Session 13 MG 220 BBA - 29 Sep 10

MG 220 Marketing ManagementBBA 09 – Sec C

Fall 2010

Muhammad Talha Salam, Asst. [email protected]

Access it online: www.slideshare.net/talhasalam

Part 3: Connecting with Customers

> Market TargetingPart 4: Building Strong Brands> Overall review of Part 4

> Discussion on Term Project

Class Presentation | Session 13 | 29 Sep 2010

MG 220 Marketing Management 2Access it online: www.slideshare.net/talhasalam

Market Targeting

• Marketers job is to identify segments and select which ones to target

• Segments are identified => Now selecting which ones to target

• More and more refinement helps identify smaller, more focused segments andBetter target them


Market TargetingEffective Segmentation Criteria

• Market segments must rate favorably on following criteria:

– Measurable• Size, purchasing power, characteristics can be measured easily• It should not be vague

– Substantial• Large & profitable enough to serve• Worth going after with a tailored marketing program/effort

– Accessible• Can be effectively reached and served

– Differentiable• Conceptually distinguishable• Respond differently to different marketing-mix elements

– Actionable• Effective programs can be formulated for that particular segment


Market TargetingEvaluating and Selecting the Market Segments• Evaluation process

– Based on five criteria (mentioned previously)– Vis-à-vis two factors:

• Segment’s overall attractiveness• Company’s objectives and resources

– A company must evaluate segments carefully by answering all criteria clearly and ensuring that it is favorable


Market TargetingEvaluating and Selecting the Market Segments• Selecting Market Segments

– Selection is done based on evaluation of market segments

– Five different patterns are used:

1. Single-segment concentration2. Selective Specialization3. Product Specialization4. Market Specialization5. Full Market coverage

(illustrations ahead are in a grid pattern showing M-Market vs. P-Product)


Market TargetingEvaluating and Selecting the Market Segments1. Single-segment concentration

– Pick only one segment– Focus on it and achieve leadership and thus– Have high returns of investmentDownside:– Too much dependency implies increased risk

Generally:– Companies tend to operate in more than one segment– Helps diversify and absorb costs in a better way– Concept of Supersegments: Segments sharing

exploitable similarities: Companies try to operate in supersegments too


Market TargetingEvaluating and Selecting the Market Segments2. Selective Specialization

– Pick different segments having no synergy– Each is objectively attractive and appropriate

– Different approaches can be:• Different products in different markets (as in fig.)• Different segments (totally isolated from each other)

picked for one product


Market TargetingEvaluating and Selecting the Market Segments3. Product Specialization

– Focus on one product– Offered across all markets (segments)– Too much focus on product alone– What if product is replaced by a better

product or technology?– Example: Kodak’s camera films


Market TargetingEvaluating and Selecting the Market Segments4. Market Specialization

– Focus on one market– Focus is on serving as many needs of that market– Again, too much dependency on one area– What if this market is not able to grow?

– Example: Institutes too much focused onaccounting market (CA, ACCA, CAT etc.) Had to diversify into finance programs (CFA, CISA)


Market TargetingEvaluating and Selecting the Market Segments5. Full Market Coverage

– Serve all customer segments for all their needs– Very hard to do. Generally large firms can do it only

• E.g. Microsoft (software market)

– Two broad strategies/approaches:• Undifferentiated Marketing: Firm ignores segment

differences and offers one product to allCoke’s 300 ml bottle example applies here

• Differentiated Marketing: Different products fordifferent segments – still covering all segmentsMicrosoft targeting different segments in software market differently


Market TargetingEvaluating and Selecting the Market SegmentsManaging Multiple Segments• Using segment managers• Each is responsible for growth and profitability of own

segments

Differentiated Marketing Costs• In differentiated marketing (targeting different segments with

different products), higher sales are possible than undifferentiated marketing but costs are also increased.– Product modification costs– Manufacturing costs– Administrative costs– Inventory costs– Promotion costs

• Marketers need to understand the trade-off and be cautious of segmentation (particularly over-segmentation)


Market TargetingAdditional Considerations

Segment-by-Segment invasion plans• Recommended: enter one segment at a time• Add more with time• Segment-by-segment invasion plans should be kept as

confidential as possible

• Companies at times fail todevelop these plans

• How to enter blocked markets:Concept of megamarketing


Market TargetingAdditional Considerations

Updating Segmentation schemes• Market segmentation analysis should be done periodically

because business environment change

• How consumer attributes change and understanding of it helps update market segmentation

Ethical choice of market targets• Ensuring that marketing efforts are not exploiting

vulnerable groups in society• OR promoting harmful products


Fall 2010



Part 4: Building Strong Brands

> Overall review: Part 4

Class Presentation | Session 13 | 29 Sep 2010



Chap 9: Creating Brand EquityWhat is Brand Equity?Building Brand EquityMeasuring Brand EquityManaging Brand EquityDevising a Branding Strategy

Chap 10: Crafting the Brand PositioningDeveloping and Creating a Positioning StrategyDifferentiation StrategiesProduct Life-cycle marketing strategiesMarket Evolution

Chap 11: Dealing with CompetitionCompetitive forcesIdentifying CompetitorsAnalyzing CompetitorsCompetitive Strategies for Market LeadersOther Competitive StrategiesBalancing Customer and Competitor Orientations


Discussion on Term Project

Two Projects 10%Individual Project 3%

Project ReportIndividual Presentation (5 mins.)2-weeks beginning Oct 5, 20101 x deliverable | 1 x presentation

Team Project 7%Teams of 4 individuals eachProject ReportTeam Presentation4-weeks project beginning Oct 19,20103 x deliverables | 1 x presentation


Fall 2010




> What is Brand Equity?> Building Brand Equity> Measuring Brand Equity> Managing Brand Equity> Discussion on Mid-Term I

Class Presentation | Session 14 | 5 Oct 2010

Session 13 MG 220 BBA - 29 Sep 10

Business

Transcript of Session 13 MG 220 BBA - 29 Sep 10