1. Segmentation, Targeting, and Positioning

2. Segmenting, Targeting, and Positioning What do these words mean? My opinion is that the none of these three ideas are meaningful by themselves. Why is that? How do they work together?

3. When Should You Begin A Segmentation Strategy? One product sold to multiple markets Benefits? Problems? Multiple products in a similar or the same category Benefits? Problems?

4. What is meant by... Mass Customization The business world is moving towards mass customization in many industries How do we manage this way? How do we segment this way?

5. Good Segmentation Characteristics Measurability – can we understand the size and need of the segment Accessibility – can we communicate to the segment independently Substantiality – does the segment value something unique Actionability – can we build a core competency in the segment

6. Segmentation Tools Cross tabulations Cross tabulations – combining frequencies of multiple variables to identify important groups Market-product grids Market-product grids – shows usage among various customer groups, occasions, or situations Perceptual maps Perceptual maps – shows relative positions of ideas based on given criteria

7. Choosing Target Segments Market Attractiveness – size and profitability considerations, meeting unmet needs in an existing market. Competitive Attractiveness – where are there competitive advantages, consider first to market, barriers to entry, and new entrants. Channel Attractiveness – can we grow in our existing channels or will we have to expand. How does our promotional strategy influence the channel? Internal Attractiveness – are there segments that we can appeal to with core competencies?

8. Positioning Issues Do we pursue different positions for different market segments? If yes, how do we do this effectively? What are the impacts on the communication strategies? Pricing strategies? Distribution strategies? Branding strategies?

9. Cross tabulation Example Number of DVDs purchased in the last year Age None1 - 56 -1011 - 20Over 20 Under 1840501000 18 – 25715531312 26 – 35624 3620 36 - 50182339146 Over 5035471440

10. Selecting A Target Market for Wendy’s Near a Urban University

11. Perceptual Map Example