Segmentation targeting and positioning
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Transcript of Segmentation targeting and positioning
Segmentation , Targeting and Segmentation , Targeting and PositioningPositioningbyby
Target MarketingTarget marketing requires
marketers to take three major steps:
Identify and profile distinct groups of buyers who differ in their needs and preferences (MARKET SEGMENTATION).
Select one or more market segments to enter (MARKET TARGETING).
For each target segment, establish and communicate the key distinctive benefit(s) of the company’s market offering (MARKET POSITIONING).
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Segmentation
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Bases for Segmenting Consumer MarketsGeographic Segmentation
Many companies today are localizing their products , advertising, promotions and sales efforts to fit the needs of individual regions, cities, and even neighborhood (tapal, pizza hut, KFC)
Demographic Segmentation Most popular bases because
consumer needs, wants and usage rates often vary closely with demographic patterns. They are easier to measure than most other types of variables
SegmentationAge and Life Cycle Stage GenderIncome
Psychographic SegmentationLifestyle
Time-constrainedMoney-constrained
Social Classo Personality Characteristics
(hip and trendy, rebellious, sincere, exciting, competent, sophisticated, rugged)
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SegmentationBehavioral Segmentation
(dividing up market on the basis of knowledge, attitudes, uses or responses to a product. Occasions
Orange juice is often consumed at breakfast
Valentines, Father’s Day, Mother’s Day, Ramzan, Eid
Benefits Sought User Status
Market share leaders focus on attracting potential users, whereas smaller firms focus on attracting current users away from the market leader
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SegmentationUsage Rate Loyalty Status
Multiple SegmentationGeodemographic
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Criteria for Effective Segmentation
Effective SegmentationMeasurableSubstantialAccessibleDifferentiable (responds
differently to different marketing mix elements)
Actionable (Effective programs can be designed for attracting and serving the segments)
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Market TargetingMarket segmentation
reveals the firm’s market segment opportunities.
Now the firm will evaluate the various segments Size and GrowthSegment Structural
AttractivenessObjective and Resources
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Market TargetingSelecting Segments
Undifferentiated MarketingIgnore market segments, one
offer, focus on common need will appeal to largest number of buyers
Differentiated Marketing (Segmented Marketing)Targeting several segments and
designing separate offers for each. Lux , lifebuoy Bright, Bonus, Bonus Tri StarCapri , OpelToyota , Lexus
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Market Targeting Developing a stronger position
within several segments creates more total sales than undifferentiated marketing across all segments.
But also increases cost of doing business
Niche or Concentrated Marketing
Going for large share of small segment rather than small share of large market
Advantages: Better adaptation, less competitors
Example: Soap for people with Acne or any rear disease, BMW
Highly profitable, but risky as well !!!!
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Market TargetingMicro Marketing
Tailoring products and marketing programs to suit the tastes of specific individuals and locations.
LOCAL MarketingTailoring to the needs of
local customer groups Ex: Cities, Neighborhood,
Local Stores (Makro)INDIVIDUAL Marketing
Tailoring to the needs of individual customers
Car, Suit, Candies
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Market TargetingChoosing A Target Marketing Strategy
Following factors are considered when choosing a target marketing strategy Company Resources Degree of Product Variability Product Life Cycle Stage Market Variability Competitors Marketing Strategies
Socially Responsible Target Marketing Smart Targeting help companies and
customers as well. Targeting kids. Spill over of adult
products to kids section. Targeting kids may be good.
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Positioning for Competitive Advantage
Products positioning: The way the product is defined by
consumers on important attributes, The place the product occupies in the minds of the consumer relative to competitors products.
The impression, perception of product
(Colgate- Cavity) (Lux – Beauty) (Dettol – Antibacterial) (Head & Shoulders – Dandruff) (Suzuki – economy car) (Mercedes – Luxury Car) (Porsche – Performance)
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Perceptual MapPerception of one’s brand with competing brand
on important buying dimensions.
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Price
Luxury Performance
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Choosing a Positioning Strategy
Some firms find it easy to choose their positioning strategy (for ex: quality) but in many cases , two or more firms will go after the same position. Thus a company will have to find other ways to set itself apart.
Three steps of positioning task are Identifying possible competitive
advantagesChoosing the right competitive
advantagesSelecting an over all positioning
strategy
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Choosing a Positioning Strategy
Identifying Possible Competitive Advantages Finding competitive advantages Positioning can not be based on empty promises A company may differentiate on the basis of
Product Line (little variation, highly differentiated) (features, performance, style)
Service Differentiation (Speedy, convenient, careful) (Easy paisa, TCS, Dominos)
Channel Differentiation (Direct Channel) (Dell) People Differentiation (Trained, Competent,
Courteous, Friendly) Image Differentiation (Brand Image)Image
must be supported by every thing the company says or does.
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Choosing a Positioning Strategy
Choosing The Right Competitive AdvantagesHow many differences to
promoteOne (USP)More than one
Which Differences to promote ImportantDistinctiveSuperiorCommunicablePreemptiveAffordable Profitable
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Selecting an Over All Positioning Strategy
Consumer typically choose products and services that give them the greatest value
Value Proposition: The full positioning of a brand – the full mix of benefits upon which it is positioned. Mercedes’ value proposition
hinges on luxury but also includes reliability, roominess, styling, safety
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Communicating and Delivering the Chosen Position
Positioning the company calls for concrete actions.
Designing the marketing mix involves working out the tactical marketing details fo the positioning strategy.
Establishing a positioning takes time, but can be destroyed very quickly
A products position should evolve gradually (not abruptly) as it adapts to the ever changing marketing environment.
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GOOD NEWS !
Quiz
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