Analysis

Analysis

Segmentation

The process of dividing larger groups into smaller pieces based on one or more meaningful shared characteristic

Consumer market segmentation ways:

* Demographics

Gender

Family structure

Age

Income

Race and Ethnicity

* Geographics

Country

Climate

Suburb

Region

Segmenting with geographic variables

* Psychographics

Activities

Interests

Opinions

Psychographic data is useful for understanding consumer with different values and attitudes

Often by using…

* Behaviour

Behavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product

Segemetning to business

Segmenting Business-to-Business Markets

The underlying logic is the same  breaking the market into manageable pieces that share relevant characteristics

User or non-user

Technology used

2 TARGETING

Target market

The market segment/s where a firm focuses its marketing plan and efforts

3 POSTIONING

Positioning means developing a marketing strategy aimed at influencing how a particular market segment perceives a product in comparison to the competition

Pricing methods,

Monetary Prices

Where the exchange involves trading money for the product

Non-monetary Prices

Where no money changes hands, but there is some exchange of value

Known as “barter”

Price is the value that customers give up or exchange to obtain a desired product

May also need to consider the ‘opportunity cost’ – the value given up to obtain something else

Break even analysis

Break-even analysis

Calculating the break-even point

Total fixed cost/Contribution per unit to fixed costs

Break-even point

Where total revenue and total costs are equal

Marketing Mix Strategies

Price, Promotion, Product, Place

The price

Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs. The price of an item is clearly an important determinant of the...