session 10

session 10 - Administration We use BLACKBOARD NOT Katalyst...

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1 Administration We use BLACKBOARD, NOT Katalyst Callaway will due this Wed Black & Decker write-ups: issues Low pass: you need work much harder next time Midterm on Wed next week, in class, with one page of cheat sheet. I will distribute the sheet this Wed Remember to bring your name card
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2 Segmentation bases , con’t. Behavior •Benefits sought •Usage occasion ( e.g. Halloween, Mother’s day) •Usage level ( Light, Medium, and Heavy ) •Buyer readiness ( Unaware, Aware, Informed, interested, desire…) •Brand loyalty ( Hard-core, Split, Shifting, Switcher) •User status ( Non-, Ex-, Regular, Potential, First-time ) •and so on…
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3 Segments by benefits: Toothpaste The worriers (mainly seek decay prevention and other dental health) The sensory and sociable segment (seek brightness of teeth, flavor, and freshness)
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Differentiable: The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs. Operational: Segment membership can be identified. The size, purchasing power, and characteristics of the segments can be measurable. The segments can be effectively reached and served. Substantial : the segment should be large enough to be profitable. Some criteria for effective segmentation
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Separating customers into groups, so as to maximize: Within Group Homogeneity Between Groups Heterogeneity Segmentation base: Geographic variables Demographics Psychographics Behaviors Combinations Summary
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6 Marketing Strategy Segmentation, Targeting and Positioning, con’t Marketing Management Qiang Liu
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7 Agenda Segmentation, targeting, positioning Targeting Positioning
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8 Targeting The process of evaluating segments and selecting one or more segments as the focus of certain marketing mix offerings (4Ps).
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9 “Chain Models” of Segment Value Application: The target market for the XYZ company is “baby boom” adults in the US (i.e., individuals born between 1946 and 1964 comprising approximately 40% of US’s 200 million adult population. ). 80% of baby boomers consume at least one unit/year in the product category and among these the average usage rate is 5 units/year . XYZ currently has a 40% market share in this segment. What is the segment value of baby boomer per year? Number of Customer = Population * Segment Size *Segment Penetration (%) = 200,000,000*0.4*0.8=64,000,000, Net Value per Customer = Usage Rate * Unit Contribution ($)– Customer Costs = 5 * 2 - 0 = 10 Segment Value = Number of Customer * Net Value per Customer =64M *10 = 640 M For XYZ the segment value is : 640*0.4= 256M
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T argeting: Choosing your Target Market(s) Target Market Selection Company “Fit” • With Objectives • With Competencies • With Resources Market Opportunities for Profit: • Segment Size • Growth rate/potential Competitive Intensity •Underserved Needs?
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session 10 - Administration We use BLACKBOARD NOT Katalyst...

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