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Segment
- 6. Trainers that meet the special needs of women and their feet.
- 10. Value segmentation – Pareto - illustrations Brand User Loyal Switchers 20% 20% Revenue/Profits . 80% The 80/20 rule 20% 40% 20% Semi-Loyal Source: Garth Hallberg Competitive Brand User Non User of Category
- 12. Positioning Low Price Consistent quality Not accessible convenient accessible Brand conscious premium A B D C
- 18. % Distribution of Canadian Population by Province 2001
- 19. Provincial and Territorial Populations, 1981, 1991, 2001 POPULATION (THOUSANDS) Source: Statistics Canada Website http://geodepot.ca/English/Pgdb/People/Population/demo05.htm. Region 1981 1991 2001 Newfoundland 568 568 513 Prince Edward Island 123 130 135 Nova Scotia 847 900 908 New Brunswick 696 724 729 Quebec 6 438 6 896 7 237 Ontario 8 625 10 085 11 410 Manitoba 1 026 1 092 1 120 Saskatchewan 968 989 979 Alberta 2 238 2 546 2 975 British Columbia 2 744 3 282 3 908 Yukon 23 28 29 Northwest Territories 46 36 37 Nunavut n/a 21 27 Canada 24 343 27 297 30 007
- 20. Urban - Rural Population Distribution, 1871-2001
- 22. Population Projections by Age Group Demographic segmentation : dividing consumer groups by e.g. sex, age, income, occupation, education, household size & stage in family life cycle
- 29. Percentage Annual Expenditures by Income Groups, 1999
- 33. VALS TM Network Source: SRI Consulting Business Intelligence http://www.sric-bi.com/VALS/presurvey.shtml
- 35. High-end watches for which life-style segments?
- 38. Band-Aid offers “flex” as a benefit to consumers.
- 39. Benefit Segmentation Applied to Yogurt Attributes of Yogurt Source: Adapted from Marco Vriens and Ter Hofseted, “Linking Attributes, Benefits, and Consumer Values,” Marketing Research, Chicago, Fall 2000, V. 12(3) pp. 4-10. Reprinted with permission by the American Marketing Association. Provides choice for family members X X Convenient to use X Tastes good X X Good quality X X X X Healthy X X X X Helps digestion X Helps diet X Spend less money X BENEFITS SOUGHT FROM YOGURT Individually packaged With fruit High- priced Mild Organic Contains bio-bifidus Low fat Low- priced
- 45. Hypothetical Middle Adult Segment for Radio Early Retiree Hourly Employee Business Owner Professional Information X X X Entertainment X X Companionship X Desired Benefit Middle Adults
- 46. Hypothetical Middle Adult Segment for Information Radio Early Retiree Hourly Employee Business Owner Professional Breaking news X X Political commentary X X Financial market commentary X X X Desired Information Focus Advice X X Weather X X Call-in X Gossip X Middle Adults
- 47. Hypothetical Positioning Map: CBC versus Commercial Radio Informational Music Challenging Entertaining Commercial Talk Radio Commercial Talk Radio *As it Happens CBC local* *This Morning After Hours* *CBC News *Ideas Disc Drive* Take 5*
Editor's Notes
- Similar principle also applies to geographical area’s. Not every local market is valuable to a manufacturer. Not every local market holds the same potential for a product. The competition might not be as severe in every local market. So again , it really makes sense to be able to identify the most and least valuable geographical markets and to execute your sales and marketing strategy based on that.
- Summary Overview Computer-aided methods afford marketers additional help in segmenting markets. The ability of the computer to record, sort, recombine, and analyze a great many variables relating to consumer behaviour at the same time allows marketers to develop much more sophisticated market segments. More Sophisticated Techniques for Segmentation and Positioning Clustering . Clustering techniques try to find similar patterns within sets of data. Patterns of behaviour can be combined into new needs analysis and product design and marketing communications can focus on how these needs can be filled. Database Sorting . Past customer behaviour is often the source of information about new purchase opportunities or identification of cyclical buying habits. Teaching Tip: Database sorting is especially helpful in providing services. For example, a financial advisor enters a great deal of information about a client in a database. By contacting the client before key events, such as an wedding anniversary, the advisor demonstrates to the client the importance of their continuing relationship and how well the advisor has internalized what is important to the client. Differentiation . Differentiation refers to how the marketer tries to distinguish her or his offer in the marketplace -- how it is set off from the competition in hopefully meaningful ways. Positioning . Positioning refers to how customers think about proposed and/or present brands in a market. Marketing managers must always remember that it is the customer’s perception of where a product or brand is in relation to the other choices that is important.