What We Will Discuss Today

1
What We Will Discuss Today

• Recap of Previous Session
• Video
• Segmentation
• Review and Background
• Impact on Gift Giving
• Bases of Segmentation
• Criteria For Segmentation
• Targeting
• Evaluating Market Segments
• Patterns of Selection and Strategies
• Positioning
• Quiz

2
Background on STP

• Mass Marketing
• Product Variety Marketing
• Target Marketing
• Relationship Marketing

3
STEP 2 Targeting

• Market Targeting Process of evaluating each
  market segments attractiveness and selecting one
  or more of the market segments to enter.

4
STEP 3 Positioning

• Market Positioning Process of formulating a
  competitive positioning for a product and a
  detailed marketing mix.
• Goal of Positioning The product should occupy
• a clear, distinctive and desirable place
  relative
• to competing products in the minds of
  consumers.

Reputation
CSUN
Quality
OTHER CSUs
5
The Gift Giving Market 1A Benefits Segmentation

• 4 Stages of a Relationship

6
The Gift Giving Market 2A Benefits Segmentation

• Characteristics

7
The Gift Giving Market 3A Benefits Segmentation

• Product Differentiation

8
Bases for Segmentation

• Geographic
• Demographic
• Psychographic
• Social class
• Lifestyle
• Personality
• Behavioral
• Occasions
• Benefits sought
• Loyalty

9
Criteria for Segmentation

• Measurability - degree to which the size and
  purchasing power of a segment can be measured
• Accessibility - degree to which markets can be
  effectively reached and served.
• Substantiality -degree to which segments are
  large and profitable enough.
• Actionability -degree to which effective programs
  can be formulated for attracting and serving
  segments
• Collectively Exhaustive and Mutually Exclusive

10
Market Targeting (1) Evaluating Segments

• 3 Cs
• Consumers
• Size
• Growth potential
• Competitive situation
• Nature of competition
• Substitutes
• Power of suppliers and buyers
• Company
• objectives
• resources

11
Market Targeting (2) Selecting Segments

• Undifferentiated
• Focus on what is common among consumers
• Mass marketing
• Differentiated
• Target several market segments
• Develop separate offers for each
• Concentrated
• Focus on large share of some market

12
Factors Affecting Targeting Strategy

• Resources
• Variability (Product and Market)
• Competitors Strategies

13
Patterns of Target Market Selection 1

• Single-Segment Concentration - niche (VW)
• Product Specialization - 1 product, different
  markets
• Market Specialization - 1 market, different
  products
• Selective Specialization - different segments
  each matching the firms competitive
  advantages
• Full Coverage - all products, all markets

14
Patterns of Target Market Selection 2
M1 M2 M3
M1 M2 M3
M1 M2 M3
P1 P2 P3
P1 P2 P3
P1 P2 P3
M1 M2 M3
M1 M2 M3
P Product M Market
P1 P2 P3
P1 P2 P3
15
A Marketing Strategy Plan
Airlines
Railroads
Truckers
B
Large Computers Workstations PCs
B
B
A
A
A
C
16
Positioning 4 Ps

• Product
• Price
• Place
• Promotion

17
What We Discussed Today
I wish hed let us take the quiz.

• Recap of Previous Session
• Video
• Segmentation
• Review and Background
• Impact on Gift Giving
• Bases of Segmentation
• Criteria For Segmentation
• Targeting
• Evaluating Market Segments
• Patterns of Selection and Strategies
• Positioning
• Quiz