MARKETING MANAGEMENT

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MARKETING MANAGEMENT

• Stephen J. Miller
• Oklahoma State University
• MKTG 5133-MG 720
• Lecture 9

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Market Segmentation
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Vision of the Market

• Mass Serve all users uniformly
• Segmented Consider subsets as unique
• Individual Focus separately on each buying unit.

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Market Segmentation

• The act of identifying distinct group of buyers
  for which to potentially design separate
  marketing mixes.

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Purpose of Segmentation

• Efficiency
• Effectiveness
• To better focus on customer needs

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Danger of Segmentation

• Loss of Economies of Scale
• Loss of Consistency in Delivery

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Research Variables in Segmentation Research

• Buyer Characteristics demographics,
  socio-economics, etc.
• Buyer Preferences and Behaviors usage,
  brand/model choice, etc
• Buying Process media habits, store preferences,
  etc.

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Typical Consumer Characteristics

• Geography
• Demographics
• Socio-Economic
• Social class/values
• Personality
• Life Style

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Typical B2B Characteristics

• Industry
• Application
• Size
• Geography

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Buyer Preferences/Behaviors

• Usage Levels
• Brand/Model Preference
• Needs/Benefits Sought
• Buying State

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Research Methods to Identify Market Segments

• Preferences/behaviorf(buyer traits)
• Buyer traitsf(preferences/behaviors)
• Buying process descriptors for preference and
  traits

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Choosing Traits By Which to Segment Markets

• Degree of Response Differences
• Measurability
• Size of Segment
• Accessibility

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Selecting Market Segments to Target

• Segment attractiveness
• Segment profitability
• Segment match to corporate capabilities-differenti
  al advantage

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Target Market Options

• Mass Market
• Single Segment
• Selected Segments(by market or by product)
• Full Market Coverage

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Marketing Strategy Options to Serve Segments

• Products
• Price
• Promotion
• Channels

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Differentiation/Positioning
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Positioning

• The act of designing the company's offering and
  image to occupy a distinctive place in the target
  markets mind.

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Differentiation

• The act of designing a set of meaningful
  differences to distinguish the companys offering
  from competitors offerings.

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Differentiation Options

• Product
• Services
• Personnel
• Image

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Your Questions

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