1. ELC 310
Day 19

2. Agenda Second Student Case
InSite Marketing Technologies by Goran
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. Rest of Schedule Today Nov 27 Nov 30 Dec 4 Dec 7 Dec 11 Dec 14
Insite Marketing Technologies
G. Nagradic
Segmentation and Positioning
Nov 27
Terra Lycos
K. Pelletier
New Products
Nov 30
MarketSoft Corporation
L. Dubois
Communication and Selling
Dec 4
OSRAM Sylvania
G.Sumyla
Pricing and Distribution
Dec 7
Logistics.com A & B
G. Nagradic
Build a Trusting Relationship with Customers
Dec 11
Travelocity
K. Pelletier
The Future of Digital Marketing
Dec 14
Citibank Online
L. Dubois
Written Case Study Due
Dec 3PM
Quiz #4
Case Study Presentations Due

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

5. 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?

6. Segmentation as orthographic projections
Segmentation as orthographic projections

7. 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

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

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

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

11. 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

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

13. 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

14. Perceptual Maps (Autos)

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

16. Happy Thanksgiving