Class Notes (837,434)
Canada (510,272)
BUS 446 (6)
Lecture 6

BUS 446 - Lecture 6

3 Pages
122 Views
Unlock Document

Department
Business Administration
Course
BUS 446
Professor
Lindsay Meredith
Semester
Fall

Description
Why Segmentation 1) Segmentation determines whether a market exists & is accessible 2) It determines the controllable variables comprising the marketing mix:  Product  Price  Place (Distribution)  Promotion (Advertising, Personal Selling)  Bad on that versus brand a + b  what am I good at? o Switch the orientation that might work for you o Don’t throw in the towel  London Metals Exchange o They have to be the same quality in order to sell o If the quality is the same, then you compete on Price  If not on Price, maybe on Technology  Diversify in roder to reduce your risk o Horizontal integration o Don’t’ put everything in one sector (Pulp and paper)  Do Pulp + Paper Plastics, Oil refinery, etc Consumers and Organizational Buyer Behaviour Don’t fall into the trap of supply side definitions for market segments based on the company’s definition  Ie. Products “A” and “B” are similar, so they serve the same market and act as substitutes for each other. Go for a demand oriented approach. This is based on the customers’ definition of the products and their usage. Consider two customer oriented approaches for identifying product markets. 1) Purchase or Usage Behaviour  Provides a good indication of what purchasers do or have done with regard to (WRT) with product and its marketing  *Note: In B2B, make sure you visit customers to see how they use your product o Can be frightening if they aren’t using it as intended b/c that means your market could be dying, or it is a new market to go into  *Note: This is one of the biggest things to take a look at. Don’t be fooled by the primary use! Measure by: A) Cross Price Elasticity of Demand (CPE of D)  The price sensitivity of one brand WRT to changes in the prices of competing brands o E.g. What happens to the sales of brand “A” as decreases occur in the prices (or other marketing mix expenditures) of
More Less

Related notes for BUS 446

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit