1. Chapter 7 Market Segmentation, Targeting, and Positioning for Competitive Advantage
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3. Steps in Market Segmentation, Targeting, and Positioning (Fig. 7-1)
4. Step 1. Market Segmentation Levels of Market Segmentation Dividing Markets into Smaller Segments that Can be Reached More Efficiently And Effectively With Products and Services That Match Their Unique Needs. Mass Marketing Same product to all consumers (no segmentation, i.e Coca-Cola at one time) Segment Marketing Different products to one or more segments (some segmentation, i.e. Marriott)
5. Step 1. Market Segmentation Levels of Market Segmentation Niche Marketing Different products to subgroups within segments (more segmentation, i.e. Standard or Luxury SUV’s) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Local Marketing Tailoring brands/promotions to local customer groups, i.e Sears Individual Marketing Tailoring products and programs to the needs of individual customers, i.e. Dell
6. Step 1. Market Segmentation Geographic Segmentation Density or Climate City or Metro Size World Region or Country
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8. Step 1. Market Segmentation Psychographic Segmentation Social Class Lifestyle Personality Divides Buyers Into Different Groups Based On:
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11. Segmenting Business Markets Operating Characteristics Purchasing Approaches Situational Factors Personal Characteristics Business Marketers Use Many of the Same Consumer Variables, Plus:
12. Segmenting International Markets May Also Use Intermarket Segmentation Factors Used to Segment International Markets Geographic Location Economic Factors Political and Legal Factors Cultural Factors
19. Step 3. Choosing a Positioning Strategy Step 2. Choosing the Right Competitive Advantage Step 3. Communicating and Delivering the Chosen Position Step 1. Identifying Possible Competitive Advantages
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21. Identifying Possible Competitive Advantages Services Differentiation i.e. Delivery, Installation, Repair Services, Customer Training Services Product Differentiation i.e. Features, Performance, Style & Design, Attributes People Differentiation i.e. Hiring, Training Better People Than Competitors Do Image Differentiation i.e. Symbols, Characters Channel Differentiation
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24. Choosing the Right Competitive Advantages Criteria For Determining Which Differences To Promote Affordable Superior Profitable Preemptive Distinctive Important Communicable Unique Selling Proposition
Drivers for a new proposed sports car. This segment could be measured in general and the number could be approximated from secondary sources (such as from car clubs, automobile companies, interests--such as auto shows, or prior ownership of vehicles). Exact measurement would be difficult. The accessibility of these consumers would be difficult except through their service providers or interest areas. However, promotions (such as magazine, outdoor advertisements, or auto shows) can be constructed. The number is thought be substantial among youth and the affluent, however, this segment would have to be tied to desires for automobiles in general to be useful. An interesting side question would be whether these consumers are gender or geographically concentrated. What role would life style play?
Underpositioning – failing to ever really position the company at all. Overpositioning – giving buyers too narrow a picture of the company. Confused positioning – leaving buyers with a confused image of a company.