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Chapter 7

MKT 100 Chapter Notes - Chapter 7: Swot Analysis, Railways Act 1921, Micromarketing


Department
Marketing
Course Code
MKT 100
Professor
Laila Rohani
Chapter
7

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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
Geographic Segmentation
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
groups
Demographic segmentation
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.
Psychographic Segmentation
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
they buy

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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.
Behavioural Segmentation
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
service
Loyalty segmentation is a strategy of investing in retention to retain most profitable
customers
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
geodemographic segmentation
PSYTE cluster is the grouping of all neighbourhoods in Canada into 60 different
lifestyle clusters
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