Chapter 9 - Identifying Market Segments and Targets I....

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Identifying Market Segments and Targets I. Sneakers marketing wards a. How do you stand out on “Sneaker Walls”? i. Nike’s “swooshless” stater line ii. The adidas 1: in sole computer iii. Puma and teenagers: targets by fashion, coolness, and low-tech stragegy sold only through hipper stores iv. New balance: older people, “endorsed by no one” b. New segments and strategies c. Competitive trends i. Age segments: teenagers/college aged consumers comprise more than 32 percent of total sales, are the largest segment, and spend more for sneakers than older consumers ii. Gender segments: women: sales growth is higher than men; men: will buy more in total at higher average prices iii. Price segments: more than 62 percent purchased today cost less than $50 iv. Sport segments: 1. Running shoes, 2. Basketball shoes, 3. Cross training shoes v. Lifestyle segments: almost ¾ of all sneakers are purchased for casual; however sales of higher priced performance shoes have risen dramatically II. Why segment markets? a. Respond more effectively to the wants of groups of potential buyers and thus increase its sales and profiles III. What market segmentation means a. Market segmentation: involves aggregating prospective buyers into groups that 1. Have common needs and 2. Will respond similarly to a marketing action b. Market segments: relatively homogeneous groups of prospective buyers that result from the market segmentation process; similar in consumption behavior c. Product differentiation: using different marketing mix activities, such as product features and advertising; physical or nonphysical, i.e. age or price d. Segmentation: linking needs to actions i. Market segmentation is only a means to an end: to lead to tangible
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Chapter 9 - Identifying Market Segments and Targets I....

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