group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services – ways of satisfying those needs

• Market with broadly similar needs & sellers often offer various and diverse ways of meeting those needs
• look at mkt broadly and from customer's point of view
• Needs want to be satisfied; don't care about how one product is better than another
• Hard: different types of competing products (ex. recording emories: cameras, vid cams, postcards)
• Doesn't include product-types

• Mkt with VERY SIMILAR needs and selelrs offering VARIOUS CLOSE SUBSTITUTES way of satisfying needs ex. Digital camera wanted by consumers -> diff. brands compete
• too narrow limits opps; too broad makes company's efforts and resources insignificant
• Relevant Market for finding opps should be: 1) bigger than present product-mkt 2) not so big that can't be established competitor

• Same product & mktg mix (4 Ps) fore everyone
• Efficient 

• Process of dividing martket into distinct subsets of consumers w/common needs & characteristics
• select 1 or more segments to target
• position w/unique mktg mix
• allows for est. companies to find new mkts
• allows for new companies to find a niche
• allows for identification of specific wnats/needs of consumer groups
• reposition existing products
• determine appropriate media

Marriott

• Courtyard - business travelers
• Ritz-Carlton - luxury
• Autograph - for adventurers; uniquely designed to reflect destination location

• Geography
• region, city size, density, climate, zip code
• Demographic
• Age, cohort, sex, marital status, income, education, occupation
• Sociographic
• culture/subculture (race), religion, social class, family life cycle
• Psychological
• Need/motivation, personality, perception, learning/involvement, attitudes
• Use related
• usage rate, awareness, brand loyalty
• Use situation
• time, objective, location, end user
• Hybrid
• geo-demographic, demographic/psychographic
• Benefit
• Psychographic

• Homogenous within
• Heterogenous between (differentiating)
• Substantial - segments big enough to be profitable
• Operational (measurable, accessible, actionable)
• Stable

• Cluster analysis; factor analysis
• Art & opinion

• Claritas PRIZM NE system
• geo-demographic segmentation
• social groups (urban, suburban, second city, town & rural) divided by income (1-4; 1 is highest $)
• SBI VALS (Values & Lifestyle system) 
• Psychographic & demographic
• Experiencer, Innovator

• Microsegmentation - moving towards a segmentation of 1
• creating and maintaining a relationship with an individual customer to build lifetime value
• Identify -> Differentiate -> Interact -> Customize

• Harrahs - casino with rewards card to get points; creates valuable database
• Amazon - personalized suggestions based on past purchases and search history

• Segment size, growth, value, stability
• company position w/segment
• easy of entry
• ability to reach/serve segment
• competitors
• number and strength
• ease of entry
• Product Life Cycle

• influences how a particular segment perceives an offering in comparison to the competition
• Using the Marketing Mix

• To (target segment and need) our (brand) is the (concept) that (point out differences)
   
• For (target and end user) who wants/needs (compelling reason to buy) the (brand/product) is (concept/product category) that provides (key benefit) unlike (main competitior).

• Target
• Frame of reference
• Point of differentiation
• Reson to believe

• MS; Strategic; identify bases for segmenting mkt; develop segment profiles
• TM; Strategic; develop measure of segment attractiveness; select target segments
• MP; Tactical; develop positioning for target segments; develop marketing mix for each segment

• What: product type; goods customers want
• To Meet Customer Needs: needs the product satisfies; functional (clean, protect, warm, nourish); emotional (appearance, fun, excitement
• For Whom: customer types; all present/possible types of customers 
• Where: geoppgraphic area where firm competes/plans to compete for customers

1. Say
2. Spell
3. Read
4. Remember

1. Target market
2. Benefits
3. Culture
4. Legal

• Mens: Shield vs. Womens: Caress/Moisturize
• Connote different benefits, imply different things

Packaging