ADV 318J Chapter Notes - Chapter 6: Citi Bike, Doritos, Market Segmentation
Document Summary
Can"t advertise to everyone so they need to: Segment: piece what makes the most sense for their brand. Position: giving their brand a certain meaning relative to their competitors. All three together is called stp marketing. Increasing amnt of ipb professionals are asked to help. Ex: hilton, variety of hotels targets different things. First step = market segmentation = breaking down large broader markets into more manageable submarkets/customers segments. Heavy/committed/lead users: users that will purchase much more and more frequently than others. Part of top quintile (20 percent of users by volume) Need to target casual users by inviting them to try the product (ex: citi. Method has some downsides because devoted users may not need any encouragement to use the product, takes attention + resources away from those who need it. Switchers: consumers who often buy whatever is on sale + choose products based on coupons, can be costly target segment and can affect category profitability.
