Chapter 8-10 - amoroso, wong, co, esteban, lim, oracion

www. facebook.com/v65ASMPHMarkma

Identifying Market Segments and Targets

Chapter 8…

Amoroso , AremWong, Audren


• Target Marketing• Market Segment• Consumer characteristics and responses

– Geographic Segmentation• Grassroots marketing

– Demographic Segmentation– Multicultural marketing– Psychographic Segmentation– Behavioral Segmentation

• Combining data for richer consumer description• Not all segmenting schemes are useful• Steps in the Segmentation Process• Selecting Market Segments

OUTLINE


Concept 1: Target marketing

• Why Segment the Market? • Companies cannot connect with all customers in large,

broad, or diverse markets• “To compete more effectively…[companies] are now

focusing on those consumers they have the greatest chance of satisfying.”

Examples:Kotler: Club Med – catering to young couples, adventure seekersLocal: Cebu Pac – catering to “budget” commutersRP medical application: Different specializations – catering to

specialized needs


• Segmentation: – Identify and profile market segments– Select market segment(s) to enter– Establish and communicate distinctive benefit(s) of

the company’s market offering

• Market segments– Large, identifiable groups within a market– Group of customers who share a similar set of

needs and wants

Definition of Terms


Concept 2: Bases for Segmenting Consumer Markets

• Consumer Characteristics

• Consumer Responses

• Geographic• Demographic• Psychographic

• Behavioral Response– Benefits– Usage – Brands


Consumer Characteristics


Concept 3: Geographic Segmentation

• Divide into geographical units– Kotler/Local: Nation, States, Regions, Countries, Cities,

Neighborhoods– Medical Application: Medical Diagnostics Hubs in densely

populated areas


• Getting as close and personally relevant to individual customers as possible– Kotler: Nike (sponsorship of local school teams, expert-conducted

clinics, provision of shoes, clothing, equipment); Citibank and neighborhood demographics, Curves

– Local: GK – customized approached to different beneficiaries

– Medicine: Gov’t Medical Missions

Concept 4: Geographic Segmentation (Grassroots marketing)


– Kotler: Crest and Colgate to age and life cycle stage (kids, adults, older consumers), Pampers

– Local: Dove deodorants for men/women, Bench - Herbench

– Medical: Belo, Hospitals (Paying and Charity Wards)

Concept 5: Demographic Segmentation


• recognizing that different ethnic and cultural segments have different needs and wants that require targeted marketing activities

• Can result in different marketing messages, media, channels, etc.– Kotler: McDonalds “I’m Loving It” rooted in hip-hop culture;

– RP: LGBT

– Medical: Topic conferences in TMC, “Patient Partner”

Concept 6: Multicultural Segmentation


• Psychographics– Using psychology and demographics to better understand

consumers– Grouped on the basis of psychological/personality traits,

lifestyle, or values

Kotler: Canadian Airports - ActualizersLocal: BDO – “We find ways” targeting young professionals who are

“Achievers”RP medical application:

Minimal Invasive Surgeries – for successful people “Achievers” and “Innovators”, Who is willing to avail of latest medical treatments made available in the Philippines (e.g. Stem cell) for Innovators

Concept 7: Psychographic Segmentation


Consumer Responses


• Based on knowledge of, attitude toward, use of, or response to a product.– Needs and benefits

– Decision Roles

– User and Usage

– Buyer-Readiness Stage

– Loyalty Status

Kotler: ICI – Selling paints to wife Local: Safeguard – targeting mothersRP medical application: Doctors – Identifying Gatekeepers (Moms)

to improve patient compliance

Concept 8: Behavioral Segmentation


Combination of Data


• Kotler: PRIZM (Potential Rating Index by Zip Markets)• Medical: Diagnostic Packages, Medicines for senior

citizens

• Demographic variables are the most important, followed by the operating variables – down to the personal characteristics of the buyer

Concept 9: You can combine data to yield even richer descriptions of consumers


• Needs-Based Segmentation• Segment Identification• Segment Attractiveness• Segment Profitability• Segment Positioning• Segment “Acid Test”• Marketing-Mix Strategy

Concept 10: Steps in the Segmentation Process


Market Targeting


• Undifferentiated/ Mass marketing– Goes after the whole market with one offer– Appropriate when all consumers have roughly same preferences

• Kotler: Model T-Ford has only one color, black• Local: Magic Sarap for Filipino households• Medical: Multivitamin commercials

– High potential, lower cost, lower prices, higher margins

• Differentiated marketing– Groups of consumers with different wants/needs– Fine-tune marketing program/activities

• Kotler/Local: Estée Lauder, Clinique• Medical: Met, skin-whitening products

Concept 11: Selecting market Segments (Targeting)


• Multiple Segment Specialization– Selective Specialization

– Selects a subset of all the possible segments, each objectively attractive an appropriate

– Little or no synergy• Kotler: Crest Whitestrips

• Product specialization– Selling a product to several different market segments

• Kotler: Microscopes sold to university, government, and commercial laboratories

• Medical: Braun products in medical schools and hospitals (e.g. IV needles)



• Market specialization– Serving many needs of a particular customer group

• Kotler:

• Local/Medical: Braun medical skills training in medical schools

• Single Segment Specialization– Marketing to only one segment

– Niche - narrowly defined customer group seeking a distinctive mix of benefits within a segment (subsegments)

• Kotler: Porche on sports car market, Volkswagen on small-car market

• Local: Luxury Cars (Ferrari, Maserati)

• Medical: Molecular Medicine



• Individual Marketing– Ultimate level of segmentation leads to “segments of one,”

“customized marketing,” or “one-to-one marketing”

– Kotler: use of internet: eBay, iTunes, Amazon,

– Local: OLX, Project Pie

– Medical: TMC: Personalized Medicine



• Target marketing includes three activities: market segmentation, market targeting, and market positioning

• Market segments are large, identifiable groups within a market.• Two bases for segmenting consumer markets are consumer

characteristics and consumer responses.• The major segmentation variables for consumer markets are

geographic, demographic, psychographic, and behavioral. Marketers use them singly or in combination

• To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable

• We can target markets at four main levels: mass, multiple segments, single (or niche) segment, and individuals.

• A niche is a more narrowly defined group. Globalization and the Internet have made niche marketing more feasible to many.

SUMMARY


Chapter 9: Creating Brand Equity

CO & ESTEBAN2017, ASMPH


Outline

• What is a brand?• Role of brands• Scope of Branding• Brand Equity• Brand Asset Valuator• Brand Resonance Model• Brand Elements


Outline

• Brand Elements Choice Criteria: Brand Building• Brand Elements Choice Criteria: Defending• Brand Contact• Internal Branding• Leveraging Secondary Information• Managing Brand Equity: Brand Reinforcement• Brand Extensions• Brand Portfolios


Concept 1

What is a brand?

Is a NAME, TERM, SIGN, SYMBOL, DESIGN, or some combination of these elements,

INTENDED TO IDENTIFY THE GOODS AND SERVICES of one seller or group of

sellers and to DIFFERENTIATE them from those of competitors


Concept 1

What is a brand?

Kotler: ESPN

Local: Jollibee

RP medical application:Belo Medical Group


Concept 2

The Role of Brands

1. IDENTIFY THE SOURCE OR MAKER OF A PRODUCT and allow customers to ASSIGN

RESPONSIBILITY OF ITS PERFORMANCE to a manufacturer or distributor

2. Offers LEGAL PROTECTION for UNIQUE FEATURES OR ASPECTS of the product

3. A credible brand signals a LEVEL OF QUALITY so that satisfied clients CAN EASILY

BUY the product again


Concept 2

The Role of Brands

Kotler: New Coke vs. Classic Coke

Local: Lucky Me! Pancit Canton

RP medical application:The Medical City


Concept 3

Scope of Branding

Branding is endowing products and services with the POWER OF A BRAND.

CREATION OF MENTAL STRUCTURES, CLARIFIES THE CUSTOMER’S DECISION

MAKING and, in the process, PROVIDES VALUE TO THE FIRM.


Concept 3

Scope of Branding

Kotler: Shaun White

Local: Joy Dishwashing Liquid

RP medical application:Manny Pacquiao


Concept 4Brand Equity

• added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.


Concept 5Brand Asset Valuator


?


CPGs

Clinical Trials

Old Guidelines

Theories


Concept 6Brand Resonance Model


Concept 7

Brand Elements

Brand elements are devices, which CAN BE TRADEMARKED, that IDENTIFY AND

DIFFERENTIATE the brand.


Concept 7

Brand Elements

Kotler: Nike “Just Do It”

Local: Datuputi “Mukhasim”

RP medical application:South Star Drug “Mapagkakatiwalaang Tunay”


Concept 8

Brand Elements Choice Criteria: Brand Building

1.MEMORABLE – do consumers recall and recognize brand element?

2.MEANINGFUL – is the brand element credible?

3.LIKABLE – how aesthetically appealing is the brand element?


Concept 8

Brand Elements Choice Criteria: Brand Building

Kotler: Meaningful – Mop & Glo floor wax

Local: Meaningful – Mr. Clean Detergent bar

RP medical application: Meaningful – Lesofat– anti-obesity pills


Concept 9

Brand Elements Choice Criteria: Defensive

1.TRANSFERABLE – can the brand element introduce new products in the same or different categories?

2.ADAPTABLE 3.PROTECTABLE –Names that are

synonymous with product categories should retain their trademark rights and

not become generic


Concept 9

Brand Elements Choice Criteria: Defensive

Kotler: Protectable - Kleenex

Local: Protectable - Pampers

RP medical application: Protectable - Robitussin


Concept 10Brand Contact

• Any information-bearing experience, whether positive or negative, a customer or prospect has with the brand, its product category, or its market.


Concept 11

Internal Branding

Marketers must now “walk the walk” to deliver the brand promise.

Internal branding consists of activities and processes that help INFORM AND INSPIRE EMPLOYEES about brands.


Concept 11

Internal Branding

Kotler: Disney – seminars on “Disney Style”

Local: Lamoyan Corporation

RP medical application: Pharma Companies


Concept 12Leveraging Secondary Information

• Create brand memory by linking the brand to other information in memory that conveys meaning to consumers


Concept 13

Managing Brand Equity: Brand Reinforcement

A brand needs to be carefully managed so its VALUE DOES NOT DEPRECIATE.

Conveying the brand’s meaning in terms of

(1) products it represents, what core benefits it supplies, and what needs it

satisfies (2) how the brand makes products superior should exist in consumers’ minds.


Concept 13 Managing Brand Equity: Brand Reinforcement

Kotler: Nivea – product extensions “mild”, “gentle” and “caring”

Local: Yakult – everyday okay

RP medical application: Robitussin – Hagod Robitussin


Introducing a host of NEW PRODUCTS under their STRONGEST BRAND NAMES.

Concept 14

Brand Extensions


Concept 14

Brand Extensions

Kotler: Crayola – twistable crayons, biggie crayons

Local: Lucky Me – Calamansi, Spicy, Sweet and Spicy

RP medical application: Buscopan - Venus


Concept 15Brand Portfolios

Flankers

Low-end

Entry-level

High-end

Prestige

Cash Cows


• Schools and Scholarships?• Value meals?• Stores in SM?


Thank You!


CRAFTING THE BRAND POSITIONING

Turning every product into the best product ever!

Lim, Josephine AlexandraOracion, Vince

Chapter 10


Outline:

• Positioning• Category Membership• Industry• Red VS Blue Ocean Thinking• Points of Differences• Points of Parity• Brand Mantra• Competitive Advantage• Emotional Branding• Cultural Branding • Brand Journalism


Concept 1

No company can win if its products and services resemble every other (p.277)

• Kotler– Method products: original idea. Bottle built to let

soap flow out the bottom, so users would never have to turn it upside down

• Local– Mang Inasal: Unlimited rice

• Medical– ASMPH, The Medical City: “Patient Partner”


Concept 2

Positioning (p.276)

Kotler: Entertainment Weekly, Method Products

Local: Zalora

RP medical application: Belo


Def’n: defines which other brands competes it with•Kotler

– AT&T, Verizon, Sprint

•Local– Globe, Smart, Sun

•Medical– The Medical City, St Lukes Global, Makati Medical

Center

Concept 3: The competitive frame of reference


Concept 4

Category Membership (p.277)

Kotler: Pepsi, Cocola

Local: Globe, Smart

RP medical application:Mercury Drug Store, South Star Drug


Concept 5

Industry (p.278)

Kotler:

Local: Coffee Industry, Fast Food Industry

RP medical application:Pharmaceutical Industry


• Which of the factors that our industry takes for granted should we eliminate?

• Which factors should we reduce well below the industry’s standard?

• Which factors should we raise well above the industry’s standard?

• Which factors should we create that the industry has never offered?

Concept 6: 4 Questions for Blue-ocean thinking


Concept 6

Red Ocean vs Blue Ocean Thinking (p.278)

Kotler: Callaway Golf’s “Big Berta”

Local: Smart VS Globe, Uber, C2

RP medical application: Berocca VS Centrum


Concept 7

Points of Differences (p.280)

Def’n: attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find tothe same extent with a competitive brand.

Must be:- Desirable to consumer- Deliverable by company- Differentiating from competitors


Concept 7

Points of Differences (p.280)

Kotler: Apple, Nike, Southwest Airlines, VISA vs American Express

Local: Safeguard, SM

RP medical application: ASMPH, TMC


Concept 8

Points of Parity (p.280)

Def’n: attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands.

2 types:- Category POPs = must have’s - Competitive POPs = overcome

weakness


Concept 8

Points of Parity (p.280)

Kotler: Miller Lite Beer, VISA vs American Express

Local: San Miguel Light, Coke Zero, Pepsi Max

RP medical application: Generic Drugs, Diagnostic Packages


Def’n: It is not uncommon for a brand to identify more than one actual or potential competitive frame of reference•Kotler

– Starbucks vs McDonalds (quick serve); vs supermarket brands (coffee); vs local coffee shops

•Local– Can be the same (Starbucks in the Philippines)

•Medical– Hospitals vs diagnostic clinics; vs wellness clinics; vs

other hospitals

Concept 9: Multiple frames of reference:


Concept 10

Brand Mantra (p.284)

Def’n: articulation of the heart and soul of the brand and is closely related to other branding concepts like “brand essence” and “core brand promise.


Concept 10

Brand Mantra (p.284)

Kotler: Nike, Disney

Local: SM

RP medical application: The Medical City


Concept 11

Competitive Advantage (p.289)

Kotler: Progressive, YouTube

Local: Smart, National Bookstore

RP medical application: ASMPH


• Employee differentiation– GE, Pfizer, Cisco: better trained employees

• Channel differentiation– Dayton (pet food): besides supermarket, sell also

through vegetarians, breeders, and pet stores

• Image differentiation– Marlboro: macho cowboy

• Service differentiation– Jollibee: fast and cheap

Concept 12: Means of Differentiation


Concept 13

Emotional Branding (p.290)

Kotler: Crayola, Kellogg’s, Mederma

Local: Mcdo, Dove

RP medical application: Vick’s, TMC


Concept 14

Cultural Branding (p.292)

Kotler: ESPN Zone Restaurants

Local: PLDT, LBC, Coke Sakto

RP medical application: HPV Vaccine


Concept 15

Brand Journalism (p.292)

Kotler: Mcdo

Local: Globe, Red Bull

RP medical application: TMC


• Concept 1: Be different• Concept 2: That special something• Concept 3: Know your playing field• Concept 4: Who can substitute me?• Concept 5: Industry• Concept 6: Enemy VS Frienemy• Concept 7: What makes us unique• Concept 8: What makes us similar• Concept 9: What else are we known for

SUMMARY


• Concept 10: Credo• Concept 11: What makes you stand out? • Concept 12: How do you stand out?• Concept 13: Tap the feelings!• Concept 14: Tap into society!• Concept 15: Packaging oneself

SUMMARY


Summary:

• Study yourself and your competitor!• Determine the your playing field – similarities &

differences!• Keep eyes open for all competitors – those close by and

those latent!• Differentiate the brand!• Tap all things possible: emotion, culture!• Create a buzz!!


CRAFTING THE BRAND POSITIONING

Turning every product into the best product ever!

Lim, Josephine AlexandraOracion, Vince

Chapter 10

Chapter 8-10 - amoroso, wong, co, esteban, lim, oracion

Education

Transcript of Chapter 8-10 - amoroso, wong, co, esteban, lim, oracion