marketing 300 discussion section. announcements?

marketing 300marketing 300discussion section

announcements?

discussion question

group policy

Anyone still need to find a group?

micro-macro dilemma

personal benefits vs. social costs

personal benefits vs. social costs

personal benefits vs. social costs

personal benefits vs. social costs

trash mass twice the size of TEXAS!

personal benefits vs. social costs

personal benefits vs. social costs

personal benefits vs. social costs

personal benefits vs. social costs

question

Why does Progressive insurance offer customers a price quote for Progressive and for its competitors?

question

(hint: think about the purpose of the 4 Ps)

Segmentation

question

question

question

Segmentation• Different people have different needs and different

uses for products within a category.• As a business, it’s important to know who might be

interested in your product/service and why.• Why?

What is a segment?• Segments/Submarkets

A relatively homogeneous group of customers who will respond similarly to a marketing mix.

Segments are based around NEED.

discussion questionConsider the student market for off-campus apartments in your

city. Identify some segments that have different needs and determining dimensions. Then evaluate how well the needs in these market segments are being met in your geographic area. Is there an obvious breakthrough opportunity waiting for someone?

discussion question• Need• Qualifying dimensions– minimum requirements; without these, a consumer is not

interested (“I ABSOLUTELY NEED THIS!”)– ex. a roof. If a house doesn’t have a roof, you probably won’t

consider living there.• Determining dimensions– qualities that consumers ultimately choose on once they have a

qualifying set (“THIS WOULD BE NICE TO HAVE, BUT I DON’T NEED IT”)

– ex. I choose this house from the ones I liked because it has off-street parking

discussion questionConsider the student market for off-campus apartments in your

city. Identify some segments that have different needs and determining dimensions. Then evaluate how well the needs in these market segments are being met in your geographic area. Is there an obvious breakthrough opportunity waiting for someone?

discussion questionTalk with your group about your ideas for a few

minutes. Come up with three distinct segments with qualifying dimensions and a “breakthrough opportunity.”

WARNING!Think about students in terms of all relevant segmenting dimensions (NEEDS), not only in terms of their age or year. The latter will lead you down the wrong path.

discussion questionSegment Need Qualifying

DimensionsDetermining Dimensions

Luxury-seekers Comfort, view, status

Amenities, nice view, cleaning service

Gym, heated parking lot

discussion questionReady?

discussion questionSegment Need Qualifying

DimensionsDetermining Dimensions

Luxury-seekers Comfort, view, status

Amenities, nice view, cleaning service

Gym, heated parking lot

discussion questionSegment Need Qualifying

DimensionsDetermining Dimensions

Luxury-seekers Comfort, view, status

Amenities, nice view, cleaning service

Gym, heated parking lot

Budget-conscious

Low cost housing

Cheap rent, paid utilities

Close to campus

Socialites Proximity to bars, ability to be loud

Cool neighborhood, near bars

Paid utilities

Families Quiet, safety, good school district

Suburban, good schools, low crime area

Washer/Dryer in unit

what’s wrong with this?

Grad Students

Grad Students

Sophomores and Juniors

Sophomores and Juniors SeniorsSeniors

MADISON HOUSING SEGMENTS

are all students the same?

People who want quiet

People who want quiet Budget consciousBudget conscious People who want

to party 24/7People who want

to party 24/7

Seniors

we know that not everyone wants the same thing, even if they are in the same demographic

what’s wrong with this?• Some seniors might want quiet, others might be looking for proximity to bars, others might want pets. These groups do not necessarily overlap.

•“Seniors” also leaves out non-seniors who might be looking for quiet, proximity to bars, etc.

People who want quiet

People who want quiet Budget consciousBudget conscious People who want

to party 24/7People who want

to party 24/7

are all students the same?

Seniors

by making “seniors” a segment, you are implying that all students want the same thing

Clones

this is the right way

Quiet SeekersQuiet Seekers Budget consciousBudget conscious PartiersPartiers

Overall Market

this is better because it divides overall market by needs, not by demographics

discussion questionHey wait a minute! How come you said that

“seniors” isn’t a segment but “families” is?

discussion question• This isn’t an exact science. Use your intuition.• Probably most families are looking for similar

things; students probably aren’t.• Homogeneous within (people within a

segment very similar)• Heterogeneous between (people in different

segments are not very similar)

discussion question• Warning: You will have the irrepressible urge

to segment by demographics. Don’t do it! • It’s okay to use demographics (ex. age,

gender, occupation) to help you segment, but don’t rely on them.

discussion question• Segment based on

NEED

discussion question• Are all the needs you mentioned being met here

in Madison? • What is a market that you think is out there that

is not currently being met?

quizReminder: • The quizzes are timed. You have 4

minutes to submit them. After that, the system will not accept them!

• You have 2 attempts to complete the quiz. The system will take the higher score.

quizLipton has increased sales by developing ads that encourage its

current customers to drink Lipton tea instead of coffee at morning "coffee breaks." This effort focuses on

A. Market developmentB. DiversificationC. Product developmentD. Market penetration E. None of the above

quiz

What does “market” mean?

quiz• The president of a company that produces cardboard boxes

is concerned about the large number of competitors with extra capacity. As he put it, "our best shot is in the hands of our sales manager--she makes all of our marketing decisions and is creative enough to figure out how to sell more boxes." It seems that this company is run as if it were in the:

a) Production erab) Marketing company erac) Simple trade erad) Sales erae) Marketing department era

quizA digital camera, a computer video-cam, and a computer

scanner might compete in the sameA. Single target marketB. Generic marketC. Multiple target marketD. Combined target marketE. Product-market

quizA. Generic market ex. things that transfer digital images to your computer

B. Product-market ex. digital cameras

C. Single target market ex. waterproof digital camera

D. Multiple target market ex. one camera targeted at professionals and amateurs (with

different marketing mixes)

E. Combined target market ex. one camera targeted at professionals and amateurs (same

marketing mixes)

other questions?

?

Have a great weekend