Transcript
MARKET SEGMENTATION AND
TARGETING
MARKETING SEGMENTATION :-MARKETING SEGMENTATION :- Market
Segmentation is the process of dividing a total market into distinct subset of consumers with relatively similar product needs.
MARKET SEGMENT:-MARKET SEGMENT:- A Market Segment
is a group of individuals or organizations that have relatively similar product needs.
MASS MARKETING
8-4
Ford’s Model T Followed a Mass Market Approach
…and so did Hindustan Motors (Ambassador Cars) and Premier Automobiles (Fiat)
ADVANTAGES OF MASS MARKETING
8-7
Segment Marketing
Targeting a group of customerswho share a similar set ofneeds and wants.
8-8
Basic Market Preference Patterns
ADVANTAGES OF SEGMENTATION
8-10
Four levels of Segmentation
Segments
Local areas Individuals
Niches
8-11
Customerization
Combines operationally drivenmass customization with customizedmarketing in a way that empowersconsumers to design theproduct and service offeringof their choice.
8-12
Examples of Market Customization
MARKET SEGMENTATIONMARKET SEGMENTATION
Definition of Market
Identify AlternativeBases for Segmentation
Select best bases for Segmentation
Develop Marketing Mix for each tgt. Market
Develop Positioning for Target Segments
Identify & Select Market Segments
Process of Market
Segmentation
Positioning
Market Mix Development
BASES FOR MARKET SEGMENTATIONBASES FOR MARKET SEGMENTATION
A) CHARACTERISTICS OF THE BUYER
1) Demographic
2) Geographic
3) Psychographic
B) RESPONSES ( BEHAVIOUR) OF BUYERS
1) Behavioural Segmentation
2) Benefit Segmentation
8-15
Demographic Segmentation
Age and Life CycleAge and Life Cycle
Life StageLife Stage
GenderGender
IncomeIncome
GenerationGeneration
Social ClassSocial Class
Psychographic Segmentation
Psychographic Segmentation
AIO CLASSIFICATION (Attitudes, Interests and Opinions)
8-18
The VALS Segmentation System
8-19
Behavioral SegmentationDecision Roles Initiator Influencer Decider Buyer User
Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude
BEHAVIOURAL SEGMENTATIONBEHAVIOURAL SEGMENTATION
* User Status:1. Non- Users (i) Exusers (ii) Potential users2. First Time Users3. Regular Users
* Usage Rate / LevelsUsers / Non-Users1. Users 2. Non Users (i) Heavy Users (i) Never Used (ii) Medium Users (ii) Lapsed users
(iii) Light Users (iv) Occasional Users
*Loyalty Status (1) Hardcore Loyals (2) Split Loyals (3) Shifting Loyals (4) Switchers
8-21
Loyalty Status
Switchers
Shifting loyals
Split loyals
Hard-core
8-22
Behavioral Segmentation Breakdown
SEGMENTATION OF OUTBOUND SEGMENTATION OF OUTBOUND ( Leisure ) TRAVELLERS( Leisure ) TRAVELLERS
(1) The First Time Travellers: The first time travellers doing the Singapore or the Dubai Leg. Are often small time traders & first rung executives who prefer travelling in groups.
(2) The Second Time Travellers: The second time travellers who opt for westward bound packages- usually Europe or U.S . Prosperous traders, small industrialists & senior executives who prefer to chill out for 10-15 days in Europe & U.S.
(3) The Frequent Travellers : The frequent travellers who go for individual planned tours & opt for longer stays.
(4) Super –Premium Travellers: Super-Premium travellers who choose non-typical destinations & luxury accommodation.
The (3) & (4) categories are senior executive top Businessmen industrialists who
are divided into two categories a) Apartment tourists b) Royals ( Mediterranean villa / A tour of
Canadian Rockies; Ship cruises etc)
BENEFIT SEGMENTATIONBENEFIT SEGMENTATION
Example : Benefit Segmentation in Toothpaste Market
Segment Benefit Sought Other Characteristics
1) Sensory Flavor + Product Usually Children segment appearance
2) Social Sound, bright teeth Outgoing & active, segment + freshness of breath young.
(sometimesalso smokers)
3) Worrier Decay Prevention Heavy Users; Family segment
4) Independent Low Prices Predominantly male; / Economy Little Loyalty; buy segment brand on offer.
Segment Benefit Airline Focus Sought Product Element
Economy Travel at Airplane (T) TransportationTravellers Low cost Transportation
Business Convenient Service Schedule (I) Service Professionals Timings Schedule
Tourists Convenience in Preflight Services (I) Transportation
Pre-flight & Post Flight help (I) Pre & Post Postflight Flight Services arrangements
Dignitarks Exquisite Comfort & Customer Food, Rich Class travel Care (I) Beverages,
Extras
Cargo Punctuality Pre-Post
High Facilities
1. Measurability: Can you identify the segment? Need for
combination of concrete (e.g.. age) & abstract descriptors.
2. Accessibility:Can you reach the segment through advertising,
sales force or distributors, transportation and warehousing? Segments defined to facilitate targeting of marketing efforts. Segmentation variables must identify members in ways that facilitate their contact.
3. Different response: Segments must respond differently to one or
more marketing variables. Segmentation variables must maximize behavioral differences between segments.
4. Substantiality:Is the segment large enough to bother with?
Sufficient potential customers in each segment involves trade-offs between customer homogeneity & scale effects.
REQUIREMENTS FOR EFFECTIVE REQUIREMENTS FOR EFFECTIVE SEGMENTATIONSEGMENTATION
EVALUATION OF MARKET SEGMENTSEVALUATION OF MARKET SEGMENTS
1) Sales Estimate for the Segment
i)Market Potential
ii) Company Sales Potential
2) Growth Expected
3) Characteristics of Segment
I) Competitive Assessment
ii) Threat of Substitute Products
iii) Buyer’s Bargaining power
iv) Supplier’s Bargaining Power
4) Company’s Objective Resources
ALTERNATIVE APPROACHES TO TARGET ALTERNATIVE APPROACHES TO TARGET MARKET SELECTIONMARKET SELECTION
Marketing Mix
UNDIFFERENTIATED MARKET
UndifferentiatedMarket
DIFFERENTIATED MARKET
Segment 1Segment 2Segment 3Segment4
Company
Customers
Company
Company
Customers
Customers
Marketing Mix
Segment 1Segment 2Segment 3Segment4Segment 5
Mktg. Mix 1Mktg. Mix 2Mktg. Mix 3Mktg. Mix 4Mktg. Mix 5
CONCENTRATED MARKET
Undifferentiated Targeting Strategy :
Marketing strategy to produce only one product and market it to all customers using a single marketing mix.
Concentrated Targeting Strategy :
A targeting strategy used to select one segment of a market for targeting marketing efforts.
Differentiated Marketing :
A strategy that chooses two or more well-defined market segment & develops a distinct marketing mix for each.
STRATEGIES FOR REACHING TARGET MARKETSSTRATEGIES FOR REACHING TARGET MARKETS
Targeting Strategy
Advantages Disadvantages
Undifferentiated Targeting
Potential savings on prod./ Mktg. Costs
• Unimaginative• product offering
ConcentratedTargeting
Concentration of resourcesCan better meet needs of a narrowly defined segmentAllows small firms to compete with larger firms Strong positioning
Segment to small or changing
DifferentiatedTargeting
Greater sales revenues
Better meet needs of various segments (vs. Undifferentiated targeting.
. High Costs
. Cannibalization
Patterns of Target Market Selection
Patterns of Target Market Selection
Patterns of Target Market Selection
Segment-by-Segment Invasion Plan
8-35
Segmenting for Business Markets
DemographicDemographic
Operating VariableOperating Variable
Purchasing ApproachesPurchasing Approaches
Situational FactorsSituational Factors
PersonalCharacteristicsPersonalCharacteristics
8-36
Marketing Debate
Is mass marketing dead?
Take a position:1. Mass marketing is dead.2. Mass marketing is still a viable wayto build a profitable brand.
8-37
Marketing Discussion
How would you classify yourself interms of the various segmentationschemes?
top related