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Segment_350_Notes_Feb_09

Segment_350_Notes_Feb_09 - Segmentation BRAND TIDE BENEFIT...

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Segmentation
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BRAND BENEFIT MS TIDE “powerful cleanser” 41.0% GAIN “fresh scent” 9.0% CHEER “color expert” 5.0%
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BRAND BENEFIT MS BOLD “fabric softener” 2.9% ERA “stain removal” 2.2% DASH “value brand” 1.8%
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BRAND BENEFIT MS OXYDOL “bleach-whitener” 1.4% DREFT “Borax solution” 1.0% IVORY SNOW “mild cleanser” 0.7%
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Evolution of Segmentation Firms have not always practiced this philosophy (e.g., Coke) Mass marketing Product-variety marketing Target marketing
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Mass Marketing Treat the market as a monolith Offer one product to all consumers Exploit economies of scale
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Product-Variety Marketing Borne out of competition Offer 2 or more modified product versions Different sizes Different containers
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Target Marketing Identify consumer segments Develop unique product & related marketing mix for each segment (P&G) Involves 3 stages = STP
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Segmentation How to divide up markets into meaningful customer groups Identify basis for segmenting the market Develop profiles of resulting segments
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