Download Market Segmentation

Lecture Review
DEFINITIONS, MARKETING PLAN & SEGMENTATION
Marketing definitions &
strategies
Marketing Strategy
•Achieving
•Target
marketing goal
market
•Exchange
vs value
Strategic marketing process
Allocating marketing mix- 4Ps
Product
Price
Promotion
Place
Market share
Revenue of firm/ revenue of industry
Relative market share – how our firm’s does against our leading competitor
Mission
Where is our market?
What product do we serve?
Who are our customers?
How are we different from others?
Believable
Marketing Dashboard
Visual display of all the marketing information's
Helpful for managers to have information at a glance
Regularly updated
Market Segmentation
Aggregating prospective buyers
Have similar wants/needs
Respond similar to marketing actions
Marketing Plan
Marketing Plan

What is a Marketing plan?

action-oriented document

set objectives for the marketing and
promotion of business

needs to be followed, monitored and
updated

regularly evaluate and control a marketing
plan
A Perfect Marketing plan

sensible and relevant

accurate and realistic targets



Fulfills Five Purposes

Present and future situations of the
organization

Specifies expected outcomes (goals and
objectives)

keep business prepared for unexpected
events or promotions by competition
Describes the specific actions that are to take
place

Assigns responsibility for each action
spot possible threats to business, and
prepare for ways to minimize or
capitalize on them

Identifies the resources needed to carry out
the planned actions

Permits the monitoring of each action and its
results so that controls may be implemented
customize to suit business and its
objectives
Marketing plan – Key Areas

Price

Place

Product

Promotion

SWOT

Time
Organizational Aspects of the Marketing Plan

Top managers ask two questions:

Will the marketing plan achieve the desired
marketing, business unit, and corporate goals
and objectives?

Are there alternative uses of resources that
would better meet the firm’s objectives?
Situation Analysis - External


Know the competition

Why are they good?

Why are they bad?

What can we learn?
Monitor factors from outside

Changes in the market

PEST
Situation Analysis - Customer

Identify your target

Know your current customers

Identify potential new customers

Who, what, when, where, why, and
why
Implementation

As the strategy is developed, a
concept for how to implement it
should be formed

Communication is often the biggest
obstacle to implementing an
effective marketing plan – internal
culture must support the marketing
plan

What will be done? How? When? By
Who? At what cost?
Control

Once the plan has been implemented, it should
be updated based on some control/feedback
mechanisms

Control in the context of a marketing plan is the
monitoring and guidance of implementation
progress… and feedback for future plans

Formal

Informal

Financial
Segmentation (what and why)

What is segmentation and why?

Definition: Dividing the market into distinct groups who might require separate marketing mixes

People have varying wants and needs

Buy in very different ways
•
Online, mall, catalog, rent-to-own, big box, etc.

Belong to multiple Segments at the same time
•
What roles do you have?
•
Mother, daughter, spouse, cook, health care provider, business executive, home owner, taxpayer, etc.
Segmentation and Markets
Market, segment and target market
x
x
x
x
x
xx
x
x
x
x
x
x
Market: People or organizations with needs or wants and
the ability and willingness to buy.

Segment: A subgroup of people or organizations sharing
one or more characteristics that cause them to have similar
product needs.

Target Market: A group of people or organizations for
which an organization designs, implements, and maintains
a marketing mix intended to meet the needs of that group,
resulting in mutually satisfying exchanges.
x
x
x x

Segmentation Bases
•
Behavioral
•
•
Psychographic
•
•
•
Measurable Consumer
Characteristics
Demographic
Geographic
Marketers divide buyers into groups on the basis of their
knowledge of, attitude toward, use of, or response to a product
By their Needs and benefits
By the Decision roles such as Initiator, Influencer, Decider,
Buyer, User
Personality traits
Lifestyle
Values
Age and Life-cycle Stage, Life Stage, Gender
Income, Generation, Race and Culture
• Geographical units:
Nations, states, regions, counties, cities, or
neighborhoods
• Other classifications:
Education and affluence, Family life cycle, Urbanization,
Race and ethnicity
Bases for segmenting Business
Markets
Demographic
Operating Variables
Purchasing Approach
Industry, company size, location
Technology, user status, customer capabilities
Power structure, nature of existing relationship
Situational Factors
Urgency, specific application, size of order
Personal Characteristics
Buyer-seller similarity, loyalty, risk attitude
Effective Segment Rating Criteria
Measurable
•Size,
buying power, profile
Substantial
•Large
enough to merit own product/mix
•Growth
pattern
Accessible
•Reach
w/o waste
Differentiable
•Respond
differently to different offerings
Actionable
•Media,
message, images, spokespeople, etc.
 APPLICATION |Case Study
Snapchat Spectacles – CLASS DISCUSSION:
What is the market segmentation
for Snapchat Spectacles?
Snapchat Spectacles – CLASS DISCUSSION:
DO you think segmentation was
different for Google Glass?
Snapchat Spectacles – CLASS DISCUSSION:
WHAT are the key differences between
Success and failure?
Snapchat Spectacles vs. Google Glass
Snapchat Spectacles – CLASS DISCUSSION:
HOW do you think Snapchat
Spectacles marketing plan differed
from Google Glass?
Market Segmentation – Risk vs
Reward
Harvard Business study found that 85% of
30,000 new product launches failed
because of poor market segmentation.
With each level of narrowing your focus, you
exclude other potential customers from
marketing efforts.
Market Segmentation – What it’s
not
Is there any place further from an
ocean than Mitchell, SD?
Where’s the ROI?
Targeted advertising in a state
where agriculture is the #1 industry,
with beef being the main producer
of income.
Hunting and Fishing are popular
tourist attractions.
Mitchell, South Dakota - November 27, 2016
Market Segmentation – Politics
The number one goal of a marketing plan is to attract more customers!
Differentiation is important, but avoid alienation!
Politics and business do not make good bedfellows.
- Grubhub CEO comments
Mitt Romney’s 47%
Hillary Clinton’s “Basket of Deplorables”
Can’t assume demographics define the audience.
Market Segmentation – What it’s
not
2012 Vote % 2016 Vote %
Democrat 38111341 66 29939251 49
Don’t just grow the piece of the pie, grow the pie!
Republican 19214513
34
31108968
51
Marketing Efforts Gone Bad
Marketing Efforts Gone Bad
Marketing Efforts Gone Bad
Questions?
Comments?
Thank you!