Identify your customers – segmentation bases

identify your customers – segmentation, targeting, and positioning

Targeting

Position

Value

  • The relationship of price to quality…..
  • Different consumers = different value

Product attributes

Focus on the attributes that are most important and varies by target market.

Benefits & symbolism

Emphasizes the benefits of the brand as well as the psychological meaning of the brand to consumers.

Competition

Has two options:

  • Position against a specific competitor
  • Position against an entire product classification

Positioning Maps

  1. Identify the important attributes for a product or brand class
  2. Discover how target customers rate competing products or brands with respect to these attributes
  3. Discover where the company’s product or brand is on these attributes in the minds of potential customers

why innovation – ideas and economic growth: four categories of goods and produciton function

K – Capital: Diminishing Returns

L – Labor (Human Capital): Diminishing Returns

A- ideal/producticity: increasing Returns

the technology S-curve

the product life cycle

identify your customers – establish overall strategy or objectives

IF The marginal benefit Exceeds the marginal cost, do it.

marketing mix – promotion

opportunity

business decision making

Elasticity

cost diagrams

process innovation: trade

marketing mix – pricing: demand, supply, equilibrium

demand

Quantity demanded : The amount of a good or service that a consumer is willing and able to purchase at a given price

Supply

For a particular good or service, the quantity that producers are willing and able to supply to the market at any given price.

Quantity supplied : The amount of a good or service that a firm is willing and able to supply at a given price.

Equilibrium

shor run cost

market opportunity through regional analysis