Learning Objectives

1. Review Segmentation and Targeting Concepts and Process

2. Recognize factors that influence alternative segmentation and targeting stragies.

3. Gain experience segmenting a market.
 
 

Customer Focus

 1. Segmentation

  Defined:

  A. Why?

  Mass, Differentiated, Concentrated

       Factors Affecting

           1. Life Cycle
           2. Buyer Differentiation
           3. Company Position
           4. Nature of Competition
           5. Others
                Resources
                Scale Economies
 
 

  B. Bases of Segmentation.
 
 

  C. Profiling.

 2. Targeting

 
  A. Segment Attractiveness.

       1. Market Attractiveness/Competitive Position Matrix

            A. Potential, Competition, and Fit

                 Potential-Size, Growth, Profitability

                 Competition-number, size, Opp. SCA

                 Fit-Strengths and Weaknesses, Objectives, Resources

            B. Exhibit 8.5
 

  B. Select Segments.

       1. Strategy Drivers

                Resources
                Performance
                Competitive Advantage

                Opportunity and Fit

       2. Market Scope

            a. Single Market

                 Concentrated-to be the best competitor

                 Niche-to avoid head to head competition

                 Advantages- focus, specialization

                 Disadvantages- All Eggs in one basket
                 Giving up segments

                 Growth Segments

            b. Multiple-pick and choose

                 Multiple Product

                 Single Product

    c. Total Market-dominate all segments