MARKETING STRATEGYO.C. FERRELL MICHAEL D. HARTLINE6Market Segmentation, TargetMarketing, and Positioning

Market Segmentation Strategies (1 of 2)Traditional Approaches to Market SegmentationMass MarketingDifferentiated MarketingMultisegment ApproachMarket Concentration ApproachNiche Marketing

Mass Marketing StrategyFrom Exhibit 6.1 (1 of 4)

Multisegment StrategyFrom Exhibit 6.1 (2 of 4)

Market Concentration StrategyFrom Exhibit 6.1 (3 of 4)

Niche Marketing StrategyFrom Exhibit 6.1 (4 of 4)

Discussion QuestionCan you think of a product that could be marketed effectively using a mass marketing approach? If so, explain and justify your answer. If not, what types of changes would have to be made to the product to make it appropriate for a mass marketing approach?

Multisegment Approach

Market Segmentation Strategies (2 of 2)Emerging Approaches to SegmentationOne-to-One MarketingMass CustomizationPermission MarketingCriteria for Successful SegmentationIdentifiable and MeasurableSubstantialAccessibleResponsiveViable

Discussion QuestionMany consumers and consumer advocates are critical of the one-to-one marketing approach due to personal privacy concerns. Marketers counter that one-to-one marketing can lead to privacy abuses, but that the benefits to both consumers and marketers far outweigh the risks. Where do you stand on this issue? Why?

Bases for SegmentingConsumer MarketsBehavioral SegmentationSegments based on actual behavior or product usageDemographic SegmentationSegments based on demographic factors (e.g., gender, age, income, education, etc.)Psychographic SegmentationSegments based on state-of-mind issues (e.g., motives, attitudes, opinions, values, lifestyles, interests, personality, etc.)Geographic SegmentationSegments based on geographic location

Marketing Strategy in ActionDemographic segmentation strategies, such as the one utilized in this Virginia Slims advertising campaign, are common because their ease of use and measurement.What are the limitations of demographic segmentation? What can marketers do to compensate for these limitations?

VALS

Benefit Segmentation ofthe Snack Food MarketExhibit 6.4

Discussion QuestionWhat are some of the ethical and legal issues involved in targeting sensitive groups such as children and seniors?

Bases for SegmentingBusiness MarketsType of OrganizationOrganizational CharacteristicsBenefits Sought or Buying ProcessesPersonal and PsychologicalRelationship Intensity

Target Marketing StrategiesFive basic strategies for target market selection:(1) Single Segment Targeting(2) Selective Targeting(3) Mass Market Targeting(4) Product Specialization(5) Market Specialization

Basic Target Marketing StrategiesExhibit 6.6

Differentiation and Positioning (1 of 2)Relative perceptionProcess of creating favorable relative position:(1) Identification of target market(2) Determination of needs, wants, preferences and benefits desired(3) Examination of competitors characteristics and positioning(4) Comparison of product offerings with competitors(5) Identification of unique position(6) Development of a marketing program(7) Continual reassessment

Differentiation and Positioning (2 of 2)Differentiation StrategiesProduct DescriptorsProduct featuresAdvantagesBenefitsCustomer Support ServicesImagePositioning StrategiesStrengthen the Current PositionRepositioningReposition the Competition

Using Product Descriptorsfor Product DifferentiationExhibit 6.7