to accompany basic marketing, shapiro, 10th cdn ed. ppt slides created and copyright by tim...
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To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 1
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 2
People with similar needs wants
Marketing Mixes (4P’s) are developed for specific target markets
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 3
Don’t just focus in the product
- some people define the market in terms of products they sell, instead of in terms of the satisfaction they bring
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 4
Two Basic Types of markets
Generic Market
• broadly similar needs
• sellers offer competitively different ways of satisfying the needs
Product- Market
• very similar needs
• sellers offer close substitute ways
• - not much difference between the product
Page 227
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 5
Market Segmentation
Two Step Process
• 1. Naming broad product-markets
• 2. Segmenting these to select target markets
PAGE 231
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 6
Clustering
• Marketing-Oriented managers know that segmenting involves clustering people with similar needs into a market
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 7
Market Segmentation
Four Criteria for determining if the segment you have is useful
1. Homogenous
2. Heterogenous
3. Substantial
4. OperationalPage 233
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 8
Market SegmentationFour Criteria 1. Homogenous
- the people within the segment are all similar
2. Heterogenous- the people between segments should be very different
3. Substantial- the segment should have enough people to make to worthwhile
4. Operational- the dimensions should be useful Page 233
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 9
Segmenting
TR - the text talks about “dimension” such as geographic, demographic and benefits offered
The proper terminology to plainly discuss the 4 ways of segmenting is
Demographic
Geographic
Psychographic
Benefitthe following diagram comes from another text and
may help you understand this more clearly
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 10
Figure 3.1 Bases for Market Segmentation
From the Beckman, Kurtz, Boone text
Market Segmentation
4 main Categories
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 11
Criteria for Segmenting
Single Target Market approach
Multiple Target Market approach
Combined Target Market approach
Page 235
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 12
Criteria for Segmenting
Combined Target Market approach
Eg. A company that makes garlic flavoured cream cheese
competition is companies that use single market approach and makeroasted garlic and garlic and herb cream cheese
“… to
o much combining
is ris
ky …”
Page 236
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 13
Segmenting
“...Should you Segment, or Combine …”
the text says it is better to segment
- also, depends on which gives you the best profit
TR - it also depends on what competition does !
Page 238
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 14
Profit is the Balancing Point
• In trying to determine whether you should divide the market up into many segments, and sell variations of the product to different segments, or sell the same product to everybody, the deciding factor is based on which option will give you the most profit
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 15
Market Segmentation
“… cost considerations encourage more aggregating to obtain economies of scale
… demand considerations suggest less aggregating to satisfy needs more exactly…” …”
what does this mean ?
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 16
Market Segmentation
“… Segmenting is an aggregating process …”
what does this mean ?
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 17
Market Segmentation
Aggregate - 1. collected; collective, total 2. Sum total 3. Unite
- Oxford Pocket Dictionary
TR. - all the stuff together
Aggregating
- putting things together which are similar
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 18
Market Segmentation
Aggregating“… how far should the aggregating go …”?
- sometimes not everybody will fit, you can leave them out, or just call it “other”
“… these people are simply too few … may have to be ignored unless they are willing to pay a high price for special treatment…”
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 19
Int’l Mktg Requires MORE segmentation
• The additional differences of other cultures and languages can make segmentation more complicated
• That is to say, your decision to divide up the market may be based on things which are not the same as in North America
• Information, on which to base your segmentation, is harder to obtain
Page 243
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 20
More Sophisticated Techniques
• VALS - Values, Attitudes and Lifestyles
(page 244)
• VALS and Goldfarb approach are based on a segmentation approach known as psychographics, or lifestyle analysis
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 21
Psychographic Segmentation
Page 49~51 in Beckman, Boone
Goldfarb Segments
1. Day2day watchers
2. Old fashioned Puritans
3. Responsible survivors
4. Joiner-Activists
5. Aggressive Achievers
6. Disinterested Self-Indulgents
http://www.goldfarbconsultants.com/who.html
More traditional
Less traditional
Page 105 in 8th edition
Page 222, 9th edition
Page 245, 10th edition
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 22
Clustering Techniques
• “… trying to find similar patterns with sets of data …”
• often done with computers that have access to quite a bit of information on each target
• the computer runs a program designed to find common information and helps the analyst determine what the specifics of a new segment might be
Page 247
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 23
Trade - off Analysis
• “… another computer based approach…”• companies do this to figure out what things a
customer is willing to pay more for, and which things are not so important so you can stop doing it
• ex. In the text is Marriott hotels
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 24
Simply - how customers view the firm and its product
Mercedes, position is luxuryWalmart, position is lowest price, quality not so bad
Landrover, position is very very reliable
Harvey’s - have it your way Page 248
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 25
Burger King - your way
Home Depot - customer service - older advisors
Zellers law toy land
SONY - maintain high price position
Volvo - accident safety
HMV - no risk refund
BKG - customized shoes
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 26
Browns shoe stores high price, funky shoes
Costco
Shoppers - Health Watch System
Saturn - above average customer service
Winners - brand names at generic name prices
Honest Eds - lowest no matter what
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 27
Changing your position, to get better reaction, might mean
1. Changing the Product (one of the 4 P’s)
2. Changing the Price3. Adding a new product line
4. Change the advertising (Promotion) eg. Women in truck commercials eg. 7UP - the Un-cola
To accompany Basic Marketing, Shapiro, 10th Cdn Ed. ppt slides created and Copyright by Tim Richardson
Chapter 8
Marketing 106
Slide 28Percentage Distribution of the Population of Canada by Province
Slide 3-8
Page 38
+, Ontario contains
52% of foreign born people in Canada
Geographic Segmentation