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Chapter 9 Notes

Chapter 9 Notes - Chapter 9 Notes Identifying Market...

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Chapter 9 Notes Identifying Market Segments and Targets Sneakers New Segments and Strategies Endorsing rappers and hip-hop music stars. Competitive Trends Sign deals with NBA and NFL to be official uniform provider. Segments: o Teenagers comprise of 32% of sales o Women sales growth is higher than men o More than 62% of purchased sneakers cost less than $62 o Running shoes are the number one sellers o Casual styles have a strong fashion component Why Segment Markets? A business firm segments its markets so it can respond more effectively to the wants of groups of potential buyers and thus increase its sales and profits. Not-for-profit organizations also segment the clients they serve to satisfy client needs more effectively while achieving the organization’s goals. What Market Segmentation Means Market Segmentation : sorting potential buyers into groups that have common needs and will respond similarly to a marketing action. o Linking market needs to an organization’s marketing program. o Identify needs (benefits in terms of quality, expense, etc) process of segmenting and targeting markets execute marketing program (a marketing mix in terms of product, price, promotion, place). Market Segments : groups of prospective buyers that result from market segmentation. Product Differentiation : strategy of using different marketing mix activities, such as product features and advertising, to help consumers perceive a product as being different and better than competing products. Segmentation: Linking Needs to Actions Marketing segmentation first stresses the importance of grouping people or organizations in a market according to the similarity of their needs and the benefits they are looking for in making a purchase. Such needs and benefits must be related to specific marketing actions the organization can take. How Reebok’s Segmentation Strategy Developed Using Market-Product Grids Market-Product Grid : framework relating the segments of a market to products or marketing actions of the firm.
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