1. What We Will Discuss Today u Recap of Previous Session –Video –Segmentation F Review and Background F Impact on Gift Giving u Bases of Segmentation –Criteria For Segmentation u Targeting –Evaluating Market Segments –Patterns of Selection and Strategies u Positioning u Quiz

2. Background on STP u Mass Marketing u Product Variety Marketing u Target Marketing u Relationship Marketing

3. STEP 2: Targeting u Market Targeting: Process of evaluating each market segment’s attractiveness and selecting one or more of the market segments to enter.

4. STEP 3: Positioning u Market Positioning: Process of formulating a competitive positioning for a product and a detailed marketing mix. u Goal of Positioning: The product should occupy a clear, distinctive and desirable place relative a clear, distinctive and desirable place relative to competing products in the minds of consumers. to competing products in the minds of consumers. CSUN OTHER CSUs Reputation Quality

5. The Gift Giving Market 1 A Benefits Segmentation 4 Stages of a Relationship:

6. The Gift Giving Market 2 A Benefits Segmentation Characteristics:

7. The Gift Giving Market 3 A Benefits Segmentation Product Differentiation:

8. Bases for Segmentation u Geographic u Demographic u Psychographic –Social class –Lifestyle –Personality u Behavioral –Occasions –Benefits sought –Loyalty

9. Criteria for Segmentation u Measurability - degree to which the size and purchasing power of a segment can be measured u Accessibility - degree to which markets can be effectively reached and served. u Substantiality -degree to which segments are large and profitable enough. u Actionability -degree to which effective programs can be formulated for attracting and serving segments u Collectively Exhaustive and Mutually Exclusive

10. Market Targeting (1): Evaluating Segments 3 Cs: u Consumers –Size –Growth potential u Competitive situation –Nature of competition –Substitutes –Power of suppliers and buyers u Company – objectives – resources

11. Market Targeting (2): Selecting Segments u Undifferentiated –Focus on what is common among consumers –Mass marketing u Differentiated –Target several market segments –Develop separate offers for each u Concentrated –Focus on large share of some market

12. Factors Affecting Targeting Strategy u Resources u Variability (Product and Market) u Competitors’ Strategies

13. Patterns of Target Market Selection 1 u Single-Segment Concentration - niche (VW) u Product Specialization - 1 product, different markets u Market Specialization - 1 market, different products u Selective Specialization - different segments each matching the firm’s competitive advantages u Full Coverage - all products, all markets

14. Patterns of Target Market Selection 2 M1 M2 M3 P1P2P3P1P2P3 P1P2P3 P1P2P3P1P2P3 P = Product M = Market

15. A Marketing Strategy Plan AirlinesRailroadsTruckers LargeComputersWorkstationsPCs A B A A BB C

16. Positioning: 4 Ps u Product u Price u Place u Promotion

17. u Recap of Previous Session –Video –Segmentation F Review and Background F Impact on Gift Giving u Bases of Segmentation –Criteria For Segmentation u Targeting –Evaluating Market Segments –Patterns of Selection and Strategies u Positioning u Quiz I wish he’d let us take the quiz. What We Discussed Today