Marketing Mix & Market Segmentation

• Market Segmentation


  Regenerates market into smaller groups of markets with common needs & wants
• Ways of Segmenting a Market

  • Geographic
  • Demographic
  • Psychographic
  • Behavioral
• Geographic Segmentation


  • Dividing based on location of countries
• Demographic Segmentation


  • Differentiating by personal characteristics like age, gender, income, family size, & life cycle
• Psychographic Segmentation


  • Differentiating by social class, values, personality, & lifestyles, perceptions, activities, interest, rate or frequency of going
• Behavioral Segmentation


  • Differentiating by influence, shopping patterns, usage frequency
• Market Targeting


  Breaking into segments & concentrating marketing efforts on key segments
• Targeting Strategies


  • Undifferentiated Marketing
  • Differentiated Marketing
  • Concentrated Marketing Strategy
• Undifferentiated Marketing


  Entire market as target
• Differentiated Marketing


  Considers different segments, e.g. ticket seats, window shoppers, buyers, regular
• Concentrated Marketing Strategy


  Develops product for one segment
• Market Positioning


  Owning distinctive characteristics for product
• Perceptual Marketing


  Displaying mental image that target market has on product
• Product


  Anything in form of a good, service, or idea that satisfies need or want and received in exchange for money & value
• Barter System


  Exchange of value, not money-for-money
• Components of a Product

  • Core Product
  • Formal Product
  • Augmented Product
• Core Product


  End benefits for product, what buyer is really buying
• Formal Product


  Actual physical or perceived characteristics of product, level of quality, special features, styling, branding, and packaging
• Augmented Product


  How to deliver, support items that complete total product offering, after-sales service, warranty, delivery, installations
• Types of Products


  • Goods
  • Services
  • Experiences
• Goods


  • Physical attributes are preserved
• Services


  • Intangible, Perishable - not a stock of fixed asset, Heterogenous - different multifaceted experiences, Inseparable - inextricably linked with customers
• Experiences


  • Tangible & intangible brought to one to create memorable experience, Exchanged between institutions
• Product Life Cycle


  • Satisfactory
  • Complaints
  • Feedback
• Pricing


  Amount of money charged for product or service, sum of all values to gain benefit of product or service
• Price Determinants


  • Internal Factors
  • External Factors
• Internal Factors


  • Marketing Strategy, Objectives, Marketing Mix
• External Factors


  • Pure Competition, Monopolistic, Oligopolistic
• Demand


  Willingness to buy
• Economy


  Affects consumed spending, perception, costs of producing & selling products
• Product Marketing Strategies


  • Product Line Pricing
  • Optional Product Pricing
  • Captive Product Pricing
  • By-Product Pricing
  • Product Bundle Pricing
  • Market Penetration
  • Market Skimming
• Product Line Pricing


  Company has more than one product in line and create different value
• Optional Product Pricing


  Sells base product at low price but sells complementary accessories at higher price
• Captive Product Pricing


  Sells product that must be used within main product
• By-Product Pricing


  Prices by-products that have no value for company so disposal & storage will not add to cost
• Product Bundle Pricing


  Sells several products to combined product or reduced price
• Market Penetration


  Offers lower than regular market prices to enter market
• Market Skimming


  First to market new high-end product or innovative product, introduction only