Professional Documents
Culture Documents
IDENTIFYING
MARKET
SEGMENTS
AND TARGETS
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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
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SNEAKERS MARKETING WARS: JAY-Z,
YAO MING, AND A “SWOOSHLESS”
NIKE LINE FOR WAL-MART
• How Do You
Stand Out on
“Sneaker Walls”?
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SNEAKERS MARKETING WARS: JAY-Z,
YAO MING, AND A “SWOOSHLESS”
NIKE LINE FOR WAL-MART
• New Segments
and Strategies
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SNEAKERS MARKETING WARS: JAY-Z,
YAO MING, AND A “SWOOSHLESS”
NIKE LINE FOR WAL-MART
• Competitive Trends
Age Segments
Gender Segments
Price Segments
Sport Segments
Lifestyle Segments
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WHY SEGMENT MARKETS?
Market Segmentation
Market Segments
Product Differentiation
Segmentation: Linking Needs to Actions
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FIGURE 9-1 Market segmentation—linking
market needs to an organization’s marketing
program
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WHY SEGMENT MARKETS?
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FIGURE 9-2 Market-product grid showing
how different Reebok shoes reach segments
of customers with different needs
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WHY SEGMENT MARKETS?
• Build-to-Order (BTO)
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Street & Smith’s Baseball
What product/market segmentation strategy?
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Harry Potter
What product/market segmentation strategy?
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WHY SEGMENT MARKETS?
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Ann Taylor & Ann Taylor Loft
What is the danger of a two-segment strategy?
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Concept Check
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Concept Check
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FIGURE 9-3 The five key steps in
segmenting and targeting markets link
market needs of customers to the
organization’s marketing program
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STEPS IN SEGMENTING AND
TARGETING MARKETS
Demographic: Household
Psychographic: Lifestyle
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STEPS IN SEGMENTING AND
TARGETING MARKETS
• Frequency Marketing
• 80/20 Rule
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FIGURE 9-B Segmentation variables and
breakdowns for U.S. consumer markets
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Mac-Gray MicroFridge
What benefits sought and
what consumer market segments targeted?
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FIGURE 9-C Patronage of fast-food
restaurants by adults 18 years and older:
Simmons Market Research Bureau
NCS/NHCS Spring 2004 Adult Full-Year
Choices System Crosstabulation Report
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FIGURE 9-4 Comparison of various kinds
of users and nonusers for Wendy’s,
Burger King, and McDonald’s fast-food
restaurants
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STEPS IN SEGMENTING AND
TARGETING MARKETS
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STEPS IN SEGMENTING AND
TARGETING MARKETS
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FIGURE 9-D Segmentation variables and
breakdowns for U.S. organizational markets
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Xerox WorkCenter C2424
What variables are used to
segment organizational markets?
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Concept Check
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Concept Check
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STEPS IN SEGMENTING AND
TARGETING MARKETS
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FIGURE 9-5 Selecting a target market for
your Wendy’s fast-food restaurant next to an
urban university (target market is shaded)
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STEPS IN SEGMENTING AND
TARGETING MARKETS
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STEPS IN SEGMENTING AND
TARGETING MARKETS
• Between-Meal Snacks
• Dinner to Night Students
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Wendy’s
How can Wendy’s target different market
segments with different advertising programs?
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FIGURE 9-6 Advertising actions to reach
specific student segments
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STEPS IN SEGMENTING AND
TARGETING MARKETS
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Apple Computer (1977–Today)
How have Apple’s product lines and market
segmentation strategies changed?
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STEPS IN SEGMENTING AND
TARGETING MARKETS
Marketing Synergies
Product Synergies
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FIGURE 9-E Benefits (+) and drawbacks (-)
of a firm’s market-product strategies
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Concept Check
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Concept Check
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Concept Check
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Chocolate Milk
How can dairies put more “zip” into sales?
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FIGURE 9-7 Your challenge as a marketing
manager: Try to position chocolate milk to
make it more appealing to adults
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POSITIONING THE PRODUCT
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FIGURE 9-8 A perceptual map to suggest a
strategy for positioning chocolate milk to
reach adults
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Concept Check
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Concept Check
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Going Online
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Going Online
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VIDEO CASE 9
NOKIA: A PHONE
FOR EVERY SEGMENT
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VIDEO CASE 9
Nokia
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VIDEO CASE 9
Nokia
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VIDEO CASE 9
Nokia
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VIDEO CASE 9
Nokia
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SUPPLEMENTAL
LECTURE NOTE 9-1
MARKET SEGMENTATION IN
PRACTICE: WHAT KIND OF
PILLOW DO YOU NEED?
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FIGURE 9-A Market-product grid showing
the size of markets for pillows for three
different segments of sleepers
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SUPPLEMENTAL
LECTURE NOTE 9-2
MARKET-PRODUCT
SYNERGIES
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FIGURE 9-F Market-product grid of
alternative strategies for a lawnmower
manufacturer
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IN-CLASS ACTIVITY 9-1
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U.S. Census 2000 Promotional Video
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Census 2000 Short Form
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American Community Survey Video
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American Community Survey Form
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IN-CLASS ACTIVITY 9-2
PRODUCT CATEGORIZATION
TO IDENTIFY
PRODCUT GROUPS
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IN-CLASS ACTIVITY 9-3
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3M Post-it® Notes TV ad
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3M Post-it® Flag Highlighter Invention
+ =
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3M Post-it® Flag Highlighter
Colors and Packages
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3M Post-it® Flag Highlighter
Front and Back of Package
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Market Segmentation
Market
Market segmentation
segmentation involves
involves
aggregating
aggregating prospective
prospective buyers
buyers into
into
groups
groups that
that (1)
(1) have
have common
common needsneeds and
and
(2)
(2) will
will respond
respond similarly
similarly to
to aa marketing
marketing
action.
action.
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Market Segments
Market
Market segments
segments areare the
the relatively
relatively
homogeneous
homogeneous groups
groups ofof prospective
prospective
buyers
buyers that
that result
result from
from the
the market
market
segmentation
segmentation process.
process.
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Product Differentiation
Product
Product differentiation
differentiation is is aa strategy
strategy that
that
involves
involves aa firm’s
firm’s using
using different
different
marketing
marketing mix
mix activities
activities to
to help
help
consumers
consumers perceive
perceive the
the product
product as as being
being
different
different and
and better
better than
than competing
competing
products.
products.
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Market-Product Grid
A
A market-product
market-product grid grid is
is aa framework
framework
to
to relate
relate the
the market
market segments
segments of of potential
potential
buyers
buyers toto products
products offered
offered oror potential
potential
marketing
marketing actions
actions by
by the
the firm.
firm.
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Synergy
Synergy
Synergy isis the
the increased
increased customer
customer value
value
achieved
achieved through
through performing
performing
organizational
organizational functions
functions more
more efficiently.
efficiently.
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Usage Rate
Usage
Usage rate
rate isis the
the quantity
quantity consumed
consumed or or
patronage
patronage (store
(store visits)
visits) during
during aa specific
specific
period
period of
of time.
time.
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80/20 Rule
The
The 80/20
80/20 rule
rule isis aa concept
concept that
that suggests
suggests
80
80 percent
percent of
of aa firm’s
firm’s sales
sales are
are obtained
obtained
from
from 20
20 percent
percent of of its
its customers.
customers.
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Product Positioning
Product
Product positioning
positioning refers
refers to
to the
the place
place
an
an offering
offering occupies
occupies in
in consumers’
consumers’ minds
minds
on
on important
important attributes
attributes relative
relative to
to
competitive
competitive products.
products.
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Perceptual Map
A
A perceptual
perceptual mapmap isis aa means
means of of
displaying
displaying oror graphing
graphing in in two
two dimensions
dimensions
the
the location
location ofof products
products or or brands
brands inin the
the
minds
minds ofof consumers
consumers to to enable
enable aa manager
manager
to
to see
see how
how consumers
consumers perceive
perceive competing
competing
products
products oror brands
brands relative
relative to to its
its own
own and
and
then
then take
take marketing
marketing actions.
actions.
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