Tuesday, October 12, 1999

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Tuesday, October 12, 1999

• Segmentation
• Targeting
• Positioning
• Web Site Boeing
• Case Logitech

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Segmentation

• Division of the market into distinct groups of
  buyers gt Goal Unique marketing mixes
• Requirements
• Measurable
• Sustainable
• Accessible
• Substantial
• Differential response

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Possible Bases of Segmentation

• Geographic
• Demograhic
• Psychographic
• Behavioral
• Occasions
• Benefits
• Usage
• Loyalty

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VALS 2 Network
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Targeting Segments

• Market potential
• Strategic factors
• Strength of customers
• Suppliers
• Barriers to entry
• Intensity of rivalry
• Threat of substitution
• Fit
• Strengths/Weaknesses
• Strategic consistency
• Synergy

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Positioning

• Perception of the product by the customer
  vis-a-vis competition so that the product/service
  occupies a distinct and valued place in the
  customers mind.
• Result of an integrated marketing plan.

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Issues in Globalization

• Cultural
• Language
• Demographic
• Can we see segments first and countries later?

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Ethical Issues

• Vulnerable groups
• Interests of society

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Cluster Analysis

• Identifying groups of similar customers with
  substantial intergroup differences
• Key tasks
• Identifying appropriate variables
• Selecting measures of similarity
• Determining the number of factors
• Profiling the resulting clusters

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Doing Cluster Analysis
a distance from member to cluster
center b distance from I to III
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Interpreting Cluster Analysis Results

• No clear statistical answer
• Are clusters spatially distinct?
• Should clusters be joined or separated?
• Are the results meaningful? Can they be
  interpreted?

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Describing Market Segments

• Identify a set of observable variables that
  helps you to understand how to reach and serve
  the needs of selected clusters.
• Use discriminant analysis to identify underlying
  dimensions that maximally differentiate between
  the selected clusters.