Market Definition, Market Segmentation and Brand Positioning

Market Definition, Market Segmentation and Brand Positioning

48 Pages · 2005 · 158 KB · English

Marketing Strategy What geographic area will we operate in? What timeframe do we have in mind? Meaning of a car (e.g., status symbol, reliable transport,

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Market Definition, Market Segmentation and Brand Positioning Greg Allenby Ohio State University Marketing Concept Offer goods and services that fit into the lives of individuals. Don’t attempt to change the lives of individuals so that they fit the offering. The Marketing Concept and Return on Investment (ROI) The consumer side of the market: Good return is obtained with offerings that are relevant to the existing activities of individuals, made at a general price they find acceptable, made available at outlets they already frequent. At the heart of successful market definition is the concept of a prospect – a person who might conceivably part with their money for the right to acquire and use some version of your product category. For the planning period, some people are in your market and others are not. People whose present and planned pursuits have no place for some version of your product category are best left out of your calculations. How Useful is a Regression Model? A factor analysis model? What model should you use? What is the likelihood? The Marketing Concept and Return on Investment (ROI) The producer side of the market: Firms more likely make money by building on their existing competencies and expertise. While core competencies can be developed over the long-term, the analysis and evaluation of a specific venture is better made in terms of a firm’s existing expertise. What Model? Kinds of Exchange At any time, in any geographic region, buyers and seller engage in countless exchanges … … most of which are irrelevant to any single venture! Defining a market involves stating the kinds of exchange that are relevant to your venture. Elements of a universe that are of interest. Boundaries of analysis. Rules of the Game Objective : to make a satisfactory return on investment by engaging in exchange. Therefore, prospects must be: Notified of the offering’s existence (e.g., national media, direct mail, etc.). Able to engage in physical exchange. Implication : Existing competencies

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