Announcements Bain & Co. coming on Tuesday Patrick Widen on Thursday Thursday’s topic: Promotion
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?”
Customer-Driven Marketing Strategy
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
Customer-Driven Marketing Strategy
Bases for Segmenting Consumer Markets 7-6
6-7 BestSegments/Default.jsp Geographic Segmentation PRYSM Zip Code Lookup
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.
Psychographic Segmentation
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
Requirements for Effective Segmentation
Copyright 2007, Prentice-Hall Inc PepsiCo Analyst Meeting
What is Bud Light’s basis for segmenting markets? A craft beer? Geographic Demographic Psychographic Behavioral
Social Media Strategies?
Market Targeting Strategies
Customer-Driven Marketing Strategy
Differentiation and Positioning
Beer Attributes
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
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
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
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
Choosing a Strategy
Competitive Advantage
Choosing the Right Competitive Advantage
Overall Positioning Strategy
Positioning Statement (or Value Proposition)