MKT 100 Chapter Notes - Chapter 6: Swot Analysis, Marketing Mix, Sobeys

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Published on 1 Jun 2017
School
Ryerson University
Department
Marketing
Course
MKT 100
Professor
Chapter 6: Segmentation, Targeting, and Positioning
The Segmentation, Targeting, Position Process
Step 1: Establish Overall Strategy or Objectives
- Consistent with mission statement
- Derived from mission and current state
- Based on the current assessments from SWOT analysis
Step 2: Segmentation Bases
- Various segmentation methods or bases
-Geographic Segmentation:
Divide market into separate geographic units
Countries, regions provinces, cities, neighbourhood’s, climate, etc.
Develop appropriate marketing programs
The grouping of consumers on the basis of where they live or their geography
Geographic Information Software (GIS) aids in such segmentation  Many firms
use regional brands of popular products
Understanding regional preferences can define a company’s success or failure
Example:
oNational grocery stores such as Sobeys & Loblaw’s will sell specific food
products that cater to the demographic/culture of the people that
frequent the neighbourhood store
-Demographic Segmentation:
The grouping of consumers according to easily measured, objective
characteristics such as age, gender, income and education
Most common method
Divide market into groups based on:
oGender, age, ethnic group, family lifecycle stage, household type, income,
other  ex. Occupation, education, religion
Census is an excellent source of segmentation data  Statistics Canada, offers
rich, free source of information about various consumers that suggests
segmentation possibilities
-Psychographic Segmentation:
How consumers describe themselves
oSelf-values, self-concept, lifestyles
Not just businesses segment their customers, also helps organizations that
counsel drug addicts or other at risk-groups
Many parents are becoming concerned about safety issues when their children
go online, this segment responded to information and tools to effectively
manage internet use in the home to teach their kids to be smart
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Vals Framework
- VALS is a psychographic tool developed by Strategic Business Insights, that classified
consumers into 8 segments: Innovators, thinkers, believers, achievers, strivers,
experiencers, makers or survivors
- Enables firms to identify target segments and underlying motivations
- Example:
Few business students likely belong to the Believers category, but Arts majors
very well may
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-Behavioural Segmentation
Behavioural segmentation groups consumer on the benefits they derive from
products or services, their usage rate, their loyalty and the occasion
Firms encourage loyalty in various ways, such as airline mileage or hotel point
reward programs
Step 3: Evaluate Segment Attractiveness
-Identifiable
Firms must determine who is within their market in order to be able to design
products or services to meet the target markets needs
Women can be identified to be in many different segments, these women would
appear in the same segment if the segmentation variable were gender (female)
but in individual segments based on race or lifestyle
oThey also may be in different geographic or income segments
oWho is in their market? Are the segments unique? Does each segment
require a unique marketing mix?
-Reachable
The best product or service cannot have any impact on the consumer if that
market cannot be reached or accessed through persuasive communications and
product distribution
Consumers must know the product or service exists, understand what it can do
for them and recognize how to buy it
The internet has enabled more people to be reached more easily, but various
areas around the world simply cannot be served bc they aren’t accessible to
marketing messages or bc there isn’t adequate distribution
Know the product exists  Understand what it can do  Recognize how to buy
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Document Summary

Based on the current assessments from swot analysis. The grouping of consumers on the basis of where they live or their geography. Geographic information software (gis) aids in such segmentation many firms use regional brands of popular products. Understanding regional preferences can define a company"s success or failure. Example: national grocery stores such as sobeys & loblaw"s will sell specific food products that cater to the demographic/culture of the people that frequent the neighbourhood store. The grouping of consumers according to easily measured, objective characteristics such as age, gender, income and education. Divide market into groups based on: gender, age, ethnic group, family lifecycle stage, household type, income, other ex. Census is an excellent source of segmentation data statistics canada, offers rich, free source of information about various consumers that suggests segmentation possibilities. How consumers describe themselves: self-values, self-concept, lifestyles. Not just businesses segment their customers, also helps organizations that counsel drug addicts or other at risk-groups.

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