MKT 100 Chapter Notes - Chapter 7: Ideal Point, Micromarketing, Mass Customization
28 Jun 2018
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MKT Chapter 7 - Segmentation, Targeting and Positioning
Segmentation-targeting-positioning process
Step 1 - establish overall strategy or objectives
Articulate the mission and the objectives
Step 2 - Segmentation Bases
Develops descriptions of the different segments, their needs/wants, and
characteristics
Geographic segmentation - the grouping of consumers on the basis of
where they live
Demographic segmentation - according to easily measured, objective
characteristics (age, gender, income, education)
Psychographic segmentation - how consumers describe themselves, allows
people to describe them, behaviour
oSelf values - goals for life, overriding desired that drive how a person
lives their life
oSelf concept - image a person has on themselves
oLifestyles - way a person lives their life to achieve goals
oVALS - psychographical tool developed by strategic business insights,
classifies consumers into 8 segments
Innovators, thinkers, believers, achievers, strivers,
experiencers, makers or survivors
Behavioural segmentation - groups consumers based on the benefits they
derive from products or services, their user status, and their loyalty
oBenefit segmentation - groups consumers based on the benefits they
derive from products or services
oLoyalty segmentation - strategy of investing in retention and loyalty
initiatives to retain the firm’s most profitable customers
Geodemographic segmentation - the grouping of consumers on the basis of
a combination of geographic, demographic and lifestyle characteristics
oPSYTE clusters - the grouping of all neighbourhoods in Canada into
60 different clusters
Step 3 - Evaluate segment attractiveness
Is the segment worth pursuing
Identifiable
oDetermine who is within their market to be able to design products or
services to meet their needs
Reachable
oThe best G or S cannot have any impact if that market cant be reached
through persuasive communications
Responsive
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MKT 100 Full Course Notes
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Document Summary
Mkt chapter 7 - segmentation, targeting and positioning. Step 1 - establish overall strategy or objectives. Develops descriptions of the different segments, their needs/wants, and characteristics. Geographic segmentation - the grouping of consumers on the basis of where they live. Demographic segmentation - according to easily measured, objective characteristics (age, gender, income, education) Innovators, thinkers, believers, achievers, strivers, experiencers, makers or survivors. Geodemographic segmentation - the grouping of consumers on the basis of a combination of geographic, demographic and lifestyle characteristics: psyte clusters - the grouping of all neighbourhoods in canada into. Identifiable: determine who is within their market to be able to design products or services to meet their needs. Reachable: the best g or s cannot have any impact if that market cant be reached through persuasive communications. Responsive: customers in the segment must react similarly and positively to the firm"s offering. Substantial and profitable: measure the sixe and growth potential.
