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Unformatted text preview: 23:27 Why Segment Markets????? (Ultimate Objective) For each target market, position a product through product differentiation based upon a sustainable competitive advantage. 5-step marketing research approach Define the Problem, Develop Research Plan, Collect Relevant Information, Develop Findings, Take Marketing Actions Types of Questions on Questionnaires Open-ended question, closed-end or fixed alternative questions (multiple choice), dichotomous questions (yes/no), semantic differential scale (choose where you fall on a spectrum from like to dislike, Likert scale questions (degree to which one agrees/disagrees) Criteria to use in forming the segments (5 criteria) Simplicity and cost-effectiveness of assigning potential buyers to segments Potential for increased profit Similarity of needs of potential buyers within a segment Difference of needs of buyers among segments Potential of a marketing action to reach a segment 4 general bases of segmentation Geographic sections of country might have different product needs Demographic Gender/age/race/life stage/marital status/occupation/income Psychographic AIO (activities, interests, opinions) Behavioral based upon observable actions/attitudes where they buy, when they buy, etc. 80/20 rule Two Approaches to Product Positioning Head-to-head positioning competing directly with competitors on similar attributes in the same target market Differentiation positioning seeking a less-competitive, smaller market niche in which to locate a brand 3 specific segmentation strategies One market and multiple market segments Multiple products and multiple market segments Segments of one, or mass customization (Microsoft, Nike) Cannibalization 2 broad categories of products Consumer products - products purchased by the ultimate consumer Business products products organizations buy that assist directly or indirectly in providing other products for resale 4 types of consumer products Convenience products items that the consumer purchases frequently, conveniently,...
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- Fall '11