1. Announcements Bain & Co. coming on Tuesday Patrick Widen on Thursday Thursday’s topic: Promotion

2. EC Project Update Phase I grades posted 9:35 class: Average of 83; median 84 11:00 class: Average of 86; median 85 Phase II due on 11/4/10 “What do you plan to do differently in Phase II?”

3. Customer-Driven Marketing Strategy

4. 6-4 Market Segmentation and Market Targeting Major bases for segmenting markets Geographic, Demographic, Psychographic, Behavioral Choosing the right competitive advantage Positioning Map Key Concepts

5. Customer-Driven Marketing Strategy

6. Bases for Segmenting Consumer Markets 7-6

7. 6-7 http://www.claritas.com/My BestSegments/Default.jsp Geographic Segmentation PRYSM Zip Code Lookup

8. Copyright 2007, Prentice-Hall Inc. 6-8 Demographic Variables Differences in age, gender, family size, family life cycle, income, occupation, education, race, and religion can be used to segment markets. Frequently used in segmentation. Easier to measure than most other types of variables.

9. Psychographic Segmentation

10. http://www.strategicbusinessinsights.com/vals/presurvey.shtml

11. Behavioral Segmentation Behavioral segmentation divides a market into segments based on consumer knowledge, attitudes, uses, or responses to a product. Occasions Benefits Sought User Status Usage Rate Loyalty Status

12. Requirements for Effective Segmentation

13. Copyright 2007, Prentice-Hall Inc. 6-13 PepsiCo 10-23-06 Analyst Meeting

14. What is Bud Light’s basis for segmenting markets? A craft beer? Geographic Demographic Psychographic Behavioral

16. Social Media Strategies? http://www.narragansettbeer.com/home http://www.newbelgium.com/home.aspx

17. Market Targeting Strategies

18. Customer-Driven Marketing Strategy

19. Differentiation and Positioning

20. Beer Attributes

21. Perceptual Maps Using Attribute Ratings Select a set of beers of interest to the target group of customers Identify a set of key attributes to evaluate the beers Ensure that customers are familiar with the products Have customers evaluate the products on the chosen set of attributes Example: Positioning of Beers

22. Perceptual Map of Beer Market (Products Only) Meister Brau Stroh’s Beck’s Heineken Old Milwaukee Miller Coors Michelob Miller Lite Coors Light Old Milwaukee Light Budweiser BudgetPremium Heavy Light

23. Perceptual Map of Beer Market (Attributes Only) Popular with Men Heavy Special Occasions Dining OutPremium Popular with Women Light Pale Color On a Budget Good Value Blue Collar Full Bodied PremiumBudget Light Heavy Less Filling

24. Perceptual Map of Beer Market Popular with Men Heavy Special Occasions Dining OutPremium Popular with Women Light Pale Color On a Budget Good Value Blue Collar Full Bodied PremiumBudget Light Heavy Meister Brau Stroh’s Beck’s Heineken Old Milwaukee Miller Coors Michelob Miller Lite Coors Light Old Milwaukee Light Budweiser Less Filling

25. Choosing a Strategy

26. Competitive Advantage

27. Choosing the Right Competitive Advantage

28. Overall Positioning Strategy

29. Positioning Statement (or Value Proposition)