1. marketing 300 discussion section
Week 4 Slides by Rahul Kamath, for Marketing 300, Fall 2009

2. announcements?

3. discussion question

4. group policy
Anyone still need to find a group?

5. micro-macro dilemma

6. personal benefits vs. social costs

7. personal benefits vs. social costs

8. personal benefits vs. social costs

9. personal benefits vs. social costs
trash mass twice the size of TEXAS!

10. personal benefits vs. social costs

11. personal benefits vs. social costs

12. personal benefits vs. social costs

13. personal benefits vs. social costs

14. question
Why does Progressive insurance offer customers a price quote for Progressive and for its competitors?

15. question
(hint: think about the purpose of the 4 Ps)

16. Segmentation

17. question

18. question

19. question

20. Segmentation
Different people have different needs and different uses for products within a category.
As a business, it’s important to know who might be interested in your product/service and why.
Why?

21. What is a segment? Segments/Submarkets
A relatively homogeneous group of customers who will respond similarly to a marketing mix.
Segments are based around NEED.

22. discussion question
Consider the student market for off-campus apartments in your city. Identify some segments that have different needs and determining dimensions. Then evaluate how well the needs in these market segments are being met in your geographic area. Is there an obvious breakthrough opportunity waiting for someone?

23. discussion question Need Qualifying dimensions
minimum requirements; without these, a consumer is not interested (“I ABSOLUTELY NEED THIS!”)
ex. a roof. If a house doesn’t have a roof, you probably won’t consider living there.
Determining dimensions
qualities that consumers ultimately choose on once they have a qualifying set (“THIS WOULD BE NICE TO HAVE, BUT I DON’T NEED IT”)
ex. I choose this house from the ones I liked because it has off-street parking

24. discussion question
Consider the student market for off-campus apartments in your city. Identify some segments that have different needs and determining dimensions. Then evaluate how well the needs in these market segments are being met in your geographic area. Is there an obvious breakthrough opportunity waiting for someone?

25. discussion question
Talk with your group about your ideas for a few minutes. Come up with three distinct segments with qualifying dimensions and a “breakthrough opportunity.”
WARNING! Think about students in terms of all relevant segmenting dimensions (NEEDS), not only in terms of their age or year. The latter will lead you down the wrong path.

26. discussion question Segment Need Qualifying Dimensions
Determining Dimensions
Luxury-seekers
Comfort, view, status
Amenities, nice view, cleaning service
Gym, heated parking lot

27. discussion question
Ready?

28. discussion question Segment Need Qualifying Dimensions
Determining Dimensions
Luxury-seekers
Comfort, view, status
Amenities, nice view, cleaning service
Gym, heated parking lot

29. discussion question Segment Need Qualifying Dimensions
Determining Dimensions
Luxury-seekers
Comfort, view, status
Amenities, nice view, cleaning service
Gym, heated parking lot
Budget-conscious
Low cost housing
Cheap rent, paid utilities
Close to campus
Socialites
Proximity to bars, ability to be loud
Cool neighborhood, near bars
Paid utilities
Families
Quiet, safety, good school district
Suburban, good schools, low crime area
Washer/Dryer in unit
discussion question

30. Sophomores and Juniors
what’s wrong with this?
Sophomores and Juniors
Seniors
Grad Students
MADISON HOUSING SEGMENTS

31. are all students the same?
we know that not everyone wants the same thing, even if they are in the same demographic
Seniors
Some students might want quiet, others might be looking for proximity to bars, others might want pets. These groups do not necessarily overlap. “Students” also leaves out non-students who might be looking for quiet, proximity to bars, etc.
People who want quiet
Budget conscious
People who want to party 24/7

32. People who want to party 24/7
what’s wrong with this?
Some seniors might want quiet, others might be looking for proximity to bars, others might want pets. These groups do not necessarily overlap.
“Seniors” also leaves out non-seniors who might be looking for quiet, proximity to bars, etc.
People who want quiet
Budget conscious
People who want to party 24/7

33. are all students the same?
by making “seniors” a segment, you are implying that all students want the same thing
Seniors
Clones
Some students might want quiet, others might be looking for proximity to bars, others might want pets. These groups do not necessarily overlap. “Students” also leaves out non-students who might be looking for quiet, proximity to bars, etc.

34. this is the right way Overall Market
Quiet Seekers
Budget conscious
Partiers
this is better because it divides overall market by needs, not by demographics

35. discussion question
Hey wait a minute! How come you said that “seniors” isn’t a segment but “families” is?

36. discussion question This isn’t an exact science. Use your intuition.
Probably most families are looking for similar things; students probably aren’t.
Homogeneous within (people within a segment very similar)
Heterogeneous between (people in different segments are not very similar)

37. discussion question
Warning: You will have the irrepressible urge to segment by demographics. Don’t do it!
It’s okay to use demographics (ex. age, gender, occupation) to help you segment, but don’t rely on them.

38. discussion question
Segment based on
NEED

39. discussion question
Are all the needs you mentioned being met here in Madison?
What is a market that you think is out there that is not currently being met?

40. quiz
Reminder:
The quizzes are timed. You have 4 minutes to submit them. After that, the system will not accept them!
You have 2 attempts to complete the quiz. The system will take the higher score.

41. quiz
Lipton has increased sales by developing ads that encourage its current customers to drink Lipton tea instead of coffee at morning "coffee breaks." This effort focuses on A. Market development B. Diversification C. Product development D. Market penetration E. None of the above

42. quiz
What does “market” mean?

43. quiz
The president of a company that produces cardboard boxes is concerned about the large number of competitors with extra capacity. As he put it, "our best shot is in the hands of our sales manager--she makes all of our marketing decisions and is creative enough to figure out how to sell more boxes." It seems that this company is run as if it were in the:
Production era
Marketing company era
Simple trade era
Sales era
Marketing department era

44. quiz
A digital camera, a computer video-cam, and a computer scanner might compete in the same
Single target market
Generic market
Multiple target market
Combined target market
Product-market

45. quiz Generic market Product-market C. Single target market
ex. things that transfer digital images to your computer
Product-market
ex. digital cameras
C. Single target market
ex. waterproof digital camera
D. Multiple target market
ex. one camera targeted at professionals and amateurs (with different marketing mixes)
E. Combined target market
ex. one camera targeted at professionals and amateurs (same marketing mixes)

46. other questions? ?

47. Have a great weekend