Benefits from the productservice q most closely

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Unformatted text preview: . q Most closely aligned to the marketing concept q Creating Segment Strategies Just because marketers obtain data that can be used to segment markets does not ensure a good execution. q Here, we walk through an example of data obtained on Monosodium Glutamate and attempt to determine a strategy for each segment. q The Monosodium Glutamate Example Example None Family Age Size large 50+ Light large Heavy small Income Location low E,SE 35-54 mid W,SW 24-35 high NE What is the Proper Strategy? What q Non-users: get them to try the product. – How? Coupons – Where? East and Southeast – Who? Low Income and Large Families q Light Users: come up with new uses. – How? Recipes – Where? West and Southwest – Who? Mid-income, 35-54 q High Users: Protect with reinforcement – How? “frequent flier” programs – Where? Northeast – Who? Large income, small families Market Targeting Total market approach Single Marketing Mix Target Market Concentration approach Target Market I Single Marketing Mix Target Market II Target Market III Multi-segment approach Marketing Mix I Marketing Mix II Marketing Mix III Target Market I Target Market II Target Market III -- Five Patterns of Target Market Selection Selection Single-segment concentration M1 M2 M3 P1 Selective specialization M1 M2 M3 P1 P1 P2 P2 P2 P3 P3 P3 Market specialization M1 M2 M3 Product specialization M1 M2 M3 Full market coverage M1 M2 M3 P1 P1 P2 P2 P3 P3 P = Product Product M = Market Effective Segmentation Criteria Criteria q q q q q Differential Response (must be meaningful, respond differently to marketing mix) Accessible (must have unique access) Substantial (must be large enough to warrant the trouble) Action...
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