MKT 100 Chapter Notes - Chapter 7: Swot Analysis, Railways Act 1921, Micromarketing
This preview shows pages 1-2. to view the full 6 pages of the document.
Marketing: MKT100 Chapter 7 Notes
Ch. 7: Segmentation, Targeting & Positioning
The Segmentation-Targeting-Positioning Process
Step 1: Establish Overall Strategy or Objectives
•Articulate mission and the objectives of the company’s marketing strategy
•Segmentation strategy must be consistent with objectives as wells as current
situation – SWOT Analysis
Step 2: Segmentation Bases
•Formal approach to segment the market
•Organizes consumers into groups of where they live, either by country, region, areas
within a region, climate or topography, etc.
•Marketers sometimes make adjustments to meet needs of smaller geographic
•Grouping of consumers by easily measured, objective characteristics such as age,
gender, income, education, race, occupation, religion, marital status, family size,
family life cycle, and home ownership.
•Delves into how consumers describe themselves; allows people to describe
themselves by using those characteristics that help them choose how they occupy
their time and what underlying psychological reasons determine these choices.
•Marketers determine (through demographics, buying patterns and usage) into which
segment an individual consumer falls
•For example, a person might have a strong need for inclusion or belonging, which
motivates them to seek activities that involve others, which influences the products
Only pages 1-2 are available for preview. Some parts have been intentionally blurred.
•Determining psychographics involves knowing and understanding 3 components:
self-values self-concept, and lifestyles.
•Self-values are life goals, not just goals one wants to accomplish in a day.
•Refers to overriding desires that drive how a person lives his or her life
•Self-concept is the image people have of themselves
•A person who has a goal to belong may see, or want to see themselves as fun-
loving, gregarious type whom people wish to be around.
•Lifestyles are the ways people live to achieve their goals
•Someone with a strong sense of belonging will probably live in a well-populated area
that allows for many activities
•The most widely used psychographic system is the VALS, owned and operated by
Strategic Business Insights (SBI)
•VALS is a tool that classifies consumers into 8 segments: Innovators, Thinkers,
Believers, Achievers, Strivers, Experiencers, Makers or Survivors.
•Groups consumers on the basis of benefits they derive from products or services,
their usage rates, their user status, and their loyalty.
•Benefit segmentation looks at the benefits consumers derive from a product or
•Loyalty segmentation is a strategy of investing in retention to retain most profitable
•Usage rates: heavy users, regular users, light users, occasional users
•User Status: Current users, ex-users, potential users
Using Multiple Segmentation Methods
•A combination of geographic, demographic and lifestyle characteristics is called
•PSYTE cluster is the grouping of all neighbourhoods in Canada into 60 different
You're Reading a Preview
Unlock to view full version