Professional Documents
Culture Documents
to accompany
Chapter 5
1. TARGET MARKETING STRATEGIES
2. CRM
Explain the different dimensions (bases) marketers use to segment consumer and business-to-business markets
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
The creation of many consumer groups due to a diversify of distinct needs and wants in modern society
a) Dividing the total market into different segments on the basis of customer characteristics, b) selecting one or more segments, and c) then developing products to meet the needs of those specific segments
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Step 1: Segmentation
Segmentation
The process of dividing a larger market into smaller pieces based on one or more meaningful, shared characteristics
Segmentation variables
Dimensions that divide the total market into fairly homogeneous groups, with each group having different needs and preferences
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Psychographics
Behaviour
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Geodemography
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Family structure
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Age Groups
Age
Generation Those born Y between 1977 and 1994 Generation Those born X between 1965 and 1976 Baby boomers Those born between 1946 and 1964 Difficult to reach through traditional marketing efforts I dont like to be told whats trendy. I can make up my own mind. A big market, approaching retirement, with money to spend
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Activities
Interests
Opinions
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Usage situations
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Firm size
Number of facilities
2. User or non-user
Domestic or multinational
Type of business
3. Technology used
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Class Activity Set out below is a list of geographic, demographic and psychographic segmentation variables and Australian newspaper or magazine titles. Match the letter to the right number.
A State of Western Australia 1 2 Male 3 C D E F Female 4 Country town 5 Lifestyle 6 Child The West Australian Newspaper Womans Day Magazine Geralton Gazette Newspaper Home and Garden Magazine The Phantom Comic Wheels Magazine
Step 2: Targeting
Target market: The market segment/s where a firm focuses its marketing plan and efforts Not selected Not selected
1. Evaluate the
attractiveness of each potential segment
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Demographics
Age, income?
Media habits
Buying behaviour
Heavy users?
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
3. Concentrated Marketing
4. Customised Marketing
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Concentrated marketing
Pursuing ONE segment only
Customised marketing
Tailoring offerings to individual consumers
Differentiated
Concentrated
Customised
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Step 3: Positioning
Positioning means developing a marketing strategy aimed at influencing how a particular market segment perceives a product in comparison to the competition Or Repositioning: changing a products position in response to marketplace changes. Eg, Volvo, red meat.
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Perceptual Maps
Used to map a picture of how brands are perceived and located in consumers minds
Uses key purchase characteristics (attributes) as the basis of the maps (Eg. price, level of service) Typically uses information from a consumer survey
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Figure 5.4
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition
Characteristics of CRM
(What it does and what it hopes to achieve) Share of Customer Seek to increase the % of an individuals purchases of a particular brand Seek to maximise the expected profit from a particular customer
Seek to maximise the financial value of a customer relationship Far more efforts targeted at high-value customers
Copyright 2011 Pearson Australia (a division of Pearson Australia Group Pty Ltd) 9781442525207/Solomon/Marketing/2nd edition