ch 8 - Market Segments & Targets Foundations of...

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Foundations of Marketing Stephen Walls
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Where are we? 5 Cs Customer Competencies Competitors Collaborators Context STP Segmentation Targeting Positioning 4 Ps Product Price Place Promotion
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Today’s basic question Why and How do Companies Segment and Target Markets?
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Agenda Lecture Part 1 Why companies segment How companies segment Degrees of segmentation Dimensions of segmentation Group activity Lecture Part 2 Targeting Positioning Discuss Articles
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Market Segmentation Market Market Segment Market Segmentation People or organizations with needs or wants and the ability and willingness to buy. A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
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Why do companies segment their markets? First, what are segments? Groups of customers who have a) common needs & wants and b) will respond similarly to a marketing action …where “needs” are defined broadly (relative to all of the 4 P’s) So, why segment? You really can not be everything to everyone To address unique needs of unique segments (be relevant!) To focus a company’s decision making and use of limited resources (be practical!) …i.e., to accomplish business objectives (financial and otherwise)
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Why do companies segment their markets? Market segmentation More precise definition of customers needs and wants More accurate marketing objectives Improved resource allocation Better marketing results
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Criteria for Segmentation Substantiality Identifiability and Measurability Accessibility Responsiveness Segment must be large enough to warrant a special marketing mix. Segments must be identifiable and
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ch 8 - Market Segments & Targets Foundations of...

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