ELC 310
Day 20
Agenda
• Second Student Case
– InSite Marketing Technologies by Steve
– Email presentations at least 15 min before class so I may
upload to web server
• Case studies are tied to proceeding chapters, make sure you
discuss the connection
• Discussion/lecture Segmentation and Positioning
Case study Grading rubric
•
Grade Generation for analysis
– Two Components
• Instructor Grade for Presenter
– 60% of Total grade
• Instructor Grade for Class Participation
– 40% of Total Grade
•
Grading Rubric for Presenter
–
–
–
–
•
Demonstrated Mastery of Case Study
Understanding of How Case Study Fits
Presentation effectiveness
Quality of PowerPoint
Grading Rubric for Class Participation
–
Subjective interpretation
100%
30%
30%
20%
20%
Rest of Schedule
•
•
Nov 18
– Insite Marketing Technologies
(Steve)
– Segmentation and Positioning
•
– Logistics.com A & B (Steve)
– Build a Trusting Relationship
with Customers
•
Nov 21
– Terra Lycos (Randy)
– New Products
•
•
Nov 25
Dec 2
– OSRAM Sylvania (Owen)
– Pricing and Distribution
Dec 9
– Travelocity (Randy)
– The Future of Digital Marketing
– MarketSoft Corporation (Emlyn)
– Communication and Selling
•
Dec 5
Dec 12
– Citibank Online (Emlyn)
•
Dec 17 @ 1 PM
– Quiz #4
– Written Case Study &
Presentations Due
® Tony Gauvin, UMFK ,
2007
Overview
• Why Segment?
• Bases of Segmentation
–
–
–
–
Demographics
Attitudes
Importance
Usage
• Analytical Support
– Cluster analysis
• Product Positing
– Perceptual Maps
– Conjoint analysis
Why Segment
• Divide the market into parts and devise alternative
marketing strategies for the parts
• Why?
– Different parts have different preferences
– Consumers will pay more for a product that matches
their needs
• What makes a “good” segmentation?
– Each segment has a different product preference
– Not too “big” --- Not too “small”
• What makes a good segment?
– Underserved by competitors
• Two key points
– How many segments should we deliver?
– How should customers be grouped in these segments
to best define a market?
Segmentation as orthographic projections
Bases for Segmentation
• Demographics
– Easily determined by census data
• Attitudes
– Market research question and surveys
– Attitudes towards product is very effective
• Importances
– Sensitivity to product and service
differences
• Usage
– Purchasing behavior
– Observed behavior
– Pareto principle 20/80
Analytical Support
• Goal: aggregation of customers to internally
homogenous groups
– Can be done using statistical method called
cluster analysis
– http://en.wikipedia.org/wiki/Cluster_analysis
_(in_marketing)
Cluster Analysis (Demographics)
• Example PrizmTM
– Uses Zip Code instead of people
– http://www.claritas.com/claritas/Default.jsp?
ci=3&si=4&pn=prizmne
– 66 Segments
• 14 Social
• 11 Life Stage
Cluster Analysis (Attitudes)
• Example: VALS
TM
– Source: SRI Consulting Business
Intelligence (SRIC-BI); http://www.sricbi.com/VALS
– I’m a Innovator/Thinker
– Take the survey
Product Positioning
• Positioning takes place within a targeted
segment and allows us to compete
effectively within that segment
• We need to Know
– What dimensions in-segment consumers use to
evaluate competitive marketing programs
– How important each of these dimensions in the
decision process
– How we and the competition differ perceptually on the
dimensions
– How consumers make choices on the basis of this
information
Product Positioning Steps
1. Select Key Criteria
2. Diagram Map
Product
Positioning
Steps
3. Plot competitors’
products
4. Look for niches
5. Develop Marketing
Plan
Product Positioning Map
High
Convenience
Rental Car Market
•
Firm 2
Firm 1
•
High
Customer
Loyalty
Low
Customer
Loyalty
•
Firm 3
Low
Convenience
Rental Car Market
Perceptual Maps (Autos)
• http://www.nowsell.com/marketingguide/perceptual-mapping.html
Conjoint Analysis
• Links product features directly to consumer
preferences or customer needs
• Tutorial
– http://marketing.byu.edu/htmlpages/tutorials/
conjoint.htm
Perception
Preference
Features