marketing 300

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marketing 300

• discussion section

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announcements?
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discussion question
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group policy
Anyone still need to find a group?
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micro-macro dilemma
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personal benefits vs. social costs
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personal benefits vs. social costs
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personal benefits vs. social costs
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personal benefits vs. social costs
trash mass twice the size of TEXAS!
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personal benefits vs. social costs
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personal benefits vs. social costs
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personal benefits vs. social costs
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personal benefits vs. social costs
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question
Why does Progressive insurance offer customers a
price quote for Progressive and for its
competitors?
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question
(hint think about the purpose of the 4 Ps)
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Segmentation
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question
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question
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question
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Segmentation

• Different people have different needs and
  different uses for products within a category.
• As a business, its important to know who might
  be interested in your product/service and why.
• Why?

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What is a segment?

• Segments/Submarkets
• A relatively homogeneous group of customers who
  will respond similarly to a marketing mix.
• Segments are based around NEED.

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discussion question

• Consider the student market for off-campus
  apartments in your city. Identify some segments
  that have different needs and determining
  dimensions. Then evaluate how well the needs in
  these market segments are being met in your
  geographic area. Is there an obvious
  breakthrough opportunity waiting for someone?

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discussion question

• Need
• Qualifying dimensions
• minimum requirements without these, a consumer
  is not interested (I ABSOLUTELY NEED THIS!)
• ex. a roof. If a house doesnt have a roof, you
  probably wont consider living there.
• Determining dimensions
• qualities that consumers ultimately choose on
  once they have a qualifying set (THIS WOULD BE
  NICE TO HAVE, BUT I DONT NEED IT)
• ex. I choose this house from the ones I liked
  because it has off-street parking

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discussion question

• Consider the student market for off-campus
  apartments in your city. Identify some segments
  that have different needs and determining
  dimensions. Then evaluate how well the needs in
  these market segments are being met in your
  geographic area. Is there an obvious
  breakthrough opportunity waiting for someone?

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discussion question

• Talk with your group about your ideas for a few
  minutes. Come up with three distinct segments
  with qualifying dimensions and a breakthrough
  opportunity.

WARNING!Think about students in terms of all
relevant segmenting dimensions (NEEDS), not only
in terms of their age or year. The latter will
lead you down the wrong path.
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discussion question
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discussion question

• Ready?

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discussion question
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discussion question
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whats wrong with this?
Grad Students
Sophomores and Juniors
Seniors
MADISON HOUSING SEGMENTS
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are all students the same?
we know that not everyone wants the same thing,
even if they are in the same demographic
Seniors
People who want quiet
Budget conscious
People who want to party 24/7
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whats wrong with this?

• Some seniors might want quiet, others might be
  looking for proximity to bars, others might want
  pets. These groups do not necessarily overlap.
• Seniors also leaves out non-seniors who might
  be looking for quiet, proximity to bars, etc.

People who want quiet
Budget conscious
People who want to party 24/7
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are all students the same?
by making seniors a segment, you are implying
that all students want the same thing
Clones
Seniors
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this is the right way
Overall Market
Quiet Seekers
Budget conscious
Partiers
this is better because it divides overall market
by needs, not by demographics
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discussion question

• Hey wait a minute! How come you said that
  seniors isnt a segment but families is?

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discussion question

• This isnt an exact science. Use your intuition.
• Probably most families are looking for similar
  things students probably arent.
• Homogeneous within (people within a segment very
  similar)
• Heterogeneous between (people in different
  segments are not very similar)

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discussion question

• Warning You will have the irrepressible urge to
  segment by demographics. Dont do it!
• Its okay to use demographics (ex. age, gender,
  occupation) to help you segment, but dont rely
  on them.

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discussion question

• Segment based on

NEED
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discussion question

• Are all the needs you mentioned being met here in
  Madison?
• What is a market that you think is out there that
  is not currently being met?

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quiz

• Reminder
• The quizzes are timed. You have 4 minutes to
  submit them. After that, the system will not
  accept them!
• You have 2 attempts to complete the quiz. The
  system will take the higher score.

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quiz

• Lipton has increased sales by developing ads that
  encourage its current customers to drink Lipton
  tea instead of coffee at morning "coffee breaks."
  This effort focuses on
• A. Market development
• B. Diversification
• C. Product development
• D. Market penetration
• E. None of the above

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quiz
What does market mean?
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quiz

• The president of a company that produces
  cardboard boxes is concerned about the large
  number of competitors with extra capacity. As he
  put it, "our best shot is in the hands of our
  sales manager--she makes all of our marketing
  decisions and is creative enough to figure out
  how to sell more boxes." It seems that this
  company is run as if it were in the
• Production era
• Marketing company era
• Simple trade era
• Sales era
• Marketing department era

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quiz

• A digital camera, a computer video-cam, and a
  computer scanner might compete in the same
• Single target market
• Generic market
• Multiple target market
• Combined target market
• Product-market

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quiz

• Generic market
• ex. things that transfer digital images to your
  computer
• Product-market
• ex. digital cameras
• C. Single target market
• ex. waterproof digital camera
• D. Multiple target market
• ex. one camera targeted at professionals and
  amateurs (with different marketing mixes)
• E. Combined target market
• ex. one camera targeted at professionals and
  amateurs (same marketing mixes)

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other questions?
?
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Have a great weekend