ELC 310 Day 20

Agenda Second Student Case InSite Marketing Technologies by Steve Email 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

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 30% Understanding of How Case Study Fits 30% Presentation effectiveness 20% Quality of PowerPoint 20% Grading Rubric for Class Participation Subjective interpretation 100%

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 17 @ 1 PM Quiz #4 Written Case Study & Presentations Due ® Tony Gauvin, UMFK , 2007

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

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?

Segmentation as orthographic projections   Segmentation as orthographic projections  

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

Analytical Support Goal: aggregation of customers to internally homogenous groups Can be done using statistical method called cluster analysis http://en.wikipedia.org/wiki/Cluster_analysis_(in_marketing)

Cluster Analysis (Demographics) Example PrizmTM Uses Zip Code instead of people http://www.claritas.com/claritas/Default.jsp?ci=3&si=4&pn=prizmne 66 Segments 14 Social 11 Life Stage

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

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

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

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

Perceptual Maps (Autos) http://www.nowsell.com/marketing-guide/perceptual-mapping.html

Conjoint Analysis Links product features directly to consumer preferences or customer needs Tutorial http://marketing.byu.edu/htmlpages/tutorials/conjoint.htm Perception Preference Features