MOS 2320 Chapter 7 and 16 - Segmentation, Targeting and Positioning - Global Marketing.docx

5 Pages
75 Views
Unlock Document

Department
Management and Organizational Studies
Course
Management and Organizational Studies 2320A/B
Professor
Gail Leizerovici
Semester
Fall

Description
Chapter 7: Segmentation, Targeting and Positioning The STP Process Step 1: Establish Overall Strategy or Objectives - Must be consistent with and derived from the firm’s mission and objectives and current situation – SWOT Step 2: Segmentation Bases - Develops descriptions of different segments, their needs, wants and characteristics; this helps the firms better understand the profile of the customers in each segment - Geographic Segmentation: the grouping of consumers on the basis of where they live - Demographic Segmentation: the grouping of consumers according to easily measured, objective characteristic such as age, gender, income and education o Gillette splits into gender  fusion razor ads for men and Venus ads for women - Psychographic Segmentation: how consumers describe themselves; allows people to describe themselves by using those characteristics that help them chose how they occupy their time (behaviour) and what underlying psychological reasons determine those choices o Self-Values: goals for life, not just the goals one wants to accomplish in one day; a component of psychographics that refers to overriding desires that derive how a person lives his or her life o Self-Concept: the image a person has of himself or herself o Lifestyle: refers to the way a person lives his or her life to achieve goals o VALS: a psychographical tool developed by Strategic Business Insights, classifies consumers into 8 segments  innovators, thinkers, believers, achievers, strivers, experiencers, makers and survivors - Behavioural Segmentation: groups consumers based on the benefits they derive from products or services, their usage rate, their user status and their loyalty o Benefit segmentation: groups consumers based on the benefits they derive from products/services o Loyalty segmentation: strategy of investing in retention and loyalty initiatives to retain the firm’s most profitable customers - Multiple Segmentation Methods: o Demographic and geographic segmentation is easy but they don’t help marketers determine their customer needs o Geodemographic segmentation: grouping demographic and geographic and lifestyle characteristics  Consumers in the same neighbourhoods tend to buy the same cars, appliances, apparel etc.  PSYTE cluster: the grouping of all neighbourhoods in Canada into 60 different lifestyle clusters Step 3: Evaluate Segment Attractiveness - Identifiable: who is within their market to be able to design products or services to meet their needs o The Gap, Gap Kids, babyGap - Reachable: consumers must know the product exists, understand what it can do for them and how to buy it - Responsive: customers in the segment must react similarly and positively to the firm’s offering - Substantial and Profitable: measure the size and potential growth of target markets Step 4: Select Target Market - Undifferentiated segmentation strategy (mass marketing) o A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups o Salt, sugar, greeting cards - Differentiated Segmentation Strategy o A strategy through which a firm targets several market segments with a different offering for each o La Senza, La Senza Express and La Senza Girl - Concentrated (Niche) Segmentation Strategy o A marketing strategy of selecting a single, primary target market and focusing all energies on providing a product to fit that market’s needs o Cora’s focusing on breakfast and brunch food o Abercrombie and Fitch 18-22 year olds - Micromarketing (one-to-one) marketing o An extreme form of segmentation that a tailors a product or service to suit an individual customer’s wants and needs o Build-A-Bear workshop, Yo-yos o Mass customization: the practice of interacting on a one-to-one basis with many people to create custom made products or services; providing one-to-one marketing to the masses  NikeID lab Step 5: Identify and Develop Positioning Strategy - Positioning: the mental picture that people have about a company and its products or services relative to competitors o Friends, family, relatives, reference groups, TV and internet, newspaper, personal experience - Positioning Statement: expresses how a company wants to be perceived - Value o Price and quality o Gillette – “the best a man can get” o Walmart – “Save money. Live Better” - Product Attributes: focuses on attributes most important to the target market o Energizer – “ it keeps going and going” o KFC – “finger licking good” - Benefits/Symbolism: meanings created behind brands  tony the tiger, gerber baby o Canon – “Express yourself” o L’Oreal- “because I’m worth it” - Competition: o Capital One – “ hands in your pocket” - Market Leadership o Canadian tire, RBC, HP, Google o Being #1 Positioning by Using Perceptual Mapping - Perceptual map: displays, in two or more dimensions, the position of products or brands in the consumer’s mind - Ideal point: the position at which particular market segment’s ideal product would lie on a perceptual map o Determine consumers’ perceptions and evaluations of the product/service in relation to competitors o Identify competitors’ position o Determine consumer preferences o Select position o Monitor the positioning strategy Repositioning - Junk food companies trying to reposition themselves as offering healthier choices - McDonalds and their Bistro menu - Pizza Pizza with multigrain dough - Tiffany & Co ; luxury brand until they tried to reach the middle class; upper class got pissed so Tiffany increased prices of other jewelry - Brand Repositioning: a strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences Chapter 16: Global Marketing Growth of the Global Economy: Globalization of Marketing and Production - Globalization of production (off shoring): refers to manufacturers’ procurement of goods and services from around the globe to take advantage of national differences in the cost and quality of various factors of production o Eg. Labour, energy, land, capital o Not all offshoring is about inexpensive labour - General Agreement on Tariffs and Trade (GATT): agreement established to lower trade barriers, such as high tariffs on imported goods and restrictions on the number and types of imported precuts that inhibit a free flow of goods across boarders - World Trade Organization (WTO): replaces the GATT in 1994 o Differs from the GATT in that the WTO is an established institution based in Geneva, Switzerland, instead of simply an agreement o Represents the only international organization that deals with the global rules of trade among nations - International Monetary Fund (IMF): establish as a part of the original GATT; primary purpose is to promote international monetary cooperation and facilitate the expansion and growth of international trade - Work Bank Group: a development bank that provides loans, policy advice, technical assistance and knowledge sharing services to low-and-middle income countries in an attempt to reduce poverty Assessing Global Markets (PEST) - Political/Legal - Economic Analysis - Socio-Cultural Analysis - Technology & Infrastructure Analyzing the Political and Legal Environment - Trade Sanctions: penalties or restriction imposed by one country over another country for importing and ex
More Less

Related notes for Management and Organizational Studies 2320A/B

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