Topic Six: Identifying customer values
Mar 12, 2016
Objectives
• Identifying Market Segments• Choosing Target Markets• Positioning for competitive advantages
Steps in Market Segmentation, Targeting,and Positioning
1. Identifysegmentationvariables andsegment themarket
2. Develop profiles ofresultingsegments
MarketMarketSegmentationSegmentation
3. Evaluateattractivenessof eachsegment
4. Select thetargetsegment(s)
MarketMarketTargetingTargeting
Basic Market-Preference Patterns
((a) Homogeneousa) Homogeneouspreferencespreferences
SweetnessSweetness
Cre
amin
ess
Cre
amin
ess
((c) Clusteredc) Clusteredpreferencespreferences
Cre
amin
ess
Cre
amin
ess
SweetnessSweetness
((b) Diffusedb) Diffusedpreferencespreferences
Cre
amin
ess
Cre
amin
ess
SweetnessSweetness
Market-Segmentation Procedure
• Survey– Motivations– Attitudes– Behavior
• Analysis– Factors– Clusters
• Profiling
Bases for Segmenting Consumer Markets
Occasions, Benefits, Uses, or Attitudes
Behavioral
Geographic
Region, City or MetroSize, Density, Climate Demographic
Age, Gender, Family size and Life cycle, Race, Occupation, or Income ...
Lifestyle or PersonalityPsychographic
Bases for Segmenting Business Markets
• Demographic• Operating Variables• Purchasing Approaches• Situational Factors• Personal Characteristics
Measurable
Accessible
Substantial
Differential
• Segments must be large or profitable enough to serve.
• Segments can be effectively reached and served.
Actionable
• Size, purchasing power, profiles of segments can be measured.
• Segments must respond differently to different marketing mix elements & actions.
• Must be able to attract and serve the segments.
Effective Segmentation
Additional Segmentation Criteria
• Ethical Choice of Market Targets• Segment Interrelationships & Supersegments• Segment-by-Segment Invasion Plans• Intersegment Cooperation
Five Patterns of Target Market Selection
Single-segmentSingle-segmentconcentrationconcentration ProductProduct
specializationspecializationM1 M2 M3
P1
P2
P3
SelectiveSelectivespecializationspecializationM1 M2 M3
P1
P2
P3
M1 M2 M3
Full marketFull marketcoveragecoverage
P1
P2
P3
MarketMarketspecializationspecializationM1 M2 M3
P1
P2
P3
P1
P2
P3
M1 M2 M3
P = ProductP = ProductM = MarketM = Market
Segment-by-SegmentInvasion Plan
Customer GroupsCustomer GroupsTruckersTruckersRailroadsRailroadsAirlinesAirlines
LargeLargecomputerscomputers
Prod
uct V
arie
ties
Prod
uct V
arie
ties
PersonalPersonalcomputerscomputers
Mid-sizeMid-sizecomputerscomputers
Company BCompany B Company CCompany CCompany ACompany A
Product Differentiation
Form Fea-tures
Perfor-mance Quality
Conform-ance
Quality
Dura-bility
Relia-bility
Repair-ability Style Design
Delivery
Services Differentiation
OrderingEase
Maintenance& Repair
CustomerTraining
Installation CustomerConsulting
Differences WorthDifferences WorthEstablishingEstablishing
Affordable Superior
Profitable
Preemptive
Distinctive
Important
Positioning is the act of designing the company’s offering and
image to occupy a distinctive place in the the target market’s
mind.
Perceptual Map
0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 -1.6 -1.4 -1.2 -1.0 -0.8 -0.6 -0.4 -0.2
1.0
0.8
0.6
0.4
0.2
-0.2
-0.4
-0.6
-0.8
MagicMagicMountainMountain
JapaneseDeer Park
BuschBuschGardensGardens
Knott’sKnott’sBerryBerryFarmFarm
LionLionCountryCountrySafariSafari
MarinelandMarinelandof theof thePacificPacific
DisneylandDisneyland
EconomicalEconomical
Fun ridesFun ridesExerciseExercise
FantasyFantasyGood foodGood food
Easy to reachEasy to reach
Educational,Educational,animalsanimals
Little waitingLittle waitingLive showsLive shows