Reflection paper
Chapter 6 Market Segmentation and the Marketing Mix: Determinants of Campaign Strategy
William F. Arens Michael F. Weigold Christian Arens
Overview
How marketers use behavioral characteristics to cluster perspective customers into market segments
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Today’s Objectives
Define market segmentation and describe its purposes
Explain the target marketing process
Show how IMC is used with the product element in marketing
Review how IMC is used with the place element in marketing
Discuss how IMC is used with the communication element in marketing
Illustrate how IMC is used with the price element in marketing
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The Advertising Dilemma
Advertising does not always lead to marketing success
Marketing success does not always come from advertising
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The Market Segmentation Process
2. Aggregate these groups into market segments according to their mutual interest in the product’s utility
1. Identify people with shared needs and characteristics
Demographic
Behavioristic
Geographic
Psychographic
Shared Characteristics
Categories
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Behavioristic Segmentation
Sole Users
Semi-Sole Users
Discount Users
Aware Non-triers
Trial/Rejectors
Repertoire Users
User-Status
Purchase-Occasion
Benefit Segmentation
Benefits-Sought
Volume Segmentation
Usage-Rate
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Behavioristic Segmentation
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Behavioristic Segmentation
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Geographic Segmentation
Sales are analyzed by:
Region
Country size
City size
Zip code
Types of stores
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Demographic Segmentation
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Demographic Segmentation
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Demographic Segmentation
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
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Psychographic Segmentation
Values
Attitudes
Personality
Lifestyles
Feelings
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Market Segmentation
Adidas captures attitude and lifestyle
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Psychographic Segmentation
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Psychographic Segmentation
10 values shared by people around the world
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Psychographic Segmentation
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Business, Government, & Industry
Differences from Consumer Markets
Professional buyers
Many purchase
decision factors
Categorized by NAICS code
Small number of buyers
Concentrated geographically
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Aggregating Market Segments
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Select Groups Interested in Public Utility
Whole market
Specific market
Combine Groups to Build Target Market Segments
Homogeneous
Profit Potential
Defining the Target Market
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The Target Marketing Process
2. Use the 4Ps of the marketing mix to shape a product concept for the market
1. Select a target market from the market segments identified
Product
Price
Place
Promotion
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Target Market Segments
New Empty Nest
Young Influentials
Park Bench Seniors
New Beginnings
Home Sweet Home
Movers & Shakers
Bohemian Mix
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Product Life Cycles
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The Product Element
Market
Tangibility
Consumption rate
Buying habits
Physical description
Classification
Own a word
Market segment appeal
Benefits offered
Positioning
Classification
Differentiation
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The Product Element
Perceptible
Induced
Hidden
Differentiation
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Differentiation
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Product Branding
Individual
Family
National
Private
Licensed
Words
Product
Name
Design
Symbols
Goal is brand loyalty
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The Most Valuable Brands
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Product Packaging
Containment, protection, convenience
Identification
Economy
Consumer appeal
These functions may become copy points
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The Price Element
Demand
Production & distribution costs
Competition
Corporate goals & strategies
Price Factors:
Variable influences
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The Place (Distribution) Element
Intensive
Exclusive
Selective
Indirect
Direct
Network
Buyer Club
Vertical
Franchises
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The Promotion Element
Collateral
Materials
Sales
Promotion
Product
Advertising
Communication Mix
Personal
Selling
Public
Relations
Direct Marketing
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