2_ch09_segmentation

2_ch09_segmentation - 1 Segmentation, Targeting and...

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Unformatted text preview: 1 Segmentation, Targeting and Positioning 2 Market Segmentation is dividing of market into distinct subsets of customers 3 Segmentation Application A Marriott Hotel used to be a Marriott Hotel: An upscale hotel catering to business people, pleasure seekers and international and group travelers. Today, besides the Marriott Hotels (the companys major business), there are Marriott Suites, Residence Inns, Courtyards by Marriott and Fairfield Innseach serving a smaller, targeted segment of the market. Source: Lenneman and Stanton, Mining for Niches, Business Horizons . 4 Levels of Market Segmentation Mass Marketing Segment Marketing Niche Marketing Micromarketing 5 Market Segmentation Process 1. Define the market (most important step) 2. Select segmentation variables 1. Determine methodology (statistical methods, sample, data, software) 2. Describe the segments 3. Evaluate segment attractiveness - Targeting 4. Select target segments & allocate resources - Targeting Step 1: Define the Market 1. Segmentation defines common customer needs. 2.Those common needs may be satisfied by similar or dissimilar technologies or have different solutions. Eg: Customer dissatisfaction at long delays at supermarket checkout. Solution 1: Faster UPC scanner systems. Solution 2:Entertainment/Sales systems on checkout lines. Note: Total solution defines (competitive) market, not product or technology . Lilien & Rangaswamy, Marketing Engineering, 1998 Electric Typewriter Market 1980 1981 1982 1983 1984 1985 Shipments A (Us) 403,027 495,192 548,905 550,351 541,388 515,000 B 369,916 388,520 349,396 323,005 342,197 297,000 Other 367,057 324,010 343,885 370,374 202,495 129,070 Total 1,140,0001,207,7221,242,1861,243,7301,086,080 941,070 Market Shares (%) A (Us) 35.4 41.0 44.2 44.2 49.8 54.7 B 32.4 32.2 28.1 26.0 31.5 31.6 Other 32.2 26.8 27.7 29.8 18.6 13.7 1980 1981 1982 1983 1984 1985 Shipments A (Us) 403,027 495,192 548,905 550,351 541,388 515,000 B 369,916 388,520 349,396 323,005 342,197 297,000 Other Electric 367,057 324,010 343,885 370,374 202,495 129,070 Electronic Word Processors 60,040 112,220 209,800 392,352 733,699 1,372,016 Total 1,200,040 1,319,942 1,451,986 1,636,082 1,819,778 2,313,086 Market Shares (%) A (Us) 33.6 37.5 37.8 33.6 29.8 22.3 B 30.8 29.4 24.1 19.7 18.8 12.8 Other Electric 30.6 24.5 23.7 22.6 11.1 5.6 Electronic Word Processors 5.0 8.5 14.4 24.0 40.3 59.3 Word Processor Market Step 2: Select Bases for Segmenting & Describing Markets Consumer Business Segmentation Needs, wants, benefits, Needs, wants, benefits, solutions to Bases...
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This note was uploaded on 01/31/2011 for the course MGCR MGCR 331 taught by Professor Kerklan during the Fall '10 term at McGill.

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2_ch09_segmentation - 1 Segmentation, Targeting and...

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