Summer+2009+Section+08-PS+Week+2

=Week 2=

Market Analysis
- Segmentation - Customer lifetime value
 * Note: Demographics are the worst way to do market segmentation. Think about is, 18-25 year olds are //not// homogenous!

Select Target Market
- Consumer Segmentation - Needs and benefits Paul said, "Shopping is the ongoing maintenance of a customer's product-space awareness occasionally punctuated by a purchasing event." This means that as marketers and salespeople, we always need to be aware of where a customer is in the buying process. Have they done lots of research and are close to buying? Are they just beginning their search? [|Amazon]is able to know how close a customer is to buying based on the search terms. If a customer just searches for a 'camera' then they are probably very early in their search. If they search for a [|Nikon D90] camera, they are very close to buying and Amazon wants to close out that sale.
 * - Need “Gravity” & Purchasing Behaviors -**

Differentiation and positioning
- Vertical (BMW vs Camry, price difference) - looking more at the quality of the product. - Horizontal (Camry vs Civic, Taste difference)

Advertising Segmentation
Example: seeing clothes on a manikin and thinking they will look the same on you.
 * Mirror neuron

Ideal and Real Segmentation


Consumer Products - Functional - Emotional - Social

Strategy as a Revolution - Rule Makers - Rule Takers - Rule Breakers


 * __Fun Quote from Paul__: Every survey is a lie!

//**Case - The Fashion Channel**// Team Breakout Sessions: __**Love's Ladies**__ TFC scenario for highest return: Stategic approach-
 * What: focus two groups 1. Fashionistas (18-34y.o.) 2. Shopper/Planners (35-54)
 * How much: increase CPM rating. increase program spending average 3.0 to build customer base. Cost to us $20million. Our profit margin $345-$380million based on excel spreadsheet figures.
 * Where: advertise during prime time to female base. e.i. Grey's Anatomy, Angry Housewives.
 * When: 1 year period.
 * How: By implementing Scenario 3.
 * Why: increase profits
 * Programming ideas to create more viewers which in turns increases profits due to higher cost of advertising time on the TFC. To cater to Fashionistas- reality fashion shows, celebrity news. Shopper/Planners - How to shows, makeovers.

__**Team Gestalt**__ Oh no! Pirates have started to attack Fort TFC and carting away our men and our young (18-34 y.o.) females! //Our analysis://
 * TFC has spread its focus too wide, and is losing advertisers because it doesn't have a strong fashion-focused viewer base
 * CNN and Lifetime are presenting basic, sometimes celebrity-focused programs that appeal to a broad market

//Our recommendation://
 * TFC should focus its programming on the Fashionistas and the Shoppers/Planners - the two most fashion-centric groups
 * This will lead to an **increase in ratings**  and an  **increase in CPM**  - thus increasing ad revenues
 * Allow CNN and Lifetime to take the Situationalists and the Basics - those least focused on fashion - and increase their interest through their own programming, then advertise TFC programs during CNN's and Lifetime's fashion shows to try to gain back those viewers once they are more interested in higher-end fashion