MARKET SEGMENTATION | |
INTRODUCTION |
The main reason
why we have Segmentation is because we have so many types of customers.
The reason why Segmentation
has become important in teaching and learning about marketing is because
these groups of different customers have:
WTGR |
MRK 106 text
Chpt 8 (11th edition) Demographic
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Segmentation is not easy,
once you decide that it is necessary to do, you may find that it is challenging
to create these segments with any workable or meaningful definition
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Criteria
for Segmentation
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Criteria for
Segmentation
- things you have to think about in order to decide if a potential group is worthwhile being considered a "segment" 1. Homogenous
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Criteria
for Segmentation |
2. Heterogenous
- the people between the segments should be very different - right handed and left handed might not be worthwhile if you are talking about a market segment for a product like pull-on boots |
Criteria
for Segmentation
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3. Substantial
- the people in the segment should be large enough in number to be worthwhile - right handed men might be a large enough segment - right handed men, who wear glasses, and speak Spanish and right motorcycles might be too small - the group has to be large enough to "generate sufficient sales volume at a low enough cost to result in a profit " says Sommers 10th Ed. |
Criteria
for Segmentation
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4. Competition
Sommers 10th Ed. suggests that a company should target segments "where the numbr of competitors and their size are such that the firm is able to compete effectively" example - some people buy trucks, some SUVs and some cars and some mini-vans - some companies have a product segment devoted to truck buyers, like Ford - car companies, like Nissan and Toyota might be advised to avoid selling trucks in North America because the competition is intense and they might not make a profit |
Criteria
for Segmentation
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5. Resources
Sommers 10th Ed. suggests that a company should make sure the segment relates to the resources of the company. If the company can mfg. variations to fit its key demographics, great, but it should not take on additional demographics if it does not have the capability example - a lingerie company taking on plus sizes - which would mean reconfiguring the fabric pattern cut-out which would effect fabric cost, waste amounts, etc. |
A Powerpoint on Segmentation
"If you want to download Chpt Eight (re: 11th edition) to view it and print it out yourself, go here http://people.senecac.on.ca/tim.richardson/MRK106-9th-Edition/Chpt8~9thedition.ppt this powerpoint was still downloadable Oct 2007 (not in 2012) in 2012 use witiger.com/powerpoints/MRK106/segmentation.PPT and witiger.com/powerpoints/MRK106/segmentationprocess.ppt this powerpoint discusses - two basic types of markets - clustering - 4 criteria for determining if the segment is useful - criteria for segmenting - aggregating segments - VALS - values, attitudes, lifestyles - positioning |
Segmenting
done in "real life" Segmenting
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An example of a marketing
consulting company that provides advice on market segmentation
http://www.marketap.com/Segmentation.htm
marketap.com explained "Segmentation models developed to identify specific attributes of a customer group that are similar and dissimilar to others within the same group.... Segmentation model output is used to define and predict the success levels of sales & marketing initiatives.." |
Demographic
Segmentation
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Population information is
an important part of "Demographic Segmentation"
click here to see Demographic information on the population in Toronto http://www.thestar.com/news/immigration/gta_immigration_history.html (2001-2006) (link works in July 2015) Municipal http://www.toronto.ca/toronto_facts/diversity.htm (2006) Toronto Demographics Portal
http://www1.toronto.ca/wps/portal/co...default
(2011)
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Demographic
Segmentation
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Demographic Segmentation"
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.
MRK
106 text
Chpt 9 co-branding |
co-branding - the
joint marketing of two different products by two different companies to
the same target market segment
.
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Market
Segmentation Successes
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advanced technologies facilitating target market segmentation |
The basics of the story is, as Paul outlined in the first sentance "Social networking sites
and advances in mobile technology are giving advertisers an unprecedented
ability to focus their pitch to a very specific focus group: you."
"One of the greatest weaknesses of marketing is you don't know location, you don't know how close people are to your store... But if advertisements were tied to a phone's GPS, the consumer might get an ad telling them not only about a sale nearby, but how to get there...This could be the holy grail for advertisers, the next killer application," |
advanced technologies revealing privacy vulnerabilities |
While such a capability may be possible Richardson says "People become a little nervous if they think you know too much information about them...If you target them too closely, it can have an adverse or opposite effect," "Even when consumers know how and where the information is being obtained — for example, through a MySpace page or a Google search — there's still a sense that privacy has been violated," said Richardson. see
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added Feb 6th 2012
http://forums.crackberry.com/general-discussion-f2/blackberrys-target-market-segment-628600/
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