Why a new Diet Soda? Coke Zero pom3-1

Segmentation, Targeting, Positioning Process Pom3 - 2

Evaluate Segment Attractiveness pom3-3

Identifiable Who is in their market? Are the segments unique? Does each segment require a unique marketing mix? pom3-4

Substantial Too small and it is insignificant Too big and it might need it’s own store pom3-5

Reachable Know the product exists Understand what it can do Recognize how to buy pom3-6

Responsive React positively to firm’s offering Move toward the firms products/services Accept the firm’s value proposition Customers must: pom3-7

Profitable (Lawn Service) HomeownersBusinesses Segment size75,0001,000 Adoption percentage1%20% Adoptions Purchase price$100$500 Frequency of purchase12 times20 times Sales per adoption1,20010,000 Profit margin percentage60%80% Margin per adoption$720$8,000 Margin times adoption$540,000$1,600,000 Fixed costs$400,0001,000,000 Segment profit$140,000$600,000

Types of Segmentation Geographic – Where they live Demographic – Objective personal characteristics Psychographic – how occupy time and what underlying reasons determine choices Benefits – Solutions (benefits) sought from products Geodemographic – combination of geographic, demographic and lifestyle characteristics Loyalty – Whether buy exclusively from firm Clip 8 Library McDonald's Segmentation, Targeting, and Positioning

VALS Website VALS Framework pom3-10

Segmentation Strategy pom3-11

Step 5: Develop Positioning Strategy Circles for a Successful Value Proposition No Overlap with Competition Circles for a Successful Value Proposition No Overlap with Competition Circles for a Successful Value Proposition Overlap with Competition Circles for a Successful Value Proposition Overlap with Competition pom3-12

Perceptual Maps pom3-13

Repositioning Disposal freshener Tooth cleaner Stain remover Volcano maker Cleaner Baking Fridge freshener pom3-14