Segmentation Targeting Discussion

Segmentation Targeting Discussion - Segmentation Market...

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Segmentation
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Market Segmentation Market segmentation is the subdividing of a market into distinct subsets of customers. Segments Members are different between segments but similar within.
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STP is a Core Business Process ² To identify and select groups of potential customers. .. § Organizations, Buying Centers, Individuals ² Whose needs within-groups are similar and whose needs between-groups are different (S) ² Who can be reached profitably (T) ² With a focused marketing program (P) STP - (Segmentation, Targeting, Positioning) is a Decision Process
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Segmentation Identify segments Targeting Select segments Positioning Create competitive advantage Marketing resources are focused to better meet customers needs and deliver more value to them Customers develop preference for brands that better meet their needs and deliver more value Customers become brand/supplier loyal, repeat purchase, communicate favorable experiences Brand/supplier loyalty leads to increased market share and creates a barrier to competition Fewer marketing resources needed over time to maintain share due to brand or supplier loyalty Profitability (value to the firm) increases How STP Creates Value
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How would you categorize these cards?
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Needs-Based Segmentation Distinguish Between Bases and Descriptors Bases —characteristics that tell us why segments differ (e.g., needs, preferences, decision processes). Descriptors —characteristics that help us find and reach segments. (Business markets) (Consumer markets) Industry Age/Income Size Education Location Profession Organizational Life styles structure Media habits
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Categories For Describing Consumers Demographic Socioeconomic Personality Psychographics and Values Behavioral
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Desirable qualities for segments Sizeable Identifiable Reachable Respond differently Coherent Stable
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Primary Characteristics Of Segmentation Bases of Segmentation § Characteristics that tell us why segments differ (e.g., needs, preferences, decision processes) Segment Descriptors § Characteristics that help us find and reach segments
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Clustering – The Steps Identify the bases for segmentation (qualitative or quantitative) Survey a sample of customers by having them rate the relative importance of each attribute Conduct a cluster analysis to create segments § Group respondents so that they are relatively homogeneous within a group and
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. . . D
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This note was uploaded on 01/20/2012 for the course BUS 347 taught by Professor Timholleran during the Fall '11 term at Emory.

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Segmentation Targeting Discussion - Segmentation Market...

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