What We Will Discuss Today u Recap of Previous Session –Video –Segmentation F Review and Background F Impact on Gift Giving u Bases of Segmentation –Criteria For Segmentation u Targeting –Evaluating Market Segments –Patterns of Selection and Strategies u Positioning u Quiz

Background on STP u Mass Marketing u Product Variety Marketing u Target Marketing u Relationship Marketing

STEP 2: Targeting u Market Targeting: Process of evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter.

STEP 3: Positioning u Market Positioning: Process of formulating a competitive positioning for a product and a detailed marketing mix. u Goal of Positioning: The product should occupy a clear, distinctive and desirable place relative a clear, distinctive and desirable place relative to competing products in the minds of consumers. to competing products in the minds of consumers. CSUN OTHER CSUs Reputation Quality

The Gift Giving Market 1 A Benefits Segmentation 4 Stages of a Relationship:

The Gift Giving Market 2 A Benefits Segmentation Characteristics:

The Gift Giving Market 3 A Benefits Segmentation Product Differentiation:

Bases for Segmentation u Geographic u Demographic u Psychographic –Social class –Lifestyle –Personality u Behavioral –Occasions –Benefits sought –Loyalty

Criteria for Segmentation u Measurability - degree to which the size and purchasing power of a segment can be measured u Accessibility - degree to which markets can be effectively reached and served. u Substantiality -degree to which segments are large and profitable enough. u Actionability -degree to which effective programs can be formulated for attracting and serving segments u Collectively Exhaustive and Mutually Exclusive

Market Targeting (1): Evaluating Segments 3 Cs: u Consumers –Size –Growth potential u Competitive situation –Nature of competition –Substitutes –Power of suppliers and buyers u Company – objectives – resources

Market Targeting (2): Selecting Segments u Undifferentiated –Focus on what is common among consumers –Mass marketing u Differentiated –Target several market segments –Develop separate offers for each u Concentrated –Focus on large share of some market

Factors Affecting Targeting Strategy u Resources u Variability (Product and Market) u Competitors’ Strategies

Patterns of Target Market Selection 1 u Single-Segment Concentration - niche (VW) u Product Specialization - 1 product, different markets u Market Specialization - 1 market, different products u Selective Specialization - different segments each matching the firm’s competitive advantages u Full Coverage - all products, all markets

Patterns of Target Market Selection 2 M1 M2 M3 P1P2P3P1P2P3 P1P2P3 P1P2P3P1P2P3 P = Product M = Market

A Marketing Strategy Plan AirlinesRailroadsTruckers LargeComputersWorkstationsPCs A B A A BB C

Positioning: 4 Ps u Product u Price u Place u Promotion

u Recap of Previous Session –Video –Segmentation F Review and Background F Impact on Gift Giving u Bases of Segmentation –Criteria For Segmentation u Targeting –Evaluating Market Segments –Patterns of Selection and Strategies u Positioning u Quiz I wish he’d let us take the quiz. What We Discussed Today