Segmentation, Targeting, & Positioning (chap. 8)

-market segment-homogeneous group w/ similar needs/wants/values/buying behavior
-segmentation-division of a market into homogeneous groups w/ similar needs/wants
-target marketing-selection of specific homogeneous groups/segments of potential cust. for emphasis
-positioning-creating an image/perception in the minds of consumers about the organ. or its products relative to the competition

process
-segmentation (select variables to divide the market into homogenous groups called segments; profile each segment to determine potential)-identifying and understanding the characteristics of potential cust.
-target marketing (determine the criteria for selecting target segments; select the target segment strategy)-selecting cust. to serve and focusing resources to serve them
-positioning (determine the criteria used by cust. w/i the target segment to form impressions about competitors; determine the image you want to have in the mind of cust., relative to competitors in each target segment)-establishing how cust. will view your organ. relative to competitors; gain a positive image

-vs. mass marketing-not useful to mass market anymore; need to segment specific markets and then focus on selling those products
-vs. product differentiation (marketing strategy with which companies attempt to make their products appear unique relative to the competition)

Categories don't change (men and women); variables do change (gender of a person)
-geographic segmentation (city, climate, zip code)
-demographic segmentation (gender, age, occupation, etc.)
-diversity segmentation (religion, race, social class)
-psychographic segmentation (lifestyle, personality, etc.)
-behavioristic segmentation (readiness, loyalty, etc.)
-benefit sought (do they want delivery, service, price, etc.)

-take down segmentation (method that starts with a set of variables and assigns all consumers to one of them)
-build up segmentation (method that starts with a single potential cust. characteristics and adds a segment for each new characteristic found in the other)

Market segment profile shows 1) # of current/potential buyers 2) potential # of products these buyers purchase 3) amount of rev the segment provides and 4) expected growth rate

look at:
-size and growth (bigger is not always better, more competition)
-competitive factors (less the better)
-cost/efficiency factors
-segment leadership qualities
-compatibility factors

-undifferentiated marketing-treats all customers the same; look for desires common to everyone and designs products to appeal (successful if you keep prices low and alternatives not avail.)
-differentiated marketing-serves each segment with marketing mix elements matched specifically to its desires and expectations (adv. is that needs and wants are better satisfied for each targeted segment; disadv. is may cost more)
-concentrated marketing-focusing the organ. marketing mix on one or two segments (works well for new companies or companies entering new areas of the world)
-nice marketing-very small market that most companies ignore because they do not see opportunity (micromarketing-marketing to one customer)
-mass customization-most important (Nike shoes)

-product position-characteristics that consumers associate with a brand (snickers gives you energy, milky way is comforting, etc.)
-positioning map-diagram of how consumers in a segment perceive specific brand elements they find important

See notes

-benefit (fisher price toys positioned as safe/educational)
-price/quality (wal-mart positioned as lowest prices, others could have higher price=higher quality)
-time of use/application (gatorade is used when exercising)
-product user/spokesperson (jared for subway)
-direct comparison (phone company embarrassing the others)
-product class/category
-country of origin

Attracting new market (naturalizer is a shoe store geared towards older women, but now the average age is much younger)