Chapter 9 PPT - Chapter 9 STP Growth...

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Chapter 9 S-T-P   Growth Segmenting-Targeting-Positioning Why Segment Markets? Market segmentation Market segmentation      aggregates buyers into groups that: o Have common needs o Will respond similarly to a marketing action Resulting in groups of relatively homogenous buyers:  market segment o Different Market Segments: Because of the existence of different market segments   companies use product   differentiation Strategy using different marketing mix activities such as product features and advertising to help consumers  perceive the product as being different and better than competing products Involves physical or nonphysical features, such as image or price o 3 Segmentation Strategies: One Product and Multiple Market Segments Avoids extra costs of developing/producing additional versions of the product, which entail extremely high  research, engineering, etc. expenses Incremental costs- separate promotional campaign or new channel Ex: Movies, magazines, and books Multiple Products and Multiple Market Segments “Tiffany/Wal-Mart strategies” Ford Segments of one: mass customization Customer relationship management (CRM) - each consumer has unique needs/wants and desires special  tender loving care; Internet ordering made possible Mass customization tailoring goods or services to the tastes of individual customers on a high volume  scale Build B -to-order (BTO) - manufacturing a product only when there is an order from a customer; step before  mass customization The Segmentation Trade-Off: CRM vs. Synergies Key to successful product differentiation/market segmentation strategies: - Balance between satisfying customer wants and achieving organizational synergy Increased customer value achieved through performing organizational functions like  marketing/manufacturing more efficiently - The customer should be better off as a result of increased synergies
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Chapter 9 PPT - Chapter 9 STP Growth...

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