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Lecture

MKT 100 Lecture Notes - Psychographic

1 pages94 viewsSummer 2011

Department
Marketing
Course Code
MKT 100
Professor
Paul Finlayson

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Module 5: Segmentation, Targeting and Positioning (STP)
Customer Focus and Pos itioning
attract, serve and retain certain customers
Focus ing on profitable customers, superior analysis of their needs and f itting your
offering to their needs and benefits sought = competitive t hinking and positioning.
changing customer preferences changes demand changes seller supply changes
consumer preferences and demand = market decisions.
Segmentation Variables for Consumer Markets
oGeographic: World region, climate zone, local weather, trading block, country,
country region, state, province, county, city, s uburb, city block, town, village
oDemographic: Genetics, body type, physical handicaps, height, weight, age, life-
stage, cohor t generation, family size, education, intel ligence, language, income,
wealth, occupation, ethnicity, nationality, t ribal identity, family identity, heritage,
religion, political party membership
oPsychographic: Lifestyle, interests, hobbies, personality, sociability, social class,
values
oBehavioural: Product consumption, channel usage, channel loyalty, features used,
product benefits sought, brand loyalty, early adopter, usage occasion
characteristics
Focusing on Customer Prof itability
Step 1: customer focus - identify the direct determinants (drivers) of customer profitability:
ocustomer purchases of high margin products and services
othe sheer quantity of purchases made per year (size of the customer)
olow selling costs to the customer, low delivery costs and low af ter-sales service costs
oless direct new profit able bus iness a very satisf i ed customer brings to the company through refer rals,
recommendations and casual and explicit endorsements of your products and services.
Step 2: positioning - firm deploys or invests it s resources in what it believes to be the key drivers of
customer prof itability so as to develop profitable competences and competitive advantage
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