Market Segment

                 TBS 804 Review for Exam

                       By Yuze Du

Chp 9:

Market segment--- buyers who have different needs, characteristics or behaviours – who might require separate products or services.

Segment provides:

1. Better understanding of a particular market
2. Improved techniques to predict consumer behavior
3. Clarity for marketing objective with target market.

Geographic segmentation--- Where they are, location-based marketing

Demographic segmentation--- Age and life-cycle stage

Psychographic segmentation--- Personality, lifestyle

Behavioural segmentation--- Benefits sought; User status; Usage rate; Loyalty status, Buyer-readiness stage;

Segment is viable:

1. Able to measure
2. Able to design a marketing mix to attract
3. Large to target with a separate market mix

Market targeting:

1. Evaluating market segments
2. Selecting target segments
3. Choosing a targeting strategy

Select target segment:

1. Undifferentiated
2. Differentiated
3. Concentrated
4. Micromarketing

Evaluating market segment:

1. Segment size and growth
2. Segment structural attractiveness
3. Company objectives and resources

Identify competitive advantage:

1. Product differentiation
2. Services differentiation
3. Personnel differentiation
4. Image differentiation

Chp 10:

Extending the goods and services classification：

1. Event marketing--- experiential -delivered over a period of time
2. Social marketing--- influence people’s ideas, attitudes and behaviour in order to improve their wellbeing
3. Political marketing--- political ideologies and their political parties
4. Cause marketing--- increases awareness
5. Non-for profit marketing--- Marketing to obtain a donation, bequest
6. Experience marketing--- customer participation and connection

Reciprocal value creation:

1. value is emergent in the interactions between supplier, firm, customer and market offering
2. The customer is at the centre of value creation

Individual product and services decisions:

1. Product attributes
2. Branding
3. Packaging
4. Labelling

Product Differentiation:

1. Conformance quality--- Meets the same consistently
2. Durability--- Length of product use
3. Reliability--- Will not malfunction
4. Repair ability--- How easy / cheap to repair
5. Style--- Look and feel

Packaging:

1. Often the last chance your brand has to influence/change purchase decision
2. Packaging Objectives are to identify the brand, provide protection during the transport, and product consumption

Functions of Labels:

▫ Identifies

▫ Grades

▫ Describes

▫ Promotes

Building and managing a product mix and product lines:

• Need Family:

The core need

• Product Family:

All the classes that can satisfy that need

• Product Class (or category)

A group of similar products within a family

• Product Line:

A group of similar products within a Class

• Product Type:

A group of similar type of product within a Line

• Item:

Specific product within a Type

Product-Line Length:

1. Profitability through growth/share = more lines
2. Profitability through premium = fewer lines

Marketing strategies for service firms:

1. The service profit chain
2. The extended service mix
3. Managing service differentiation
4. Managing service quality
5. Managing service productivity

The extended marketing:

▫ Innovation is becoming the norm

 People connect, discover, communicate and share.

 Technology influences behavior

Processes:

1. The process management ensures the availability and consistence of quality
2. Not just to receive orders and complaint management
3. To 'help' customers, and make the experience richer

Physical evidence:

1. branding and logos, the packaging of your products or the premises where a goods / services are provided

Branding:

A brand is just a name, a sign, or a symbol that distinguishes the products and services of one company from all others.

• Co-branding

The use of two brand names on the same product or service to leverage more brand equity in order to sell more of the product or service

▫ Same-company co-branding

▫ Joint-venture co-branding

Chp 11:

New-product development is risky, and many new products fail.

• a process for finding and growing successful new products.

• every product passes through several life-cycle stages

Each stage poses new challenges requiring different marketing strategies and tactics

To create successful new products, a company must understand its consumers, markets and competitors, and develop products that deliver superior value to customers.