Segmenting & Targeting Markets. Strategic Marketing Chapter 7 210 - 234. Characteristics of Markets & Market Segments. A Market is Comprised of people or organizations (Consumer or Business) Have needs, abilities, and willingness to buy Markets have market segments
210 - 234
Geely Automobile Holdings Ltd
Time Warner Cable Example
Choosing what company to place an order with based on their ability to satisfy product & delivery requirements
Consider numerous suppliers (both familiar and unfamiliar), solicit bids, & study all proposals carefully before selecting one.
Company selects demographics as its base; Descriptors could be
A marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.
Requires a product that has little competition & no substitutes.
Examples of Product Segmented this way:
A strategy used to select one segment of a market for targeting marketing efforts.
Companies select a marketing niche to target and they focus on the needs, motives, & satisfactions of that group
Starbucks – Gourmet coffee
Rolex – High priced watch
OshKoshB’Gosh – Kids clothes
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.
A College offering a variety of programs
Situation that occurs when sales of a new product cut into sales of a firm’s existing products.
Example: Code Red Mountain Dew took away 25% of Mountain Dew Drinkers
ConcentratedREVIEW LEARNING OUTCOMEAlternatives for Selecting Target Markets
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
The place a product, brand, or group of products occupies in consumers’ minds relative to company offerings
Companies assume that consumers compare products on the basis of important features. If features being emphasized are unimportant then consumer will not buy and brand will take a hit.
Consumer Goods marketers are extremely concerned with positioning.
Effective Positioning Requires Companies to:
Campbell’s Select Soup is targeted towards upscale adults who are willing to try something new.
Can be done to compare or prove difference
In reality all companies do this on some level
Each Product Positioning Approach is Used in the Got Milk Ad on right
Grocery Stores v. Walmart