1. ELC 310
Day 20

2. Agenda Second Student Case
InSite Marketing Technologies by Steve
presentations at least 15 min before class so I may upload to web server
Case studies are tied to proceeding chapters, make sure you discuss the connection
Discussion/lecture Segmentation and Positioning

3. Case study Grading rubric
Grade Generation for analysis
Two Components
Instructor Grade for Presenter
60% of Total grade
Instructor Grade for Class Participation
40% of Total Grade
Grading Rubric for Presenter
Demonstrated Mastery of Case Study %
Understanding of How Case Study Fits 30%
Presentation effectiveness %
Quality of PowerPoint %
Grading Rubric for Class Participation
Subjective interpretation %

4. Rest of Schedule Nov 18 Nov 21 Nov 25 Dec 2 Dec 5 Dec 9 Dec 12
Insite Marketing Technologies (Steve)
Segmentation and Positioning
Nov 21
Terra Lycos (Randy)
New Products
Nov 25
MarketSoft Corporation (Emlyn)
Communication and Selling
Dec 2
OSRAM Sylvania (Owen)
Pricing and Distribution
Dec 5
Logistics.com A & B (Steve)
Build a Trusting Relationship with Customers
Dec 9
Travelocity (Randy)
The Future of Digital Marketing
Dec 12
Citibank Online (Emlyn)
Dec 1 PM
Quiz #4
Written Case Study & Presentations Due
® Tony Gauvin, UMFK , 2007

5. Overview Why Segment? Bases of Segmentation Analytical Support
Demographics
Attitudes
Importance
Usage
Analytical Support
Cluster analysis
Product Positing
Perceptual Maps
Conjoint analysis

6. Why Segment
Divide the market into parts and devise alternative marketing strategies for the parts
Why?
Different parts have different preferences
Consumers will pay more for a product that matches their needs
What makes a “good” segmentation?
Each segment has a different product preference
Not too “big” --- Not too “small”
What makes a good segment?
Underserved by competitors
Two key points
How many segments should we deliver?
How should customers be grouped in these segments to best define a market?

7. Segmentation as orthographic projections
Segmentation as orthographic projections

8. Bases for Segmentation
Demographics
Easily determined by census data
Attitudes
Market research question and surveys
Attitudes towards product is very effective
Importances
Sensitivity to product and service differences
Usage
Purchasing behavior
Observed behavior
Pareto principle 20/80

9. Analytical Support
Goal: aggregation of customers to internally homogenous groups
Can be done using statistical method called cluster analysis

10. Cluster Analysis (Demographics)
Example PrizmTM
Uses Zip Code instead of people
66 Segments
14 Social
11 Life Stage

11. Cluster Analysis (Attitudes)
Example: VALSTM
Source: SRI Consulting Business Intelligence (SRIC-BI);
I’m a Innovator/Thinker
Take the survey

12. Product Positioning
Positioning takes place within a targeted segment and allows us to compete effectively within that segment
We need to Know
What dimensions in-segment consumers use to evaluate competitive marketing programs
How important each of these dimensions in the decision process
How we and the competition differ perceptually on the dimensions
How consumers make choices on the basis of this information

13. Product Positioning Steps
1. Select Key Criteria
2. Diagram Map
Product
Positioning
Steps
Plot competitors’
products
4. Look for niches
5. Develop Marketing Plan

14. Product Positioning Map
High
Convenience
Rental Car Market
Firm 1 •
Firm 1 • •
Firm 2 •
Firm 2
High
Customer
Loyalty
Low
Customer
Loyalty •
Firm 3 •
Firm 3
Low
Convenience
Rental Car Market

15. Perceptual Maps (Autos)

16. Conjoint Analysis
Links product features directly to consumer preferences or customer needs
Tutorial
Perception
Preference
Features