25. Step 3: Evaluate Segment Attractiveness • Criteria: • Identifiable:identify who is within their market in order to be able to design products to meet their needs. • Substantial:the firm must measure the size of the potential target market. • Reachable:the market must be reachable through persuasive communications and distribution networks.

26. Step 3: Evaluate Segment Attractiveness • Responsive: customers in the segment must react similarly and positively to the firm’s offering. • Profitable: what is the potential profitability of each segment, both current and future? Key factors include market growth, market competitiveness, and market access.

27. Step 4. Targeting Strategies: • Undifferentiated • Differentiated • Concentrated • Micromarketing

28. Step 4: Select Target Market • Undifferentiated Targeting Strategy, or Mass Marketing • When everyone might be considered a potential user of this product, a firm uses an undifferentiated targeting strategy • Not a common strategy. It is used for many basic commodities such as salt or sugar or gasoline.

29. Step 4: Select Target Market • Differentiated Targeting Strategy • In this, firms target multiple market segments with a different offering for each. Example: Condé Nast magazines • helps them obtain a bigger share of the market. • helps them to spread risk and diversify the business

30. Conde Nast magazines

31. Step 4: Select Target Market • Concentrated Targeting Strategy • This is when a firm selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs • This strategy is useful for entrepreneurial start-up ventures - allows them to employ their limited resources more efficiently

32. Crocs

34. Step 4: Select Target Market • Micromarketing • When a firm tailors a product to suit an individual customer’s wants or needs, it is undertaking an extreme form of segmentation called micromarketing or one-to-one marketing • The Internet facilitates this segmentation strategy.

37. Targeting Strategies: • Undifferentiated • Differentiated • Concentrated • Micromarketing

38. Freestyle Coke • Dispenser • Touch-screen soda fountain • Features 165 different Coke products & custom flavors

40. Step 4: Select Target Market • Micromarketing • When a firm tailors a product to suit an individual customer’s wants or needs, it is undertaking an extreme form of segmentation called micromarketing or one-to-one marketing

41. Step 5: Develop Positioning Strategy • Market positioning involves a process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

42. Positioning: carving a unique space for your brand in consumers’ minds • From chapter 2 notes:

43. Positioning map

44. Circles for a Successful Value Proposition:No Overlap with Competition

45. Circles for a Successful Value Proposition Determining the Value Proposition

46. Circles for a Successful Value Proposition Determining the Value Proposition

48. Step 5: Develop Positioning Strategy • Value proposition: The unique VALUE that a product provides to its customers • (Value does not necessarily mean low priced though)

50. Product attributes: another common positioning strategy focuses on the product attributes that are most important to the target market • Symbols: a well-known symbol can also be used as a positioning tool.