COMM 231 Lecture 5: COMM 231 (Dr.Ashworth) Week 5 notes.docx
11 Feb 2014
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Comm 231: intro to marketing dr. ashworth. Week five: reason based-decision: if a customer is on the fence about purchasing, guve them a positive reason to do it! (example: discount) Increase in sales needs to offset the amount of the discount. Choose the most profitable segment(s) and that fit with the firms long term objectives: evaluting segments: revenue. Size: how many people/growth rate/ usage rate. Conpetition: how much/how good/response of competition/ first movers vs. late entrant. Wtp: importance of need/price of competition/ price sensitivity/ buyer power: evaluating segments: costs. Costs associated with developing the 4 p"s. Price should not be based on costs, but on the buyer"s wtp. Taste-based segmentation, just a guessing game: positioning is a good way to make sure the firm is on track, whatever comes to mind first about a product is its position. Strategies for identifying segments: split up the market: based on the variants of the core needs that the product satisfies.
