BUS 343 Chapter Notes - Chapter 7: Groupon, Westjet, Micromarketing

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Published on 28 Dec 2016
School
Simon Fraser University
Department
Business Administration
Course
BUS 343
Professor
BUS343Chapter7Notes:
Segmentation,Targeting,andPositioning
Segmentationdividingamarketintodistinctgroupswithdistinctneeds,characteristics,orbehaviours
thatmightrequireseparatemarketingstrategiesormixes
Targetingtheprocessofevaluatingeachmarketsegment’sattractivenessandselectingoneormore
segmentstoenter
Differentiationactuallydifferentiatingthemarketoffertocreatesuperiorcustomervalue
Positioningarrangingforamarketofferingtooccupyaclear,distinctive,anddesirableplacerelative
tocompetingproductsinthemindsoftargetconsumers
MARKETSEGMENTATION
Throughmarketsegmentation,companiescanreachsmallersegmentsmoreefficientlyandeffectively
withproductsandservicesthatreachtheiruniqueneeds
GeographicSegmentationdividingamarketintodifferentgeographicalunits,suchasglobalregions,
countries,regionswithinacountry,provinces,cities,orevenneighbourhoods
(Ex.YukonBrewingbeerincansratherthanbottles).
DemographicSegmentationdividingthemarketintosegmentsbasedonvariablessuchasage,
gender,familysize,lifecycle,householdincome(HHI),occupation,education,ethnicorculturalgroup,
andgeneration
 Themostpopularbaseforsegmentingcustomergroupsbecauseconsumerneedsoftenvary
closelywithdemographicvariablesandeasiertomeasurethatmostothertypesofvariables
 Ageandlifecyclesegmentation:kids,familystatus,marriages,oldercouplewithnokids
GenderSegmentation:clothing,cosmetics,toiletries,magazines
 NowhaveHarleyDavidsonmotorcyclesforwomen,andmorefashionstuffformen
 HouseholdIncome(HHI)Segmentation:luxurybrandsforrichpeople,dollarstorechainsfor
poorpeople
Ethnicorculturalgroup:race,ethnicity,language;placeadvertisementsaccordinglyin
certainlanguagesforcertainareasdenseinacertainculture
PsychographicSegmentationdividingamarketintodifferentsegmentsbasedonsocialclass,
lifestyle,orpersonalitycharacteristics
 Luxurymarketmakingeverystepoftheexperienceexpensive;Amex
 PersonalitytargetpeoplewithadsthroughtheTVshowstheywatch
 RoyalCaribbeanisforadventureseekers;RegentSevenSeasisformaturecouples
 Peoplewhowatchgleearemoreemotionallyintense
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BehaviouralSegmentationdividingamarketintosegmentsbasedonconsumerknowledge,attitudes,
uses,orresponsestoaproduct(occasions,benefits,userstatus,userrates,loyaltystatus,readiness
stage,attitudetowardproduct)
 Thebeststartingpointforbuildingmarketsegments
Occasionsegmentationdividingthemarketintosegmentsaccordingtooccasionswhenbuyers
gettheideatobuy,actuallymaketheirpurchase,orusethepurchaseditem
Ex.holidaysHalloween,Christmas,MothersDay,CanadaDay
BenefitSegmentationdividingthemarketintosegmentsaccordingtothedifferentbenefits
thatconsumersseekfromtheproduct
Ex.NetflixoffereddifferentpricepointsfordifferentbundlesjustDVDsbymail,
DVDsandstreaming;nowonlystreamingisofferedbasedondemand
UserStatus:nonusers,exusers,potentialusers,firsttimeusers,regularusers
UsageRate:light,medium,heavyusage
Heavyusersaresmallpercentageofmarketbutaccountforhighpercentageoftotal
consumption
LoyaltyStatus:completelyloyal(Applescultfollowers),somewhatloyal(favour23brands),
noloyaltywantsomethingdifferenteachtime,orbuywhat’sthebestvalue/onsale;
Canlearnalotaboutweaknesseswhenlookingatloyalcustomersthatareshiftingaway
fromthebrand
Usingmultiplesegmentationbases
 Marketersoftenusemultiplesegmentationtypestogetbettersmaller,welldefinedtargetgroups
 “Hunters&Collectors,SavvySavers,DomesticBliss,SchoolDaze
 LGBTQisamarketsegmentweddingbusinessboomingwithlegalizationofgaymarriage
SegmentingBusinessMarkets
 Businessbuyerscanbesegmentedthesamewayasconsumers
 Additionalvariableslookedat:operatingcharacteristics,purchasingapproaches,situational
factors,personalcharacteristics
 Ex.AmericanExpresstargetsmerchants,corporations,smallbusinesses
 Companiessetupseparatesystemsfordealingwithlargerormultilocationclients
 Buyingbehaviourandbenefitsprovidethebestbasisforsegmentingbusinessmarkets
SegmentingInternationalMarkets
 Companiescansegmentinternationalmarketsbasedonmanyvariables:
 Geographiclocation:groupingcountriesbyregionsWesternEurope,PacificRim,
MiddleEast(assumesthatnationsclosetoeachotherhavemanycommontraits)
 EconomicFactors:populationincomelevels,overalleconomicdevelopment
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