1. Chapter 5 Market Segmenting, Targeting, and Positioning

2. 2010 Flat World Knowledge, Inc.

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7. Learning Objectives 2010 Flat World Knowledge, Inc.

• Distinguish between targeted marketing and mass marketing .

• Explain the different market segmentation strategies companies pursue.

• Position a product offering using geodemographic segmenting strategies.

8. Mass vs. Targeted Marketing Targeted Marketing Using research to select a segment of the consumer market and developing targeted strategies Mass Marketing Selling the same product to all consumers using the same strategies

9. Benefits in Segmenting and Targeting 2010 Flat World Knowledge, Inc.

10. Key Takeaways 2010 Flat World Knowledge, Inc. Mass marketing selling the same product to everyone Differentiated marketing targeting select groups

• Major vs. minor customers all customers are not equal

• Costs more to find a new customer vs. keeping current

• 20% of the customers can lead to 80% of revenue/profits

11. Segmenting by Demographics , Inc.

12. Segmentation by Geography Where do buyers live? What are the unique needs and wants in this area? Geocoding maps customer zip code and purchase information. Geodemographics combines geographic and demographic information.

13. Positioning 2010Flat World Knowledge, Inc. Positioning allowing a product to stand out from competition Re-positioning moving a product to a different place in buyers minds