Transcript Beckman PowerPoint Presentation

Slide 1
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 2
People with similar needs wants
Marketing Mixes (4P’s) are developed for
specific target markets
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 3
Don’t just focus in the product
- some people define the market in terms of
products they sell, instead of in terms of the
satisfaction they bring
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 4
Two Basic Types of markets
Generic Market
• broadly similar needs
• sellers offer competitively different ways of
satisfying the needs
Product- Market
Page 227
• very similar needs
• sellers offer close substitute ways
• - not much difference between the product
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 5
Market Segmentation
Two Step Process
• 1. Naming broad product-markets
• 2. Segmenting these to select target
markets
PAGE 231
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 6
Clustering
• Marketing-Oriented managers know that
segmenting involves clustering people
with similar needs into a market
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 7
Market Segmentation
Four Criteria for determining if the
segment you have is useful
1. Homogenous
2. Heterogenous
3. Substantial
4. Operational
Page 233
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 8
Market Segmentation
Four Criteria
1. Homogenous
- the people within the segment are all similar
2. Heterogenous
- the people between segments should be very
different
3. Substantial
- the segment should have enough people to
make to worthwhile
4. Operational
- the dimensions should be useful
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
Page 233
ppt slides created
and Copyright by Tim Richardson
Slide 9
Segmenting
TR - the text talks about “dimension” such as
geographic, demographic and benefits offered
The proper terminology to plainly discuss the 4
ways of segmenting is
Demographic
Geographic
Psychographic
Benefit
the following diagram comes from another text and
may help you understand this more clearly
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 10
Market Segmentation
Figure 3.1 Bases for Market Segmentation
4 main Categories
From the Beckman, Kurtz, Boone text
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 11
Criteria for Segmenting
Single Target Market approach
Multiple Target Market approach
Combined Target Market approach
Page 235
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 12
Criteria for Segmenting
Combined Target Market approach
Eg. A company that makes garlic
flavoured cream cheese
competition is companies that use single
market approach and make
roasted garlic and garlic and herb cream
cheese
Page 236
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 13
Segmenting
“...Should you Segment, or Combine …”
the text says it is better to segment
- also, depends on which gives you the
best profit
TR - it also depends on what
competition does !
Page 238
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 14
Profit is the Balancing Point
• In trying to determine whether you
should divide the market up into many
segments, and sell variations of the
product to different segments, or sell
the same product to everybody, the
deciding factor is based on which
option will give you the most profit
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 15
Market Segmentation
“… cost considerations encourage more
aggregating to obtain economies of
scale
… demand considerations suggest less
aggregating to satisfy needs more
exactly…” …”
what does this mean ?
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 16
Market Segmentation
“… Segmenting is an aggregating process
…”
what does this mean ?
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 17
Market Segmentation
Aggregate
- 1. collected; collective, total 2. Sum
total 3. Unite
- Oxford Pocket Dictionary
TR. - all the stuff together
Aggregating
- putting things together which are similar
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 18
Market Segmentation
Aggregating
“… how far should the aggregating go …”?
- sometimes not everybody will fit, you can
leave them out, or just call it “other”
“… these people are simply too few … may
have to be ignored unless they are willing to
pay a high price for special treatment…”
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 19
Int’l Mktg Requires MORE segmentation
• The additional differences of other
cultures and languages can make
segmentation more complicated
• That is to say, your decision to divide up
the market may be based on things
which are not the same as in North
America
Page 243
• Information, on which to base your segmentation, is
harder to obtain
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 20
More Sophisticated Techniques
• VALS - Values, Attitudes and Lifestyles
(page 244)
• VALS and Goldfarb approach are based on a
segmentation approach known as
psychographics, or lifestyle analysis
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 21
Psychographic Segmentation
Page 105 in 8th edition
Goldfarb Segments
1. Day2day watchers
2. Old fashioned Puritans
More traditional
3. Responsible survivors
Page 222, 9th edition
Page 245, 10th edition
4. Joiner-Activists
5. Aggressive Achievers
6. Disinterested Self-Indulgents
Less traditional
Page 49~51 in
Beckman, Boone
http://www.goldfarbconsultants.com/who.html
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 22
Clustering Techniques
• “… trying to find similar patterns with sets of
data …”
• often done with computers that have access
to quite a bit of information on each target
• the computer runs a program designed to find
common information and helps the analyst
determine what the specifics of a new
segment might be
Page 247
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 23
Trade - off Analysis
• “… another computer based approach…”
• companies do this to figure out what things a
customer is willing to pay more for, and which
things are not so important so you can stop
doing it
• ex. In the text is Marriott hotels
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 24
Simply - how customers view the firm and its
product
Mercedes, position is luxury
Walmart, position is lowest price, quality not so
bad
Landrover, position is very very reliable
Harvey’s - have it your way
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
Page 248
ppt slides created
and Copyright by Tim Richardson
Slide 25
Burger King - your way
Home Depot - customer service - older advisors
Zellers law toy land
SONY - maintain high price position
Volvo - accident safety
HMV - no risk refund
BKG - customized shoes
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 26
Browns shoe stores high price, funky shoes
Costco
Shoppers - Health Watch System
Saturn - above average customer service
Winners - brand names at generic name prices
Honest Eds - lowest no matter what
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 27
Changing your position, to get better reaction,
might mean
1. Changing the Product (one of the 4 P’s)
2. Changing the Price
3. Adding a new product line
4. Change the advertising (Promotion)
eg. Women in truck commercials
eg. 7UP - the Un-cola
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson
Slide 3-8
Percentage Distribution of the
Population of Canada by Province
Slide 28
Geographic Segmentation
+, Ontario
contains
52% of
foreign born
people in
Canada
Page 38
To accompany
Basic Marketing, Shapiro, 10th Cdn Ed.
ppt slides created
and Copyright by Tim Richardson