In what ways can a company divide the consumer market into segments?
What segmentation divides the market into units such as nations, states, regions, counties, cities, or neighborhoods.
What is Geographic Segmentation?
1. Industry: Which industries should we serve?
2. Company size: What size companies should we serve?
3. Location: What geographical areas should we serve?
What is Demographic?
Group customers into segmentation in solving a particular consumption problem.
What is Needs-Based Segmentation?
The size, purchasing power, and characteristics of the segments can be measured
What is measurable?
A firm attempts to serve all customers roups with all the products they might need.
What is Full Market Coverage?
What segmentation includes age, family size, family life cycle, gender, income, occupation, education, religion, race, generation, nationality, and social class?
What is Demographic Segmentation?
1. Technology: What customer technologies should we focus on?
2. User or nonuser status: Should we serve heavy users, medium users, light users, or nonusers?
3. Customer capabilities: Should we serve customers needing many or few services?
What is Operating Variables?
For each needs-based segment, determine which demographics, lifestyle, and usage behaviors make the segment distinct and identifiable (actionable).
What is Segment Identification?
The segments are large and profitable enough to serve. A segment should be the largest possible homogeneous group worth going after with a tailored marketing program.
What is Substantial?
A firm selects a subset of all the possible segments, each objectively attractive and appropriate
What is Multiple Segment Market?
What segmentation includes personality traits, lifestyle, or values?
What is Psychographic Segmentation?
1. Power structure: Should we serve companies that are engineering dominated, financially dominated, and so on?
2. Nature of existing relationship: Should we serve companies with which we have strong relationships or simply go after the most desirable companies?
3. General purchasing policies: Should we serve companies that prefer leasing? Service contact? Systems purchases? Seal bidding?
What is Purchasing Approaches?
For each segment, create a "value proposition" and product-price positioning strategy based on that segment's unique customer needs and characteristics.
What is Segment Positioning?
The segments can be effectively reached and served
What is Accessible?
The firm markets to only one particular segment
What is Single Segment Market?
What segmentation includes enthusiasts, image seekers, savvy shoppers, traditionalists, satisfied sippers, and overwhelmed?
What is Behavioral Segmentation?
1. Urgency: Should we serve companies that need quick and sudden delivery or service?
2. Specific application: Should we focus on a certain application of our product rather than all applications?
3. Size or order? Should we focus on larger or small orders?
What are Situational Factors?
Create a "segment storyboard" to test the attractiveness of each segment's positioning strategy.
What is Segment "Acid Test"?
The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. If married and single women respond similarly to a sale on perfume, they do not constitute separate segments.
What is Differentiable?
The ultimate level of segmentation leads to "segments of one", "customized marketing", or "one-to-one marketing."
What is Individual Marketing?
Name one of the four groups of brand loyalty status?
What is Hard-core loyals, Split loyals, Shifting loyals, and Switchers?
1. Buyer-seller similarity: Should we serve companies whose people and values are similar to ours?
2. Attitude toward risk: Should we serve risk-taking or risk-avoiding customers?
3. Loyalty: Should we serve companies that show high loyalty to their suppliers?
What are Personal Characteristics?
Expand segment positioning strategy to include all aspects of the marketing mix: product, price, promotion, and place.
What is Marketing-Mix Strategy?
Effective programs can be formulated for attracting and serving the segments.
What is Actionable?
Name one of the four "P's"
What is Product?
What is Place?
What is Promotion?
What is Price?