1. 2007 Pearson Education Canada1 Marketing 11 Chapter 6 Market Segmentation and Target marketing Lesson 3: pp. 150-159 Lesson 3: Market Segmentation Strategies pp. 150-159

2. 2007 Pearson Education Canada2 Market Segmentation Strategies Market Differentiation Market Differentiation Niche Marketing Niche Marketing Operate in many segments, with many products with unique marketing strategies. All resources aimed at a distinct segment. Market Integration Market Integration A company expands from a segment to embrace other similar segments

3. 2007 Pearson Education Canada3 Market Differentiation QTG Canada (Quaker Tropicana Gatorade) is a market differentiator  Targeting several market segments with several different products and marketing plans  Different marketing strategies for each product and segment  Not putting all eggs in one basket – very beneficial!  Cost of differentiation can be high (spreading resources thinly) – must evaluate potential revenues carefully against costs!

4. 2007 Pearson Education Canada4 Niche Marketing 1. The niche is sufficiently large and has enough purchasing power to be profitable. 2. It is of negligible interest to major competitors so that there is little threat from these firms. 3. The firm has the required skills and resources to serve the segment effectively. 4. The firm can defend itself from an attacking competitor. TSN (The Sports Network) is a market nicher.

5. 2007 Pearson Education Canada5 Market Integration Expand from a single segment into other similar segments Why choose a market integration strategy? 1.The needs of consumers change 2.New competition enters a particular segment 3.Products and markets reach the maturity stage of the product life cycle and are threatened by new, innovative products Wal-Mart adds groceries Loblaw’s and other supermarkets add pharmacies

6. 2007 Pearson Education Canada6 Positioning “The place a brand occupies in the customer’s mind in relation to competing products.” Positioning involves a 2-Step Process: 1.Develop and market a product that meets needs of target market. 2.Create appropriate appeals to differentiate the product in the customer’s mind.

7. 2007 Pearson Education Canada7 Positioning Strategies 1.Head-on 2.Brand Leadership 3.Product Differentiation 4.Innovation 5.Lifestyle

8. 2007 Pearson Education Canada8 Repositioning “Changing the place a product occupies in the consumer’s mind.” “Changing the place a product occupies in the consumer’s mind.” Repositioning is due to: 1.The activity of a direct competitor. 2.The preferences of a target market change. Cadillac reinvented itself. It’s no longer grandpa’s car!

9. 2007 Pearson Education Canada9 Any Questions? Assignment: Read p. 150-159 Read p. 150-159 Complete WSH 6.3 Complete WSH 6.3