1) i.d. appropriate targeting strategy 2) determine which segment variable to use 3) develop market segment profiles 4) evaluate relevant market segment 5) select specific target markets
defines ENTIRE market for a certain product as its target market
1) market must be homogenous 2) co. must maintain a SINGLE marketing mix to satisfy their costumer needs
ppl have diverse product needs
1) customer needs are heterogenous 2) segment is i.d.-able and divisible 3) 1+ segment has profit potential 4) co. has to be able to reach that chosen segment!
concentrated targeting strategy
advantages: 1) can generate LARGE sales volume w/ a single segment 2) co. w/ few resources can compete w/ larger co.'s
disadvantages: if segment's D for product decreases, so will co.
differentiated targeting strategy
target 2+ segments, make marketing mix for each segment
disadvantages: 1) MORE production processes, materials, skills = HIGHER production costs 2) HIGHER marketing costs
age, race, income, educ., etc.
urban/rural, climate, etc.
personality, motives, lifestyle, BEHAVIORISTIC (how consumer _uses_ the product
market segment profile
talks about similarities b/w potential customers, & diff b/w other market segments
total amount of a product for ALL firms in an industry which customers will purchase w/in a specified period
sales estimate measures co. sales potential based on general economic forecast
measures co. sales potential by est. HOW MUCH a potential buyer will purchase in a given time period
decisions & activities to create a certain CONCEPT of a product in customers _minds_
questioning a sample of consumers about their perceptions of products, brands, etc. w/ 2+ dimensions
bases for positioning
1) head-to-head 2) position to avoid competition (when your product is unique, or even when it's really similar) 3) avoiding competition when you want to avoid CANNiBALIZING your own product that's in the market
physically changing product, its P, distrib., promotion, aiming it at a different target market, etc.