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Final

MGMA01H3 Study Guide - Final Guide: Nyquil, Clairol, Headon


Department
Management (MGM)
Course Code
MGMA01H3
Professor
Sam J Maglio
Study Guide
Final

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Segmenting,Targeting,Positioning
● BasicsofSegmenting
○ Identifybasesandsegmentthemarket
○ developprofilesofresultingsegments
● BasicsofTargeting
○ Evaluatesegmentattractiveness
○ Selecttargetsegments
● BasicsofPositioning
○ Developpositioningconceptsfortargetsegments
○ Select,develop,communicatethechosenconcepts
● Carpetexample
○ Cancomparetheimportanceoftwoormorebenefitsagainsteachotherand
identifySEGMENTSthatway
○ TochoosethesegmenttoTARGET,choosethebenefitprofilethatlooksmost
likeyourproduct’
○ TofigureoutthewayyoumustPOSITIONyourproduct,promotethebenefit
profilethatservesthechosensegmentbest
● Segmentation
○ Identifybasesandsegmentthemarket
○ Developprofilesofresultingsegments
○ Separatingprospectivebuyersintogroupssuchthat,withinagroup:
■ SimiliarityisHIGH
● SimilaritybetweengroupsisLOW
■ Needsarecommon
■ Responsestomarketingactionaresimilar
○ Whatmakesgoodsegmentation?
■ Largeenoughtosellto
■ Identifiable
■ Distinctive
■ Stable
○ Basesforsegmentingconsumermarkets
■ Personalcharacteristicsoftheconsumer
● Demographics
○ Easilymeasurablevitalstatistics
○ Gender
○ Race/ethnicity
○ Age
○ Income
● Psychographicsandlifestyle
○ Firstusedinmarketing~40yearsago
○ Goal:createnewformsofmeasuresthatfocusmoreon
consumption,lessonother

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○ Distinct:Activities,Interests,Opinions(AIO)
○ Combined:VALS
○ VALSDimensions
■ Primarymotivation
● Whataboutself/worldgovernsactivities?
● Ideals
● Achievement
● Selfexpression
■ Resources
● Howmanyresourceseachgrouphas
● Differentiateinnovatorsfromsurvivors
● Innovators:successful,takechargepeople
withhighselfesteem.Theyliketoexpress
themselves,havevariedlives.Areactive
buyersofconsumerproducts
○ Thinkers:motivatedbyideals.
Mature,satisfied,comfortable,
reflectivepeoplewhovalueorder,
knowledgeandresponsibility.
Typicallyconservativebutareopen
tonewideasthatfittheirframework.
● Survivorslivenarrowlyfocusedlives.Few
resources.Comfortablewiththefamiliar,
primarilyconcernedwithsafetyandsecurity.
Focusonmeetingneedsthanfulfilling
desires.Littleprimarymotivation.
● Geographicsegmentation
○ Regionalsegmentation
○ ZIPclustering
■ Distinctmarketingforsimilartypesof
neighborhoodsacrossthenation
■ Benefitssoughtbytheconsumer
● Focusisonbenefitspeopleareseekinginconsumingagiven
productorservice
● Assumption:
○ Thebenefitspeopleareseekinginconsumingagiven
productarethebasicreasonsfortheexitenceoftrue
segments
● Attemptstomeasure:
○ Consumervaluesystems
■ Comfortseekers,Trendsetters,BargainHunters,
WearandTearers,ConvenienceSeekers
○ Perceptionsofvariousbrandsinproductclass

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■ TrueReligionvsWranglersJeans
■ Systematic,productrelatedbehaviorsoftheconsumer
● Focusisondegreeofbrandloyality,amountofbrandusage,etc.
● Oftenthemeasureisbehavioralinnature
○ Purchasefrequency
■ Heavyuserargumentor8020rule
○ Brandswitchingrates
● Targeting
○ Evaluatesegmentattractiveness
■ Marketopportunitiesforprofit
● Segmentsize
● Growthrate/potential
■ Competitiveintensity
● Unservedneeds?
● Competitorsstrengths?
■ Companyfit
● Withobjectives
● Withcompetencies
● Withcustomerbase
● Withresources
○ Selecttargetsegments
■ Criterionforpickingtargetsegments
■ Mobilexample
● Found5segmentsinsteadofone(priceconscious)inthebuyers
ofgasoline
● Roadwarriors
○ 16%
● TrueBlues
○ 16%
● GenerationF3
○ 27%;largestsegment
● Homebodies
○ 21%
● PriceShoppers
○ 20%;thirdsmallestandobviouslynotthemostimportant
segment!
■ Productlinesegmentation
● Onecompanymayhavedifferentproductlinesthatappealto
differentsegments
○ OldNavyvsGAPvsBananaRepublic
○ OldNavy:families,verypriceconscious
○ GAP:young,fashionable,lesspriceconscious
○ BananaRepublic:oldermenwithlargerincomes
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