ECON344 Study Guide - Midterm Guide: Demand Curve, Variety Store, Petro-Canada
10 Jul 2016
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Lecture 12: chapter 9 continued: market segmentation, targeting & positioning. Step 2: market product grid; estimate size of market. Grid helps to show which market(s) you are targeting by product line & potential for sales in each cell. Initial info is often a guestimate but a good start. Selecting the target market has to be the perfect balance between too narrow and too broad. Dividing market into segments based on: profit potential, similarity of needs, marketing action to reach segment, simplicity and cost of actually reaching the segment, geographic, demographic, psychographic, personality, lifestyle, behavior. How to actually choose target segments: market size (is it worth it?, expected growth, competition, cost of reaching market, compatibility with your company. Step 5: how to reach your target market: Positioning: a customer"s viewpoint about your product; the space your product occupies in their head. Two approaches: head-to-head: direct competition, similar market, same target (ex.
