Management Consulting/marketing for managers



please give me ans of some questions .

(b) In spite of secondary data being available in abundance, what makes a manager
rely on the collection of primary data for marketing decisions ? Elaborate with
suitable examples.
2. (a) Middleman and their functions form an essential aspect of Marketing Channels.
Discuss with suitable examples.
(b) What are the various steps in the consumer decision making process in the
following situations ?
(i) Bottled mineral water.
(ii) Purchase of Lap Top.

3. (a) Discuss the concept of positioning. Flow does it benefit marketers in a competitive scenario ? Suggest alternatives positioning bases for the manufacturer of wrist
(11) Discuss the factors that are major determinants of promotion mix of an organisation.

4. what is market segmentation? name two ways the market for each of the following product might be segmented
1. magazines
2. bicycles
3. perfumes

(b) In spite of secondary data being available in abundance, what makes a manager
rely on the collection of primary data for marketing decisions ? Elaborate with
suitable examples.
PRIMARY  research techniques come in many forms, including:
•   Ad Tracking – periodic or continuous in-market research to monitor a brand’s performance using measures such as brand awareness, brand preference, and product usage. (Young, 2005)
•   Advertising Research – used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ad’s ability to get attention (measured with AttentionTracking), communicate the message, build the brand’s image, and motivate the consumer to purchase the product or service. (Young, 2005)
•   Brand equity research - how favorably do consumers view the brand?
•   Brand association research - what do consumers associate with the brand?
•   Brand attribute research - what are the key traits that describe the brand promise?
•   Brand name testing - what do consumers feel about the names of the products?
•   Commercial eye tracking research - examine advertisements, package designs, websites, etc. by analyzing visual behavior of the consumer
•   Concept testing - to test the acceptance of a concept by target consumers
•   Coolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle
•   Buyer decision making process research - to determine what motivates people to buy and what decision-making process they use; over the last decade, Neuromarketing emerged from the convergence of neuroscience and marketing, aiming to understand consumer decision making process
•   Copy testing – predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion. (Young, p 213)
•   Customer satisfaction research - quantitative or qualitative studies that yields an understanding of a customer's satisfaction with a transaction
•   Demand estimation - to determine the approximate level of demand for the product
•   Distribution channel audits - to assess distributors’ and retailers’ attitudes toward a product, brand, or company
•   Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong opinion formers.
•   Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities.
•   Mystery consumer or mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products.
•   Positioning research - how does the target market see the brand relative to competitors? - what does the brand stand for?
•   Price elasticity testing - to determine how sensitive customers are to price changes
•   Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc.
•   Segmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers
•   Online panel - a group of individual who accepted to respond to marketing research online
•   Store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine market share, or to determine whether a retail store provides adequate service
•   Test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market
•   Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individual's Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.
All of these forms of marketing research can be classified as either problem-identification research or as problem-solving research.

The Importance of  PRIMARY  Research
A.   PRIMARY  research is the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities.
1.   It is a process for gathering information not currently available to decision makers.
2.   The purpose of marketing research is to inform an organization about customers’ needs and desires, marketing opportunities for particular goods and services, and changing attitudes and purchase patterns of customers.
B.   PRIMARY  research can help a firm better understand market opportunities, ascertain the potential for success for new products, and determine the feasibility of a particular marketing strategy.
C.   PRIMARY  research is used by all sorts of organizations to help develop marketing mixes to match the needs of customers.
D.   Changes in the economy have changed marketers’ decision making strategies to focus more on small-scale surveys and short-range forecasting. Businesses need speed and agility to survive and to react quickly to changing consumer behavior.
E.   The real value of PRIMARY  research is measured by improvements in a marketer’s ability to make decisions.
1.   Marketers should treat information in the same manner as other resources utilized by the organization, and must weigh the costs of obtaining information against the benefits derived.
2.   Information should be judged worthwhile if it results in marketing activities which improve the organizations ability to satisfy its target customers, leads to increased sales and profits, or helps the organization achieve some other goal.
2. (a) Middleman and their functions form an essential aspect of Marketing Channels.
Discuss with suitable examples.
-improves  customer  satisfaction.

There are fundamental economical reasons why an  organization  might prefer to exercise working  closely  with  channel resellers.
-Purchase experiences vary among different channels
- customers have different preferences with respect to purchase experiences.
-Price and non-price factors such as location, product assortment, and customer service also influence customers' channel choices.
- Multi-channel distribution enables the firm to access different customer segments, creating a potential for larger demand and market share.
-more extensive market presence increases the customers' awareness, creating higher brand loyalty for existing as well as future products.


 Wholesalers- buy product from the
manufacturer and then resell it to retailers.
 E-tailers- buy product from the wholesaler and
then sell it directly to consumer.
 Brokers- facilitate transactions between buyers
and sellers, called market makers.
 Agents- Manufacturing or Purchasing agents
depending on who they are working for.


– Making contact with buyers
– Using communication strategies to make them aware of products.
– Matching products to buyers’ needs:
• Shopping agents
• Collaborative filtering agents
– Negotiating prices
– Processing transactions


– The physical distribution such as transportation and storing inventory,
often outsourced to third party logistics providers.
-order processing,
-ensuring  timely delivery of stock.
– Physical distribution
– Aggregating products (category killers)
– Third-Party logistics (outsourced logistics)


– Include marketing research about buyers
-Accurate assessment of the size and characteristics of the target
audience helps manufacturers with product development and
marketing communications.

offer site interaction report that
details to what extent a site shares audience with another site,
showing exclusive and duplicated audience.

– Financing of purchases.
-Financing purchases is an important function, intermediaries try
to do everything possible to make it easy for customers to pay in
order to close the sale.
-Secure Electronic Transactions

-Intermediaries allow corporation to maintain
focus on their core business.

internet equivalent

• Online intermediaries are more efficient than their
brick+mortar counterpart. (Cost savings).
• Creation of new intermediary (e.g. yahoo broadcast):
• Shopping agents
• Buyer cooperatives
• Metamediaries

(b) What are the various steps in the consumer decision making process in the
following situations ?
(i) Bottled mineral water.
(ii) Purchase of Lap Top.
The consumer decision process represents a road map of consumers’ minds that marketers and managers can use to help guide product mix, communication, and sales strategies.
Stages in Consumer Decision Making (CDM)
Problem recognition
Information search
Evaluation of alternatives
Product choice
Routinized (Habitual) Problem Solving (RPS)
This is when consumers buy a brand they have purchased before, it usually involves little or no information seeking and is performed quickly. Consumers are brand-loyal and tend to buy in a habitual, automatic, and unconscious way. It is far more likely that repeat purchases will be made on the basis of habits or routines that enable the consumer to cope more effectively with life pressures

(i) Bottled mineral water.
PRODUCT  recognition
Information search
Evaluation of alternatives
Product choice

Extended Problem Solving (EPS)
Is usually initiated by motive that is fairly central to the self-concept, and the eventual decision is perceived to carry a fair degree of risk. The consumer tries to collect as much information as possible, both from memory (internal search) and from outside sources (external research). At this level, the consumer needs a great deal of information to establish a set of criteria on which to judge specific brands and a correspondingly large amount of information concerning each of the brands to be considered.
(ii) Purchase of Lap Top.
Consumers go through five stages in the process of adopting a new product:
• Awareness: The consumer becomes aware of the new product, but lacks information about it.
• Interest: The consumer seeks information about the new product.
• Evaluation: The consumer considers whether trying the new product makes sense.
• Trial: The consumer tries the new product on a small scale to improve his or her estimate of its value.
• Adoption: The consumer decides to make full and regular use of the new product. This model suggests that the new-product marketer should think about how to help consumers move through these stages. A manufacturer of large-screen televisions may discover that many consumers in the interest stage do not move to the trial stage because of uncertainty and the large investment. If these same consumers were willing to use a large-screen television on a trial basis for
a small fee, the manufacturer should consider offering a trial-use plan with an option to buy.

BUYING  STAGE          

1.Recognition of  THE   need for  a  laptop

2.Determination of product characteristics

3.Description of product characteristics

4.Search for suppliers/ locations

5.Evaluation of  various  models

6.Selection of an order routine

7.Performance feedback and evaluation


3. (a) Discuss the concept of positioning. Flow does it benefit marketers in a competitive scenario ? Suggest alternatives positioning bases for the manufacturer of wrist

The first step in the positioning process is to do the research. The good news is that product marketing managers already have done most of the research as part of their job. To successfully position a product, you need a thorough understanding of customer problems, channel issues, and how competitors are positioned. The answers to these and other questions become part of a rationale document for your positioning strategy:
What is your target market (size, type of company, etc.)?

Who is the decision maker you want to target your message to, and what keeps that decision maker awake at night?

What pressing problem does your product solve for your prospective customer?

How is your prospect solving that problem today?

What specific benefit does your product deliver?

Why is your product better than the current solution and competitive alternatives?

Who are your key competitors; why and when do you win or lose to them?

How do your competitors position themselves in their marketing communications, including ads, direct mail campaigns, brochures, and web sites?

What makes your product unique in a way that is relevant to your prospect?

Are there any problems, unique challenges, or special needs of your channel?

What do prospects and customers like and dislike about your product?

Do prospects and customers share your belief of why your product is better than the competition’s?

Are there any characteristics of a sales situation that indicate whether or not your product or service will be selected?

Now incorporate the answers to these questions in a rationale document. By doing so, all product knowledge is captured in one place and can be used as a reference guide when marketing and sales need it. The rationale document should be three to five pages and should include this information:
Product Category—Define the product’s key features, advantages, and benefits. A matrix can help clarify these items.

Product Line Fit—Describe how the product fits into the overall company product strategy.

Situation Analysis—Describe the conditions that justify the release of this product, including why the company believes it can be successful.

Market Analysis—Profile target market(s) by size, revenue, market segment, operational type, or other relevant categories.

Audience Analysis—Profile key prospects within the target market(s), including job titles and functions (demographics) and their concerns, attitudes, and behaviors (psychographics).

Distribution—Describe how the product will be distributed and the impact of distribution on product communications.

Competitive Positioning—Describe the key competitors, their targets, and how they position their products.

Positioning Statement and Rationale—Evaluate the product positioning statement against the following four criteria: Is it important, unique, believable, and usable?

Support Points—Describe how the three support points make the positioning statement unique, believable, and important. If multiple markets or audiences require unique support points, explain why.
A rationale document transfers important product knowledge to those who need to know, but who don’t have the time or expertise to find the information themselves. It’s especially useful when creating a product message strategy that includes a positioning statement (number 8 in the rationale document) and three or four support points (number 9).

Your positioning statement becomes the central idea and theme underlying all marketing activities. It is a short, compelling, declarative sentence that states just one benefit and addresses the target market's number one problem. It must be unique, believable, and important, or the target market will ignore the message. Once you have found the right message, your product marketing managers won’t need to be involved in every planning session for every marketing campaign.
Supporting benefit statements tell the story in more detail. They also provide a structure for product demonstrations. While the positioning statement articulates a high-level benefit, the claims made in the supporting statements should be readily demonstrable. That is, in just a few steps, you should be able to show how the product delivers concrete benefits.
Make sure your message strategy has enough detail to support the creation of a standard product demonstration. This helps your product marketing managers to create a demo quickly. And there’s another benefit—the product detail in the support points answers a lot questions before marketing and sales ask them.
A message strategy also facilitates delivery of the same message across all marketing media, including web sites, brochures, advertisements, and presentations to investors, industry analysts, and prospects. A standard outline format makes it easy for writers and other communicators to see the message strategy's benefit hierarchy, and to take full advantage of it.
A Rationale Document Captures All the Product Knowledge
In addition to documenting product knowledge, the positioning process improves marketing without intense, time-consuming input from product marketing. A message strategy is like the recipe for how to talk about your product. Follow the recipe rather than ask product marketing, and your marketers can create a compelling, accurate story about your product.
This does not mean that your product marketing managers no longer need to be involved in the planning and creation of marketing materials. They should provide input when appropriate. It’s just that the process won’t take up nearly as much of their time. That’s because marketing gets most of its infusion of product knowledge by referencing the rationale document and message strategy. And that means your product marketing managers have successfully cloned themselves; they’ll have more time for other competing priorities.

*SEGMENT----- middle  class.
*TARGET----upper  income  brack [ 400,000  ----1mill rupees]
*POSITIONING -----affordable /  CONVENIENT.
*SEGMENT-middle  class
*TARGET - FAMILIES  with  median  income.
*POSITIONING ----entertainment for  all  situations.


The act of  designing the company’s offering and image  tooccupy a distinctive place in the  minds of the target
•   Result is the creation of a customer-focused value proposition:
o   A cogent reason why the target market should buy the product. ompetitive Frame  of Reference
•   Category  membership—the products or sets of products with which a brand competes and which function as close substitutes.
•   Need to understand consumer behavior and the consideration sets consumers use in making brand choices.
Points-of-Parity  and Points-of-Difference
Points-of-difference  (PODs)
•   Attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they couldn’t find to the same extent with a competitive brand.

Points-of-parity  (POPs)
•   Associations that aren’t necessarily unique to the brand but may in fact be shared with other brands.
o   Category points-of-parity
o   Competitive points-of-parity
Establishing  Category Membership
•   Announcing category  benefits
•   Comparing to exemplars
•   Relying on the product descriptor
Key Criteria  for Points-of-Difference
Desirability Criteria
•   Relevance
•   Distinctiveness
•   Believability

Deliverability Criteria
•   Feasibility
•   Communicability
•   Sustainability
Differentiation  Strategies
•   Competitive  advantage—a company’s ability to perform in one or more ways that competitors can’t or won’t match.
o   Few are sustainable, but a leverageable advantage can be used as a springboard to new advantages.
o   Focus on building competitive advantages as customer advantages.
Product Differentiation
•   Form
•   Features
•   Customization
•   Performance quality
•   Conformance quality

•   Durability
•   Reliability
•   Repairability
•   Style
•   Design
Service Differentiation
•   Ordering ease
•   Delivery
•   Installation
•   Customer training
•   Customer consulting
•   Maintenance and repair
•   Returns
Other Dimensions  of Differentiation
•   Personnel
•   Channel
•   Image
Five Forces  that Determine Marketing Attractiveness
•   Industry competitors
•   Potential entrants
•   Substitutes
•   Buyers
•   Suppliers
Threats Posed  By These Forces
•   Threat of intense  segment rivalry.
•   Threat of new entrants.
•   Threat of substitute products.
•   Threat of buyers’ growing bargaining power.
•   Threat of suppliers’ growing bargaining power.
Industry and  Market Views of Competition
•   Industry—a group of firms that offers a product or class of products that are close substitutes for each other.
•   Classified by:
o   Number of sellers
o   Degree of product differentiation
o   Presence or absence of entry, mobility, and exit barriers
o   Cost structure
o   Degree of vertical integration
o   Degree of globalization

Analyzing Competitors
•   Strategies
•   Objectives
•   Strengths
•   Weaknesses
Competitor Strengths  and Weaknesses
•   Share of market
•   Share of mind
•   Share of heart
Selecting Competitors
•   Strong  vs. weak—most companies aim at weak competitors.
•   Close vs. distant—most companies compete with the rivals that resemble them the most.
•   “Good” vs. “bad”—good competitors play by industry rules, make realistic assumptions, set reasonable prices, and favor a healthy industry.
Competitive Strategies
•   Leader
•   Challenger
•   Follower
•   Nicher
Market-Leader  Strategies
•   Expanding the total  market
•   Defending market share
•   Expanding market share
Market-Leader  Strategy:
Expanding the Total Market
•   Market-penetration strategy
•   New-market segment strategy
•   Geographical-expansion strategy
Market-Leader  Strategy:
Defending Market Share
•   Position defense
•   Flank defense
•   Preemptive defense
•   Counteroffensive defense
•   Mobile defense
•   Contraction defense
Market-Leader  Strategy:
Expanding Market Share
•   Factors to consider  before pursuing:
o   The possibility of provoking antitrust action
o   Economic cost
o   Pursuing the wrong marketing activities
o   The effect of increased market share on actual and perceived quality
Other Competitive  Strategies
•   Market-challenger strategies
•   Market-follower strategies
•   Market-nicher strategies
Market-Challenger  Strategies
•   Define the strategic  objective and opponents.
•   Decide who to attack:
o   Market leader
o   Market equals that are underperforming
o   Small local and regional firms
Attack Strategies
•   Frontal attack
•   Flank attack
•   Encirclement attack
•   Bypass attack
•   Guerilla warfare
Market-Follower  Strategies
•   Counterfeiter
•   Cloner
•   Imitator
•   Adapter
Specialized Niche  Roles  
•   End-user  
•   Vertical-level
•   Customer-size
•   Specific-customer
•   Geographical
•   Product or product-line

•   Product-feature
•   Job-shop
•   Quality-price
•   Service
•   Channel
Balancing Customer  and Competitor Orientations
Competitor-centered  company
•   Looks at what competitors are doing and then formulates competitive reactions.

Customer-centered  company
•   Focuses more on customer developments in formulating its strategies.

(11) Discuss the factors that are major determinants of promotion mix of an organisation.

   Components of
Integrated Marketing
   Corporate Communication
   Crisis Communication
   E-Commerce
   Event Marketing
   Internal Communication
   Issues Management
   Marketing
   Multimedia
   Public Relations
   Sales Promotion
   Strategic Planning
   Web Design

   Factors That Affect  The Promotion Mix

   Type of Product
   Stage in the Product Life Cycle
   Target Market Characteristics
   Actions of Competitors
   Available Funds

Factors that determine the type of promotional tools used
Each of the above components of the promotional mix has strengths and weaknesses. There are several factors that should be taken into account in deciding which, and how much of each tool to use in a promotional marketing campaign:
(1) Resource availability and the cost of each promotional tool
Advertising (particularly on television and in the national newspapers can be very expensive). The overall resource budget for the promotional campaign will often determine which tools the business can afford to use.
(2) Market size and concentration
If a market size is small and the number of potential buyers is small, then personal selling may be the most cost-effective promotional tool.
A good example of this would be businesses selling software systems designed for supermarket retailers. On the other hand, where markets are geographically disperse or, where there are substantial numbers of potential customers, advertising is usually the most effective.
(3) Customer information needs
Some potential customers need to be provided with detailed, complex information to help them evaluate a purchase (e.g. buyers of equipment for nuclear power stations, or health service managers investing in the latest medical technology). In this situation, personal selling is almost always required - often using selling teams rather than just one individual.
By contrast, few consumers need much information about products such as baked beans or bread. Promotional tools such as brand advertising and sales promotion are much more effective in this case.

4. what is market segmentation? name two ways the market for each of the following product might be segmented
1. magazines
2. bicycles
3. perfumes
Market Segmentation

A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy. That is, they are likely to have similar feelings and ideas about a marketing mix comprised of a given product or service, sold at a given price, distributed in a certain way and promoted in a certain way.
Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private sector. Small segments are often termed niche markets or specialty markets. However, all segments fall into either consumer or industrial markets. Although it has similar objectives and it overlaps with consumer markets in many ways, the process of Industrial market segmentation is quite different.
The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behaviour; and to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Revenues are thus improved.
Improved segmentation can lead to significantly improved marketing effectiveness. With the right segmentation, the right lists can be purchased, advertising results can be improved and customer satisfaction can be increased

The purpose for segmenting a market is to allow your marketing/sales program to focus on the subset of prospects that are "most likely" to purchase your offering. If done properly this will help to insure the highest return for your marketing/sales expenditures. Depending on whether you are selling your offering to individual consumers or a business, there are definite differences in what you will consider when defining market segments.

Category of Need
The first thing you can establish is a category of need that your offering satisfies. The following classifications may help.

For businesses:
•   Strategic - your offering is in some way important to the enterprise mission, objectives and operational oversight. For example, a service that helped evaluate capital investment opportunities would fall into this domain of influence. The purchase decision for this category of offering will be made by the prospect's top level executive management.
•   Operations - your offering affects the general operating policies and procedures. Examples might be, an employee insurance plan or a corporate wide communications system. This purchase decision will be made by the prospect's top level operations management.
•   Functional - your offering deals with a specific function within the enterprise such as data processing, accounting, human resources, plant maintenance, engineering design, manufacturing, inventory control, etc. This is the most likely domain for a product or service, but you must recognize that the other domains may also get involved if the purchase of the product or service becomes a high profile decision. This purchase decision will be made by the prospect's functional management.

For the individual consumer:
•   Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer. Examples are a mink coat or a diamond ring. There are some products that are on the boundary between this category and the Functional category such as a Rolex watch (a Timex would satisfy the functional requirement and probably keep time just as well).
•   Functional - your offering meets a functional requirement of the consumer such as a broom, breakfast cereal or lawnmower.


Then you should establish what the need is and who is most likely to experience that need. Your segmentation will be determined by a match between the benefits offered by your offering and the need of the prospect. Some "need" categories for segmentation include:
Reduction in expenses
Prospects might be businesses that are downsizing (right sizing), businesses that have products in the mature stage of their life cycle or individuals with credit rating problems.
Improved cash flow
Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.
Improved productivity
Prospects might be businesses that have traditionally low profit margins, businesses that have recently experienced depressed earnings or individuals with large families.
Improved manufacturing quality
Prospects might be businesses with complex, multi-discipline manufacturing processes.
Improved service delivery
Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.
Improved employee working conditions/benefits
Prospects might be businesses where potential employees are in short supply.
Improvement in market share/competitive position
Prospects might be new entrants to a competitive market.
Need for education
Prospects might be businesses or individuals looking for books on business planning, or seminars on Total Quality Management.
Involvement with social trends
Prospects might be businesses concerned with environmental protection, employee security, etc. or individuals who believe in say 'no' to drugs, anti-crime, etc.
Specific - relating to product/service characteristics
Prospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality, durability, etc.

Factors that segment prospects
Having determined the more general segmentation characteristics you can proceed to a more detailed analysis of the market. There are literally thousands of ways to segment a market, but the following are some of the more typical segmentation categories.

For businesses:
Industry by SIC code
This is especially beneficial for vertical market offerings.
Size - revenues, # employees, # locations
In general if your offering is highly sophisticated, requires significant resources or provides greater value based on volume, then the target should be the larger enterprises.
Job position/responsibility
Examples of offerings might be planning software for managers or cleaning agents for maintenance managers.
Examples of offerings might be dehumidifiers in areas near the ocean or snow plows in northern areas.
Time related factors
Some services in this category are vacation related industries in summer and tax planners in the spring.
An example of a language specific service is a Spanish TV channel.
Status in the industry
You might want to target businesses that are the technology leader or revenue leader or employee satisfaction leader, etc.
To minimize promotion and sales expense you may want to target urban rather than rural or local rather than national prospects.
Future potential
A good example is how Apple Computer supplied products to schools at all levels to condition students graduating into the marketplace.
Ability to make a quick purchase decision
Targeting individual purchasers versus business committees can significantly reduce marketing expense and increase the probability of a quick close.
Access (or lack of access) to competitive offerings
Cable TV business's significant investment in their service delivery system has allowed a near monopoly for some time. IBM's service reputation insured minimal competition during the mainframe days.
Need for customization
Offerings such as police cars, busses for municipalities and specialized computer systems fall into this category.
Product or service application to a business function
Examples are data processing, accounting, human resources and plant maintenance.
For Individual Consumers:
Physical Size
Offerings might be big men's clothing, golf clubs for shorter players, etc.
Creation of or response to a fad
Examples are hula hoops, Jurassic Park T-shirts, pet rock, physical fitness, etc.
Geographic location
Marketers take advantage of location by selling suntan lotion in Hawaii, fur coats in Alaska, etc.
Time related factors
You may be able to target vacationers in summer, impulse buyers during the holidays or commuters at 7AM.
Ethnic products would fall into this category.
Product examples are scarves for women, ties for men, etc.
Product examples are toys for children, jewelry for women, etc.
Social status
This could include country club memberships, philanthropic contributions, etc.
Product and service examples are encyclopedias, scientific calculators, learning to read tools and financial counseling.
This could include products for hunting, fishing, golf, art work, knitting, etc.
Special Interests
You could target cat lovers, science fiction readers, jazz music collectors, etc.
Because the individual is more difficult to reach you may want to segment by urban versus rural, train commuters, people who read Wall Street Journal, etc.
Access (or lack of access) to competitive offerings
Due to high investment capital requirements or timing of market entry you may be able to capture a significant market share in a specific geographical area. Examples might be a trash service, emergency medical support, etc.
Need for specific information
Based on features or content of your offering you can target a market segment. A product might be books on how to start a business or a service might be seminars on how to quit smoking.
Need for customization
Product/service examples are home decoration, fashion wear, personal portraits, etc.
Need for quality, durability, etc.
Product examples are mountain climbing gear, carpenter's tools, etc.
Degree of a product/service ingredient
Segmentation based on prospect preferences is common. An example is dark chocolate for some tastes, light chocolate for others.
While market segmentation can be done in many ways, depending on how you want to slice up the pie, three of the most common types are:
•   Geographic segmentation – based on location such as home addresses;
•   Demographic segmentation – based on measurable statistics, such as age or income;
•   Psychographic segmentation – based on lifestyle preferences, such as being urban dwellers or pet lovers.
If you’re interested in target marketing, the first step is to do the research that will help you define and zero in on your target market.
The requirements for successful segmentation are:
homogeneity within the segment
heterogeneity between segments
•   segments are measurable and identifiable
•   segments are accessible and actionable
•   segment is large enough to be profitable
These criteria can be summarized :
•   D Differential: it must respond differently to a different marketing mix
•   A Actionable: you must have a product for this segment to be accured
•   M Measurable: size and purchasing power can be measured
•   A Accessible: it must be possible to reach it efficiently
•   S Substantial: the segment has to be large and profitable enough
The variables used for segmentation include:
1.Geographic variables

region of the world or country, East, West, South, North, Central, coastal, hilly, etc.
country size/country size : Metropolitian Cities, small cities, towns.
Density of Area Urban, Semi-urban, Rural.
climate Hot, Cold, Humid, Rainy.

2.Demographic variables

-gender Male and Female
-sexual orientation
-family size
family life cycle
Education Primary, High School, Secondary, College, Universities.

3.socioeconomic status


4.Psychographic variables

life style

5.Behavioural variables

benefit sought
product usage rate
brand loyalty
product end use
readiness-to-buy stage
decision making unit

When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as depth segmentation.
When enough information is combined to create a clear picture of a typical member of a segment, this is referred to as a buyer profile. When the profile is limited to demographic variables it is called a demographic profile (typically shortened to "a demographic"). A statistical technique commonly used in determining a profile is cluster analysis.
etc etc.



Notice that the perceived value of any given offering will be the synergetic effect of all the marketing mix and non-marketing mix elements of that offering.
In Economic terms, the total utility will be composed of the various component utilities such as posession, time, place, and even symbolic utility.
In a very fundamental sense, an offering is worth exactly what people are willing to pay for it. If two companies command different prices for products that seem to be identical in all respects except for the brand, it merely demonstrates that the brand has symbolic value to the customer. This symbolic value of a brand is often equated with brand equity.

POSITIONING  is not the same as Segmentation, but is intimately related.

When a company seeks to set itself apart from its competitors by focusing on only one of the attributes of it's offering, the benefit from this attribute is often called the offering's Unique Selling Proposition, or USP


-segmentation  by  social  values.
-political  segmentation
-issues  positions.
like  environment  etc.
-media  consumption  habits
-phone usage
-brand  equity

Segmentation Bases
There is a large array of possible segmentation bases.  Some of these are briefly described below.
Consumers can be grouped on the basis of characteristics such as age or household composition.  This is easy to do and it is easy to reach such segments with media.  But age and other demographics are only loosely related to behaviour.
Socioeconomic Characteristics
Similarly, characteristics such as income, occupation and education can be used to derive segments that are easy to reach.  Such segments are indicators (although not perfect) of behaviour such as lifestyle, price sensitivity, and brand preference.
Product Usage
Potential to use the firm’s product is a behaviourally based segmentation basis.  Potential could be determined by administering questions about disposition to use (such as awareness, used in the past, would consider using) in a survey and respondents grouped accordingly.  The problem is then how to reach the most attractive segments.  This is done either by using a large-scale single source survey (such as ACNielsen Panorama) that asks consumers about product disposition and media usage or by relating product disposition to demographics.  Both approaches are usually imperfect as behaviour is rarely strongly correlated with demographics or media usage.
Personality, attitudes, opinions, and life styles are often used a segmentation bases.  These characteristics have some relationship to behaviour and provide insight into how to communicate with chosen segments.  Reaching the chosen segments is then the issue, as discussed under product usage, above.
Generation, or cohort, refers to people born in the same period of time.  For example, the Baby Boomer generation can be defined as those people born between 1946 and 1955.  Such cohorts share much in common.  Not only are they of a similar age, but they experienced similar economic, cultural, and political influences in formative years.  Thus generation is probably a better segmentation basis than age and just as easy to reach.
Benefits Sought
Some people are price sensitive, others seek quality or service.  Some people are brand loyal, while others frequently switch brands.  It is possible to group consumers on the basis of these factors.  Note that price/quality sensitivity can vary by category.  Some people are very concerned about the quality of the food they eat but will buy cheap laundry detergent.  Others will feed themselves any rubbish but are fastidious about cleanliness.  This is a very powerful basis for segmentation but it is not easy to buy media on this basis.  These segments can be reached by the message (self-selection) but this is not necessarily cost effective.  
There are two reasons why people who live in the same area may share similar characteristics.  First, some areas have more expensive properties than others and so people with similar socioeconomic characteristics may cluster together.  Second, they have similar transport and shopping options.  It is easy to reach particular areas by using local newspapers, cinema, outdoor, and selective direct mail but mass media is less effective.
There are several commercial geodemographic segmentation schemes available, that combine demographics and geography as a segmentation basis.  This approach aims to identify groups of small geographic areas that have similar demographic profiles.  These tend to suffer from the fallacy of averages.  Some areas may be genuinely relatively homogenous but many are not and this can be very misleading.
1.   magazines
- Psychographics
- Geodemographic
2. Bicycles
-Socioeconomic Characteristics

3. perfumes
- Socioeconomic Characteristics
-Product Usage

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Leo Lingham


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