MKTG 3000 Lecture Notes - Lecture 11: Malcolm Gladwell, Pepsis, Target Market
Segmentation
I. Segmenting Markets
a. How to decide what markets to go after
b. Who are the best customers
II. What is a market?
a. Requirements:
i. Must need a desire a particular product (most important thing)
ii. Need to have ability to purchase the product
iii. Must be willing to use their buying power to purchase the product
iv. Must have the autihority to buy the product
1. very important with B2B
III. STP
a. Segmenting markets
i. What we want (needs)
ii. Who we are (demographics)
b. Targeting
i. What segments are viable
c. Positioning
i. I the cosuer’s minds
IV. Explain segmentation: TED talk on Malcom Gladwell
a. Perfect pepsi vs perfect pepsis
i. Testing 10 spaghetti sauces
1. Looked at the data, and asked if we could group the sauces together
2. That’s whe you start to get differet kids of products
ii. Why is this important?
1. Assumption used to be: ask people what they would want
2. This study: people do’t kow what they wat
a. Realize that we cannot explain what we want deep down
3. Made us realize in the importance of horizontal segmentation
a. Mustard business
i. French vs greg copon?
1. Mustard is not in a plane.
2. Fundamentally democraticed the taste
b. P
4. Howard confronted the idea of being able to serve same
a. Authentic tomatoe sauce.
b. What it took pople to be happy- have to give culturally
authentic tomoate sauce
i. People in cooking world- look for 1 way of threating
others.
5. Segmentation and variability
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Segmenting markets: how to decide what markets to go after, who are the best customers. Stp: segmenting markets, what we want (needs, who we are (demographics, targeting, what segments are viable, positioning, i(cid:374) the co(cid:374)su(cid:373)er"s minds. Importance of market segmentation: market segmentation disservice, more precise definition of customers needs and wants, more accurate marketing objectives. Segmenting by usage rate: women drink less beer than men, economic value to understanding usage rate. Basis for segmentation: benefit sought, usage rate, geography, deomographic, behaviouristic, volume usage, end use, benefit expectations, brand loyalty, prcice sensitivity, psychographic, personality attributes, motives, lifestyles. Steps in segmenting markets: select a market for study, choose bases for segmentation, select descriptors, profile and analyze segments, select target segmnets, design, implement, and maintain marketing mix. Viable segments: bigger the bubble, bigger size of the market, chart, high ability to win (x axis, attractiveness (y axis) Criteria for targets: substantiality: segment must be large enough to warrant a special marketing mix.
