Fom - Lecture 5 - Segmentation(2)

8/8/2019 Fom - Lecture 5 - Segmentation(2)

http://slidepdf.com/reader/full/fom-lecture-5-segmentation2 1/31

Segmentation, Targeting,Segmentation, Targeting,and Positioningand Positioning

Chapter 8Chapter 8



8- 1

Obj ectives Be able to define the three steps of targetBe able to define the three steps of targetmarketing: market segmentation, targetmarketing: market segmentation, target

marketing, and market positioning.marketing, and market positioning.Understand the major bases for segmentingUnderstand the major bases for segmentingconsumer and business markets.consumer and business markets.Know how companies identify attractive marketKnow how companies identify attractive market

segments and how they choose a targetsegments and how they choose a targetmarketing strategy.marketing strategy.Comprehend how companies position their Comprehend how companies position their products for maximum competitive advantage.products for maximum competitive advantage.



8- 3

D efiniti onMarket Segmentation:Market Segmentation:

The process of dividing a marketThe process of dividing a marketinto distinct groups with distinctinto distinct groups with distinctneeds, characteristics,needs, characteristics,or behavior whoor behavior whomight requiremight requireseparate productsseparate productsor marketingor marketingmixes.mixes.



8- 4

St eps i n Ma rk e t S egme n tati on, T a rg e ti ng,

a nd Pos iti on ing



8- 5

Ma

rk et S

e gm e ntati

on

Segme ntin g Segme ntin g Co nsu mer Co nsu mer Marke tsMarke ts

G eographicalG eographicalsegmentationsegmentation

dividing markets bydividing markets byregion of the countryregion of the countryor world, market size,or world, market size,market density or market density or climate.climate.

Key TopicsKey Topics



8- 6

Ma rk e t S e gm e n tati onGe ogr a ph icGe ogr a ph ic

S e gm e n tati on Va r ia bl e sS e gm e n tati on Va r ia bl e sCity or City or Metro SizeMetro Size

NeighborhoodNeighborhoodDensityDensityClimateClimate

World RegionWorld Regionor Countryor Country

U.S. RegionU.S. RegionStateStateCityCity



8- 7

G eographical climate isG eographical climate isa legitimate means of a legitimate means of segmentation for manysegmentation for manyproducts or services.products or services.

N ame s everal example s of N ame s everal example s of prod ucts for which n eed prod ucts for which n eed (a n d dema n d) w o u ld vary (a n d dema n d) w o u ld vary o n a geograp hic al ba sis. o n a geograp hic al ba sis.

Di s cu ss ion Que s ti on



8- 8

Ma

rk et S

e gm e ntati

on


DemographicDemographicsegmentationsegmentation

Most popular typeMost popular typeDividing a market basedDividing a market basedon demographic variableson demographic variablessuch as; age, gender,such as; age, gender,income, income,income, income,occupation, householdoccupation, householdsize and stage in familysize and stage in familylife cyclelife cycleDemographics are closelyDemographics are closelyrelated to needs, wantsrelated to needs, wantsand usage ratesand usage rates




8- 9

Ma rk e t S e gm e n tati onD e mogr a ph icD e mogr a ph ic

S e gm e n tati on Va r ia bl e sS e gm e n tati on Va r ia bl e sAgeAgeG ender G ender

Family sizeFamily sizeFamily life cycleFamily life cycleIncomeIncomeRaceRace

OccupationOccupationEducationEducation

ReligionReligionG enerationG enerationNationalityNationality



8- 10

W h a t t ype of demograp hic s egme nt a ti o n is refle ct ed by this ad?



8- 11

Ma

rk et S

e gm e ntati

on


P sychographicP sychographicsegmentationsegmentation

Dividing into groupsDividing into groupsthat have similar that have similar lifestyle, sociallifestyle, socialclass, or personalityclass, or personalitycharacteristicscharacteristicsDevelopDeveloppsychologicalpsychologicalprofiles based onprofiles based onAIO and VALSAIO and VALS




8- 12

S w a tch t arge ts th o s e with a n a cti ve l i fe st yle



8- 13

Ma

rk et S

e gm e ntati

on


BehavioralBehavioralsegmentationsegmentation

Dividing marketsDividing marketsbased onbased onconsumersconsumersknowledge, attitude,knowledge, attitude,use or response touse or response toa producta product




8- 14

Ma rk e t S e gm e n tati onBeh a v ior a l Beh a v ior a l

Se gm e n

tation V

ar

iabl e s

Se gm e n

tation V

ar

iabl e s

OccasionsOccasionsBenefitsBenefitsUser StatusUser StatusUser RatesUser Rates

Loyalty StatusLoyalty StatusReadiness StageReadiness StageAttitude TowardAttitude Towardthe P roductthe P roduct



8- 15

O cc a si o n s egme nt a ti o n: Al t o i d s¶ ³Love

T in´ is a ³ cu r i o us ly st ro n g vale ntin e ´



8- 16

C h e c ko ut Di re ct offer s re t a i ler s &ma nu fa ctu rer s a n ex c elle nt me th od of rea chin g s egme nts of h eavy us er s, a s w ell a s us er s of th e d i re ct c ompe titi o n.



8- 17

Ma

rk et S

e gm e ntati

on


Using multipleUsing multiplesegmentationsegmentation

variablesvariablesEg.Eg.G eodemographicsG eodemographicsLeading lifestyleLeading lifestyle

segmentationsegmentationsystem is P rizmsystem is P rizm




8- 18

Ma

rk et S

e gm e ntati

on

Segme ntin g Segme ntin g Busin e ss Busin e ss Marke tsMarke ts

Demographic segmentationDemographic segmentationIndustry, company size,Industry, company size,locationlocation

Operating variablesOperating variablesTechnology, usage status,Technology, usage status,customer capabilitiescustomer capabilities

P urchasing approachesP urchasing approachesSituational factorsSituational factors

Urgency, specificUrgency, specificapplication, size of order application, size of order

P ersonal characteristicsP ersonal characteristicsBuyer Buyer- -seller similarity,seller similarity,attitudes toward risk, loyaltyattitudes toward risk, loyalty




8- 19

Ma

rk et S

e gm e ntati

on

Segme ntin g Segme ntin g I nt er n a ti o n al I nt er n a ti o n al Marke tsMarke ts

G eographic segmentationG eographic segmentationLocation or regionLocation or region

Economic factorsEconomic factorsP opulation income or level of P opulation income or level of economic developmenteconomic development

P olitical and legal factorsP olitical and legal factorsType / stability of Type / stability of government, monetarygovernment, monetary

regulations, amount of regulations, amount of bureaucracy, etc.bureaucracy, etc.

Cultural factorsCultural factorsLanguage, religion, values,Language, religion, values,attitudes, customs,attitudes, customs,behavioral patternsbehavioral patterns




8- 20

Ma

rk et S

e gm e ntati

on

R eq ui reme nts for R eq ui reme nts for Effe cti veEffe cti veSegme nt a ti o nSegme nt a ti o n

MeasurableMeasurableSize, purchasing power, andSize, purchasing power, andprofile of segmentprofile of segment

AccessibleAccessibleCan be reached and servedCan be reached and served

SubstantialSubstantialLarge and profitable enoughLarge and profitable enoughto serveto serve

DifferentiableDifferentiableRespond differentlyRespond differently

ActionableActionableEffective programs can beEffective programs can bedevelopeddeveloped




8- 21

T a rg e t Ma rk e ti ng

Evaluating Market SegmentsEvaluating Market SegmentsSegment size and growthSegment size and growthSegment structural attractivenessSegment structural attractiveness

Level of competitionLevel of competition

Substitute productsSubstitute productsP ower of buyersP ower of buyersP owerful suppliersP owerful suppliers

Company objectives and resourcesCompany objectives and resources



8- 22

T a rg e t Ma rk e ti ng St r at e g ie s



8- 23

Pos iti on ingP ositioning:P ositioning:

The place the productThe place the productoccupies inoccupies inconsumers¶ mindsconsumers¶ mindsrelative to competingrelative to competingproducts.products.Typically defined byTypically defined byconsumers on theconsumers on thebasis of importantbasis of importantattributes.attributes.



8- 24

Pos iti on ingChoosing a P ositioning Strategy:Choosing a P ositioning Strategy:

Identifying possible competitiveIdentifying possible competitiveadvantagesadvantages -- -- many potentialmany potentialsources of differentiation exist:sources of differentiation exist:

P roductsP roducts

ServicesServicesChannelsChannelsP eopleP eopleImageImage



8- 25

P or sch e is

po siti o n ed o n th e ba sis of

performa nc ea n d freedom .



8- 26


Choosing the right competitiveChoosing the right competitiveadvantageadvantage

How many differences to promote?How many differences to promote?Unique selling propositionUnique selling propositionP ositioning errors to avoidP ositioning errors to avoid

Which differences to promote?Which differences to promote?



8- 27

Pos iti on ingCr it e r ia for Me a n ing fu l Di ffe re n ce sCr it e r ia for Me a n ing fu l Di ffe re n ce s

ImportantImportant

Superior Superior P reemptiveP reemptive

DistinctiveDistinctive

CommunicableCommunicable

AffordableAffordable

P rofitableP rofitable



8- 28


Developing a positioning statementDeveloping a positioning statementP ositioning statements summarize theP ositioning statements summarize thecompany or brand positioningcompany or brand positioningEXAM P LE: ToEXAM P LE: To ( t arge t s egme nt a n d ( t arge t s egme nt a n d n eed)n eed) our our (bra n d)(bra n d) isis ( c o nc ep t )( c o nc ep t ) thatthat(po int (po int- - of of - - d i ffere nc e)d i ffere nc e) ..

Communicating the chosen positionCommunicating the chosen position



8- 29


Communicating and delivering theCommunicating and delivering thechosen positionchosen position

Entire marketing mix must support theEntire marketing mix must support thechosen strategychosen strategy

May require changes to the product,May require changes to the product,pricing, distribution or promotion.pricing, distribution or promotion.



8- 30

WHAT S NEXT?

LECTURE: P RODUCT/SERVICELECTURE: P RODUCT/SERVICE20% TEST20% TEST ± ± WEDNESDAY JULY 6,WEDNESDAY JULY 6,20052005

ANSWER CASE QUESTIONS ANSWER CASE QUESTIONSGIVENGIVEN

TUTORIAL MONDAY JULY 3, 2005TUTORIAL MONDAY JULY 3, 2005

Fom - Lecture 5 - Segmentation(2)

Documents

Transcript of Fom - Lecture 5 - Segmentation(2)