Chapter 9—Market Segmentation, Targeting and Positioning • Market segmentation – aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action
• 5 -step segmentation process o 1. Group Potential Buyers into Segments (Geographic, Demographic, Psychographic, Behavioral) o 2. Group Products to Be Sold into Categories (Wendy’s: Burgers, Gender, Needs, etc.) o 3. Develop a Market-Product Grid and Estimate the Size of Markets (Market Product Grid, Estimating Market Sizes) o 4. Select Target Markets (Market Size, Expected Growth, Competitive Position, etc.) o 5. Take Marketing Actions to Reach Target Markets (Wendy’s: Day commuters, between- meal snacks, dinners to night commuters) • Perceptual mapping – displaying/graphing in 2 dimensions the location of products/brands in the minds of consumers to enable a manager to see how consumers perceive competing products/brands, as well as its own product/brand • Vetting – formal and thorough examination (usu. by experts) prior to grant of approval/clearance • Segments of one: mass customization o Tailoring goods/services to the tastes of individual customers on a high-volume scale o Cheap items can make customer’s compromise their individual tastes and settle for that • YouTube – Positioning and Repositioning according to Jack Trout Chapter 10: Developing New Products and Services • Convenience Products – items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort (food) • Shopping Products – items for which the consumer compares several alternatives on criteria such as price, quality, or style (clothes) • Specialty Products – items that the consumer makes a special effort to search for/buy • Unsought Products – items that the consumer doesn’t know about or doesn’t initially want • Continuous Innovation – requires no new learning by customers, gain consumer awareness and wide distribution (new and improved detergent) • Dynamically Continuous Innovation – disrupts consumer’s normal routine but no totally new learning, advertise pts of difference and benefits (electric toothbrush) • Discontinuous Innovation – requires new learning/consumption patterns, educates consumers thru product trial (DVR) • YouTube – Innovation according to Scott Anthony • Marketing reasons for new product failures o Insignificant point of difference o Incomplete market and product protocol o Not satisfying customer needs o Bad timing o Not attractive to market o Poor quality o Poor marketing mix o No access to buyers • Organizational reasons for new product failures o Not listening to the customer
o Skipping stages in new product process o Pushing poorly conceived product o Encountering groupthink o Not learning critical lessons • 7-step product development process o New Product Strategy Development, Idea Generation, Screening/Evaluation, Business Analysis, Development, Market Testing, Commercialization Chapter 11:
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