Lecture Marketing (12/e): Chapter 9 – Kerin, Hartley, Rudelius

Chapter 9 - Market segmentation, targeting, and positioning. After reading chapter 9, you should be able to: Explain what market segmentation is and when to use it; identify the five steps involved in segmenting and targeting markets; recognize the bases used to segment consumer and organizational markets; develop a market-product grid to identify a target market and recommend resulting marketing actions.

Copyright © 2015 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 9, YOU SHOULD BE ABLE TO: LO 9-1 Explain what market segmentation is and when to use it LO 9-2 Identify the five steps involved in segmenting and targeting markets LO 9-3 Recognize the bases used to segment consumer and organizational (business) markets 9­2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 9, YOU SHOULD BE ABLE TO: LO 9-4 LO 9-5 Develop a market-product grid to identify a target market and recommend resulting marketing actions Explain how marketing managers position products in the marketplace 9­3 ZAPPOS.COM’S STRATEGY: SEGMENTS + SERVICE = “WOW”  A Clear Market Segmentation Strategy  Delivering WOW Customer Service 9­4 LO 9-1 WHY SEGMENT MARKETS? WHAT MARKET SEGMENTATION MEANS  Market Segmentation  Market Segments  Product Differentiation  Segmentation: Linking Needs to Actions  The Zappos Segmentation Strategy 9­5 FIGURE 9-1 Market segmentation links market needs to an organization’s marketing program through marketing mix actions 9­6 FIGURE 9-2 A market-product grid shows the kind of sleeper that is targeted for each of the bed pillows with a different firmness  Using Market-Product Grids 9­7 LO 9-1 WHY SEGMENT MARKETS? WHEN AND HOW TO SEGMENT MARKETS  One-Size-Fits-All Mass Markets No Longer Exist  One Product and Multiple Market Segments  Multiple Products and Multiple Market Segments 9­8 LO 9-1 Sporting News Baseball Yearbook What market segmentation strategy is used? 9­9 LO 9-1  WHY SEGMENT MARKETS? WHEN AND HOW TO SEGMENT MARKETS Segments of One • Mass Customization • Build-to-Order (BTO) 9­10 SEGMENTING AND TARGETING MARKETS LO 9-4 STEP 3: DEVELOP A MARKET-PRODUCT GRID AND ESTIMATE THE SIZE OF MARKETS  Forming a Market-Product Grid  Estimating Market Sizes: FIGURE 9-A 9­26 FIGURE 9-9 Selecting a target market for your Wendy’s fast-food restaurant next to an urban university (target market is shaded) 9­27 LO 9-4  SEGMENTING AND TARGETING MARKETS STEP 4: SELECT TARGET MARKETS Criteria to Use in Selecting Target Markets • Two Types of Criteria  Those That Divide a Market into Segments  Those That Actually Pick the Target Segments 9­28 LO 9-4  SEGMENTING AND TARGETING MARKETS STEP 4: SELECT TARGET MARKETS Criteria to Use in Selecting Target Markets • Market Size • Expected Growth • Competitive Position • Cost of Reaching the Segment • Organizational Compatibility 9­29 LO 9-4  SEGMENTING AND TARGETING MARKETS STEP 4: SELECT TARGET MARKETS Choose the Products & Segments • No Breakfast • Four Student Segments Only 9­30 LO 9-4  SEGMENTING AND TARGETING MARKETS STEP 5: TAKE MARKETING ACTIONS Wendy’s Segmentation Strategy Now • Day Commuters • Between-Meal Snacks • Dinners to Night Commuters  Keeping an Eye on Competition  Future Strategies for Wendy’s 9­31 FIGURE 9-10 Advertising actions to market various meals to a range of possible market segments of students 9­32 LO 9-4  SEGMENTING AND TARGETING MARKETS STEP 5: TAKE MARKETING ACTIONS Apple’s Ever-Changing Segmentation Strategy Apple’s 1984 Ad  Market-Product Synergies: A Balancing Act • Marketing Synergies • Product Synergies 9­33 LO 9-4 MARKETING MATTERS Apple’s Segmentation Strategy 9­34 LO 9-5 POSITIONING THE PRODUCT  Product Positioning  Product Repositioning  Two Approaches to Product Positioning • Head-to-Head Positioning • Differentiation Positioning  Writing a Positioning Statement 9­35 LO 9-5  POSITIONING THE PRODUCT Product Positioning w/ Perceptual Maps • Identify Important Attributes for a Product or Brand Class • Customers’ Ratings of Competing Products or Brands on These Attributes • Customer’s Ratings of the Company’s Products or Brands on These Attributes • Reposition the Company’s Products or Brands in the Minds of Consumers 9­36 LO 9-5 POSITIONING THE PRODUCT  Perceptual Map  A Perceptual Map to Reposition Chocolate Milk for Adults • Identify Important Attributes for Adult Drinks • Discover How Adults See Competing Drinks • Discover How Customers See Chocolate Milk • Reposition Chocolate Milk to Make It More Appealing to Adults 9­37 FIGURE 9-B A perceptual map of the location of beverages in the minds of American adults 9­38 FIGURE 9-11 The strategy American dairies are using to reposition chocolate milk to reach adults 9­39 VIDEO CASE PRINCE SPORTS, INC.: TENNIS RACQUETS FOR EVERY SEGMENT 9­40 ... Frequency Marketing  80/20 Rule 9 16 FIGURE 9- 4 Segmentation bases, variables, and breakdowns for U.S consumer markets 9 17 LO 9- 3 MARKETING MATTERS To Which “Flock” Do You Belong? 9 18 FIGURE 9- 5... Zappos Segmentation Strategy 9 5 FIGURE 9- 1 Market segmentation links market needs to an organization’s marketing program through marketing mix actions 9 6 FIGURE 9- 2 A market-product grid shows... (business) markets 9 2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 9, YOU SHOULD BE ABLE TO: LO 9- 4 LO 9- 5 Develop a market-product grid to identify a target market and recommend resulting marketing