Segment at Ions - Slides

8/8/2019 Segment at Ions - Slides

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Segment at ion, Target ing,Segment at ion, Target ing,

and Posit ioningand Posit ioning


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Sells multipleSells multiplebrands within thebrands within the

same productsame productcategory for acategory for avariety of productsvariety of products

Brands feature aBrands feature adifferent mix ofdifferent mix of

benefits andbenefits andappeal to differentappeal to differentsegmentssegments

Has also identifiedHas also identified

different nichesdifferent niches

withinwithincertaincertainsegmentssegments

Tide offers sevenTide offers seven

different productdifferent product

formulations toformulations toserve differentserve different

nichesniches needsneeds

c

Procter & GambleProcter & Gamble


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Definition

Market Segmentation:Market Segmentation:??Dividing a market into distinctDividing a market into distinct

groups with distinct needs,groups with distinct needs,characteristics,characteristics,or behavior whoor behavior whomight requiremight requireseparate productsseparate products

or marketingor marketingmixes.mixes.


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Table 8.1: Maj or Segment at ionVariables for Consumer Markets

Under 6, 6Under 6, 6--11, 1211, 12--19, 2019, 20--34, 3534, 35--49, 5049, 50--64, 65+64, 65+AgeAge

11--2, 32, 3--4, 5+4, 5+Family sizeFamily size

Northern southernNorthern southernClimateClimate

DemographicDemographic

Urban, suburban, ruralUrban, suburban, ruralDensityDensity

Under 5,000; 5,000Under 5,000; 5,000--20,000; 20,00020,000; 20,000--50,000; 50,00050,000; 50,000--

100,000; 100,000100,000; 100,000--250,000; 250,000250,000; 250,000--500,000; 500,000500,000; 500,000--

1,000,000; 1,000,0001,000,000; 1,000,000--4,000,000; 4,000,000 or over4,000,000; 4,000,000 or over

City or metro sizeCity or metro size

Pacific, Mountain, West North Central, West South Central,Pacific, Mountain, West North Central, West South Central,

East North Central, East South Central, South Atlantic,East North Central, East South Central, South Atlantic,

Middle Atlantic, New EnglandMiddle Atlantic, New England

RegionRegionGeographicGeographic

See text for complete table & for definitions


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Figure 8-1:

Steps in MarketSegment at ion, Target ing,

and Posit ioning

Real estate business


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Figure 8-2:

Target Market ingStrategies


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Definition

Mass Marketing:Mass Marketing:

Using almost the sameproduct, promotion anddistribution for all

consumers


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Definition

Segment Marketing:Segment Marketing:

Adapting a companysofferings so they moreclosely match the needs

of one or more segments


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Definition

Niche Marketing:Niche Marketing:

Adapting a companysofferings to more closelymatch the needs of one ormore subsegments where

there is often littlecompetition


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Pat t erns of market

segments

QuantitativeQuantitative researchresearch

SmarterKids


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Target Market ingTarget marketing requires marketersTarget marketing requires marketersto take three major steps:to take three major steps:??Identify and profile distinct groups ofIdentify and profile distinct groups of

buyers who differ in their needs andbuyers who differ in their needs and

preferences (market segmentation).preferences (market segmentation).??Select one or more market segments toSelect one or more market segments to

enter (market targeting).enter (market targeting).

??For each target segment, establish andFor each target segment, establish and

communicate the key distinctivecommunicate the key distinctivebenefit(s) of the companybenefit(s) of the companys markets marketoffering (market positioning).offering (market positioning).


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Market Segment at ion

SegmentingSegmenting

Consumer MarketsConsumer MarketsSegmentingSegmentingBusiness MarketsBusiness Markets

SegmentingSegmentingInternationalInternational

MarketsMarketsRequirements forRequirements forEffectiveEffectiveSegmentationSegmentation

Geographical segmentsGeographical segments

DemographicDemographicsegmentationsegmentation??Most popular typeMost popular type

?? Demographics are closelyDemographics are closelyrelated to needs, wantsrelated to needs, wantsand usage ratesand usage rates

PsychographicPsychographicsegmentationsegmentation

BehavioralBehavioralsegmentationsegmentation

Using multipleUsing multiplesegmentation variablessegmentation variables

Key TopicsKey Topics


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Market Segment at ionDemographicDemographic

Segmentat ion VariablesSegmentat ion Variables

AgeAge

GenderGender

Family sizeFamily size

Family life cycleFamily life cycleIncomeIncome

RaceRace

OccupationOccupation

EducationEducation

ReligionReligion

GenerationGenerationNationalityNationality


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Market Segment at ion

SegmentingSegmenting

Consumer MarketsConsumer MarketsSegmentingSegmentingBusiness MarketsBusiness Markets

SegmentingSegmentingInternationalInternational

MarketsMarketsRequirements forRequirements forEffectiveEffectiveSegmentationSegmentation

MeasurableMeasurable

?? Size, purchasing power, andSize, purchasing power, andprofile of segmentprofile of segment

AccessibleAccessible

?? Can be reached and servedCan be reached and served

SubstantialSubstantial

?? Large and profitable enoughLarge and profitable enough

to serveto serve

DifferentiableDifferentiable

?? Respond differentlyRespond differently

ActionableActionable

?? Effective programs can beEffective programs can be

developeddeveloped

Key TopicsKey Topics


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Target Market ing

Choosing a TargetChoosing a Target--

Marketing StrategyMarketing Strategy

Requires Consideration of:Requires Consideration of:??Company resourcesCompany resources

??The degree of product variabilityThe degree of product variability

??ProductProducts lifes life--cycle stagecycle stage

??

Market variabilityMarket variability??CompetitorsCompetitors marketingmarketing

strategiesstrategies


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Target Market ing

Evaluating Market SegmentsEvaluating Market Segments??Segment size and growthSegment size and growth

??Segment structural attractivenessSegment structural attractiveness

?? Level of competitionLevel of competition

?? Substitute productsSubstitute products

?? Power of buyersPower of buyers

?? Powerful suppliersPowerful suppliers

??Company objectives and resourcesCompany objectives and resources


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Positioning

Positioning:Positioning:

??The place the productThe place the product

occupies inoccupies inconsumersconsumers mindsminds

relative to competingrelative to competing

products.products.

??Typically defined byTypically defined by

consumers on theconsumers on thebasis of importantbasis of important

attributes.attributes.


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Positioning

Choosing a Positioning Strategy:Choosing a Positioning Strategy:??Identifying possible competitiveIdentifying possible competitive

advantagesadvantages ---- many potentialmany potentialsources of differentiation exist:sources of differentiation exist:

?? ProductsProducts

?? ServicesServices

?? ChannelsChannels

?? PeoplePeople

?? ImageImage


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Porsche is

positioned on

the basis ofperformance

and freedom.


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Positioning

Choosing a Positioning Strategy:Choosing a Positioning Strategy:

??Choosing the right competitiveChoosing the right competitive

advantageadvantage

?? How many differences to promote?How many differences to promote?

Unique selling propositionUnique selling proposition

Positioning errors to avoidPositioning errors to avoid

?? Which differences to promote?Which differences to promote?


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PositioningCrit er ia for Meaningful Dif ferencesCrit er ia for Meaningful Dif ferences

ImportantImportant

SuperiorSuperior

PreemptivePreemptive

DistinctiveDistinctive

CommunicableCommunicable

AffordableAffordable

ProfitableProfitable


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Figure 8-3:

Possible Value Proposit ions


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Positioning

Choosing a Positioning Strategy:Choosing a Positioning Strategy:

??Communicating and delivering theCommunicating and delivering the

chosen positionchosen position?? Entire marketing mix must support theEntire marketing mix must support the

chosen strategychosen strategy

?? May require changes to the product,May require changes to the product,

pricing, distribution or promotion.pricing, distribution or promotion.


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Marriot

Pioneer in segmenting ...Pioneer in segmenting ...

Segment at Ions - Slides

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