Announcements

• Bain & Co. coming on Tuesday

• Patrick Widen on Thursday

• Thursday’s topic: Promotion

EC Project Update

• Phase I grades posted• 9:35 class: Average of 83; median 84• 11:00 class: Average of 86; median 85

• Phase II due on 11/4/10

• “What do you plan to do differently in Phase II?”

Customer-Driven Marketing Strategy

6-4

• Market Segmentation and Market Targeting

• Major bases for segmenting markets• Geographic, Demographic, Psychographic,

Behavioral

• Choosing the right competitive advantage

• Positioning Map

Key Concepts

Customer-Driven Marketing Strategy

Bases for Segmenting Consumer Markets

7-6

6-7

http://www.claritas.com/MyBestSegments/Default.jsp

Geographic SegmentationPRYSM Zip Code Lookup

Copyright 2007, Prentice-Hall Inc.

6-8

Demographic Variables

• Differences in age, gender, family size, family life cycle, income, occupation, education, race, and religion can be used to segment markets.• Frequently used in

segmentation.• Easier to measure

than most other types of variables.

Psychographic Segmentation

• http://www.strategicbusinessinsights.com/vals/presurvey.shtml

Behavioral Segmentation

• Behavioral segmentation divides a market into segments

based on consumer

knowledge, attitudes, uses, or responses to

a product.

Occasions

Benefits Sought

User Status

Usage Rate

Loyalty Status

Requirements for Effective Segmentation

Copyright 2007, Prentice-Hall Inc.

6-13

PepsiCo 10-23-06 Analyst Meeting

• What is Bud Light’s basis for segmenting markets?

• A craft beer?• Geographic

• Demographic

• Psychographic

• Behavioral

Social Media Strategies?

• http://www.narragansettbeer.com/home

• http://www.newbelgium.com/home.aspx

Market Targeting Strategies

Customer-Driven Marketing Strategy

Differentiation and Positioning

Beer Attributes

Perceptual Maps Using Attribute Ratings

• Select a set of beers of interest to the target group of customers

• Identify a set of key attributes to evaluate the beers

• Ensure that customers are familiar with the products

• Have customers evaluate the products on the chosen set of attributes

Example: Positioning of Beers

Perceptual Map of Beer Market

(Products Only)

•

Meister Brau

Stroh’s

•

•

•

Beck’s

• Heineken

Old Milwaukee

•

Miller •

Coors•

Michelob•

Miller Lite

• Coors Light•

OldMilwaukee Light

•

Budweiser

Budget Premium

Heavy

Light

Perceptual Map of Beer Market

(Attributes Only)Popular with MenHeavy

Special Occasions

Dining Out Premium

Popular with Women

Light

Pale Color

On a Budget

Good ValueBlue Collar

Full Bodied

PremiumBudget

Light

Heavy

Less Filling

Perceptual Map of Beer Market

Popular with MenHeavy

Special Occasions

Dining Out Premium

Popular with Women

Light

Pale Color

On a Budget

Good ValueBlue Collar

Full Bodied

PremiumBudget

Light

Heavy

•

Meister Brau

Stroh’s

•

•

•

Beck’s

• Heineken

Old Milwaukee

•

Miller •

Coors•

Michelob•

Miller Lite

• Coors Light•

OldMilwaukee Light

•

Budweiser

Less Filling

Choosing a Strategy

Competitive Advantage

Choosing the Right Competitive Advantage

Overall Positioning Strategy

Positioning Statement(or Value Proposition)