Week 25 (6.10.07)

Learn

Segmentation

A market segment is a set of potential buyers who have common needs and are alike in the way they perceive the product, value it, buy it, and use it.

Reason why companies segment:
most companies have a limited amount of time, people and money, so they must focus their efforts where they will pay the biggest dividend. Successful firms eliminate areas of least interest and concentrate their efforts on the most productive segments.

Segmentation - is critical for helping marketer pick clear targets to aim at.
- helps establish company's priorities and define product specifications
- helps establish distribution channels and the level and mix of advertising
- helps the marketer identify competitive weakness so he/she can shift
marketing efforts from low to high priority. Set strategies withing the segment.
Segmentation matrix - visualize the opportunities that might be available within the market

Horizontal marketer - referred to as product specialist - help the firm build a strong reputation for a particular product. The disadvantage is, if new product emerges, that product may become obsolete.

Vertical marketer - referred to as market specialist - upside is company gains a place as full-service or product supplier. The disadvantage is, downturns, budget cuts or company rationalizations within one industry, may be fatal to the vertical marketer.

Niche marketer - referred to as single-segment focused - company strategy is develops strong customer solutions and achieves a very strong position. Eg: Mont Blanc focused on high-end pen users

Unlearnt

Did not fully understand the link and strategies in the segmentation matrix. I only see the opportunities from the Class A & B of customers, not seeing the opportunities which i can expand with the right strategies for Class C in the horizontal marketing concept while maintaining product SCA.

Relearn

Reposition Celebrex for the acute pain in Class C customers (doctors whom are not using ethical products because cost is major concern). Sharing on the benefits of Celebrex when doctors are treating older patients whom may have concomitant disease such as heart attack, stroke and cardiovascular problems. Therefore, in this older group of patients, doctors should consider using Celebrex which is safer for them, because Celebrex has been proven its cardiovascular safety. In addition, it will also improves doctor-patient confidence and relationship when benefitting from Celebrex.