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Part Three:Market Segmentation

Targeting & Psitioning

Part Three:Market Segmentation

Targeting & Psitioning( Chapter8)( Chapter8)

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Market segmentation

1. Identify bases for segmenting the market .

2. Develop profiles ofresulting segments .

Market segmentation

1. Identify bases for segmenting the market .

2. Develop profiles ofresulting segments .

Market targeting

3.Develop measures of segment attractiveness.

4.Select the target segment(s).

Market targeting

3.Develop measures of segment attractiveness.

4.Select the target segment(s).

Market positioning

5. Develop positioningfor each target segment.

6.Develop marketing mix for each targetsegment.

Market positioning

5. Develop positioningfor each target segment.

6.Develop marketing mix for each targetsegment.

STP Strategies (P.239)

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Major Segmentation Variables for Consumer Markets (P.240)

•

Geographic

RegionCountry size

City size DensityClimate

Geographic

RegionCountry size

City size DensityClimate

Demographic

Age GenderLife cycle

Family size Income

OccupationEducation

…….

Demographic

Age GenderLife cycle

Family size Income

OccupationEducation

…….

Psychographic

Social classLifestyle

Personality

Psychographic

Social classLifestyle

Personality

Behavioral

Purchase occasionBenefits sought

User statusUsage rate

Loyalty status

Behavioral

Purchase occasionBenefits sought

User statusUsage rate

Loyalty status

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Major Segmentation Variables for Business Markets (P.249)

• DemographicIndustryCompany sizeLocation

DemographicIndustryCompany sizeLocation

Operating variablesTechnologyUser/nonuser statusCustomer capabilities

Operating variablesTechnologyUser/nonuser statusCustomer capabilities

Purchasing approachesPurchasing function organization.Power structure.Nature of existing relationships.General purchase policies.Purchasing criteria.

Purchasing approachesPurchasing function organization.Power structure.Nature of existing relationships.General purchase policies.Purchasing criteria.

Situational factorsUrgencySpecific applicationSize of order.

Situational factorsUrgencySpecific applicationSize of order.

Personal characteristicsBuyer-seller similarityAttitudes toward riskLoyalty.

Personal characteristicsBuyer-seller similarityAttitudes toward riskLoyalty.

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• The characteristics of market segments:(P.250)

• Measurable; ( 可测定性 )• Accessible; ( 可进入性 )• Substantial; ( 可获利性 )• Differentiable; ( 可区分性） • Actionable. ( 可操作性 )

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Target Marketing

• Evaluating Market Segments (P.251)

Segment Sizeand Growth

Segment Sizeand Growth

Segment StructuralAttractiveness

Segment StructuralAttractiveness

Company Objectivesand Resources

Company Objectivesand Resources

Target MarketsTarget Markets

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Target market (P.251)

Target market is a set of buyer sharing common needs or characteristics that the company decides to serve.

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Market Segmentation

Levels of market segmentation (P.252)

Massmarketing

Massmarketing

Segmentmarketing

Segmentmarketing

Nichemarketing

Nichemarketing

Micro-marketing

Micro-marketing

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Mass (Undifferentiated) marketing （无差异营销）

A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer .

Segment (Differentiated) marketing （差异营销） A market-coverage strategy in which a firm dec

ides to target several market segments and designs

separate offers for each.

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Selecting Market-coverage strategies

Undifferentiated Marketing

Company marketing

mix

Company marketing

mixMarketMarket

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Selecting Market-coverage strategies

Differentiated Marketing

Company marketing mix1Company marketing mix1

Company marketing mix2Company marketing mix2

Company marketing mix3Company marketing mix3

Segment1Segment1

Segment2Segment2

Segment3Segment3

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Concentrated marketing （集中营销） A market-coverage strategy in which a fi

rm goes after a large share of one or a few market segments.

Niche marketing （缝隙营销） Focusing on sub-segments or niches with

distinctive traits that may seek a special combination of benefits.

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Selecting Market-coverage strategies

• Concentrated marketing

Company marketing

mix

Company marketing

mix

Segment1Segment1

Segment2Segment2

Segment3Segment3

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Micro-marketing (精细营销） The practice of tailoring products and marketin

g programs to suit the the tastes of specific individual and locations.(includes local marketing & individual marketing).

Individual-marketing (定制营销） Tailoring products and marketing programs to

the needs and preferences of individual customers.

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The Factors of Choosing a Market-Coverage Strategy (P.257)

• 1.Company resources; • 2.Product variability;• 3.Product’s stage in the life cycle • 4. Market variability ;• 5. Competitors’ marketing strategy.

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Market Positioning

• Product position (P.259)

The way the product is defined by consumers on important attributes ——the place the product occupies in consumers’ minds relative to competing products 。

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Choosing a positioning strategy (P.270)

Choosing the right

competitiveAdvantage

Choosing the right

competitiveAdvantage

Selecting anOverallPositionStrategy

Selecting anOverallPositionStrategy

Identifyingpossible CompetitiveAdvantage

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Competitive advantages

ProductDifferentiation

ProductDifferentiation

ServicesDifferentiation

ServicesDifferentiation

PersonnelDifferentiation

PersonnelDifferentiation

ImageDifferentiation

ImageDifferentiation

Channel Differentiation

Channel Differentiation

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Choosing the right competitive advantages

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

Which differences to promote?

Important( 重要） Distinctive （特色） Superior( 领先）Communicable( 沟通） Preemptive( 独有）Affordable( 可购） Profitable( 有利）

Which differences to promote?

Important( 重要） Distinctive （特色） Superior( 领先）Communicable( 沟通） Preemptive( 独有）Affordable( 可购） Profitable( 有利）

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　　　　　　　　　　　　　　Selecting a overall positioning

strategy(P.263)

Value proposition:

The full positioning of a brand — the full mix of benefits upon which it is positioned.

　　

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Possible value propositions（ P.263）

More

for

more

More

for the

same

More

for

less

The same

for

less

Less for

much

less

More

More

The same

The same

Less

Less

Price

Benefits

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Positioning statement (P.265)

A statement that summarizes company or brand positioning – it takes this form:

To (target segment and need)

Our (brand)

Is (concept)

That (point-of-difference)

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Communicating & delivering the chosen position(P.267)

CompanyCompany Chosen positionChosen positionTarget

customer

Targetcustomer

Product, Price, Place, Promotion

Communicating

Delivering