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Chapter 8: Market segmentation, targeting, and positioning. When you finish this chapter, you should: Explain what market segmentation is and when to use it; identify the five steps involved in segmenting and targeting markets; recognize the bases used to segment consumer and organizational markets;. | McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Explain what market segmentation is and when to use it. LO1 Identify the five steps involved in segmenting and targeting markets. Recognize the bases used to segment consumer and organizational markets. LO3 LO2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO: 8- Develop a market-product grid to identify a target market and recommend resulting actions. Explain how marketing managers position products in the marketplace. LO4 LO5 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO: 8- ZAPPOS.COM’S “WOW” = SEGMENTS + SERVICE A Clear Market Segmentation Strategy Delivering WOW Customer Service 8- WHY SEGMENT MARKETS? WHAT MARKET SEGMENTATION MEANS LO1 Product Differentiation Market Segmentation Market Segments Segmentation: Linking Needs to Actions The Zappos Segmentation Strategy 8- FIGURE 8-1 Market segmentation links market needs to an organization’s marketing program through marketing mix actions 8- FIGURE 8-2 A market-product grid shows the kind of sleeper that is targeted for each of the bed pillows with a different firmness Using Market-Product Grids 8- WHY SEGMENT MARKETS? WHEN AND HOW TO SEGMENT MARKETS LO1 One-Size-Fits-All Mass Markets No Longer Exist One Product and Multiple Market Segments Multiple Products and Multiple Market Segments 8- Sporting News Baseball Yearbook What market segmentation strategy is used? LO1 8- WHY SEGMENT MARKETS? WHEN AND HOW TO SEGMENT MARKETS LO1 Segments of One: Mass Customization Mass Customization Build-to-Order (BTO) 8- WHY SEGMENT MARKETS? WHEN AND HOW TO SEGMENT MARKETS LO1 The Segmentation Tradeoff: Synergies vs. Cannibalization Organizational Synergy Cannibalization “Tiffany/Walmart” Strategies 8- FIGURE 8-3 The five key steps in segmenting and targeting markets that link market needs to a firm’s . | McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Explain what market segmentation is and when to use it. LO1 Identify the five steps involved in segmenting and targeting markets. Recognize the bases used to segment consumer and organizational markets. LO3 LO2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO: 8- Develop a market-product grid to identify a target market and recommend resulting actions. Explain how marketing managers position products in the marketplace. LO4 LO5 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO: 8- ZAPPOS.COM’S “WOW” = SEGMENTS + SERVICE A Clear Market Segmentation Strategy Delivering WOW Customer Service 8- WHY SEGMENT MARKETS? WHAT MARKET SEGMENTATION MEANS LO1 Product Differentiation Market Segmentation Market Segments Segmentation: Linking Needs to Actions The Zappos Segmentation Strategy 8- FIGURE 8-1 Market segmentation links