-MARKET SEGMENTATION-TRUNG HIEUTU OANH

YOUNG MARRKETERS

ELITE 2

1. MARKET SEGMENTATION

2. BRAND EQUITY

WHAT IS MARKET SEGMENTATION

MASS MARKETING MARKET SEGMENTATION TARGET MARKETING

is when almost the same product is used

for promotion & distribution for all

customers

is the process of understanding & dividing

the market into distinct groups of

consumers according to their needs,

characteristics or behaviors. It’s also a

compromise between mass marketing &

target marketing.

is a practice to identify and segment the

market & develop products and marketing

mixes for each segment or group of

customers

WHY MARKET SEGMENTATION

STRATEGY OFFERING MARKETING TACTICS

-Target market

-Offering strategy

-Product line

-Associated Service Bundle

-Advertising & other communication

(message & media)

-Distribution -Channels

-Pricing -Sales force allocation

-Promotion

Segmentation has great impact on strategy & tactical development

“understanding why people buy products and services like yours, which of those people you can best satisfy and what you can do to

make your product simply irresistible to them”

WHY MARKET SEGMENTATION-Segmentation allows firm to better satisfy the needs of its potential customers.

-Segmentation allows us to choose which buyers to target & provides important insights as how to appeal to them.

-Segmentation helps us use resources effectively, gain a focus, create value for target market & position our brand.

A GOOD MARKET SEGMENTATION IS

- Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified

- Accessible: the segments must be reachable through communication and distribution channels

- Substantial: the segments should be sufficiently large to justify the resources required to target them

- Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes.

- Durable: the segments should be relatively stable to minimize the cost of frequent changes.

Good market segmentation will result in segment members that are internally homogenous and externally

heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments

Segmentation should be able to

help an organization rapidly

evaluate new business

opportunities

STRATEGIC

LEVEL

Segmentation should yield

information to help craft successful

marketing offers for specific

prospects

OPERATIONAL

LEVEL

BASES FOR SEGMENTATION

DEMOGRAPHIC GEOGRAPHIC PSYCHOLOGICAL BEHAVIORAL

-Age

-Income

-Marital status

-Gender

-Education

-Family size

-Social status

-Occupation

-Region

-Size of metropolitan

-Population density

-Climate

-Activities

-Interests

-Opinions

-Attitudes

-Values

-Benefits sought

-Usage rate

-Brand loyalty

-User status

-readiness to buy

EXAMPLE: PAINT INDUSTRY1st

apartmentMoving in

Getting

childrenBuying

house

Remodeli

ng project

Summer

cottage

moving

Opportunity Industry

focus

INDUSTRY FOCUS

PRODUCT: technical properties (in/outdoor, surface, water repellant,…)

PRICE: price driven

PLACE: paint retailer

PROMOTION: segment aligned (TV, POSM, magazines,…)

OPPORTUNITY

PRODUCT: relevant added value (non toxic, anti bacteria, eco friendly)

PRICE: premium

PLACE: paint retailer

PROMOTION: segment aligned (children magazine)

EXAMPLE: DOVE

Marketing mix Segments

WOMAN

WOMAN , 50+

SUN

MEN

WHAT IS BRAND EQUITY

FIRM

BRAND 1

BRAND 2

BRAND 3

MARKETING

MARKETING

MARKETING

CONSUMER

BRAND EQUITY is how consumers think, feel, and act

with respect to the brand, as well as the prices, market

share & profitability that the brand commands for the

firm.

It’s important intangible asset that has psychological &

financial value to the firm

CONSUMER-BASED BRAND EQUITY

-

Consumer-based equity can be defined as the differential effect that brand

knowledge has on consumers’ response to the marketing activities of that brand

Customer-based brand equity occurs when the consumer has a high level of

awareness and familiarity with the brand and holds some strong, favorable, and

unique brand associations in memory.

Brand equity arises from differences in consumers’ response. They are the result

of consumers’ knowledge about the brand in the way they have felt, learnt, seen

& heard. Brand equity are reflected in perceptions, preferences & behaviors

related to all aspects of brand marketing.

BRAND EQUITY ELEMENTS

BRAND EQUITY

Name/symbol

BRAND

LOYALTY

PERCEIVED

QUALITYBRAND

AWARENESS

BRAND

ASSOCIATION

OTHER BRAND

ASSETS

Provide value to

customers by

enhancing customers’:

• Interpretation/Process

ing of information

• Confidence in the

Purchase decision

• Use satisfaction

Provide value to firm

by enhancing:• Efficiency &

effectiveness of

marketing programs

• Brand loyalty

• Prices/Margins

• Brand extensions

• Trade leverage

• Competitive

advantage

Brand equity creates value for

both the customer and the

firm.

BRAND EQUITY ELEMENTS: CONTINUEBRAND LOYALTY

Reflects how likely a customer

will be to switch to another

brand, especially when that

brand makes a change, either

in price or in product features.

• Reduced marketing costs

• Trade leverage

• Attracting new customers

via awareness and

reassurance

• Time to respond to

competitive threats

BRAND AWARENESS

Is the ability of potential buyer

to recognize or recall that

brand in a certain product

category

• Anchor to which other

associations can be

attached

• Familiarity which leads to

liking

• Visibility that helps gain

consideration

• Signal of

substance/commitment

PERCEIVED QUALITY

Perceived quality is a

perception by customers of

the overall quality or

superiority of a product or

service.

• Reason to buy

• Differentiate/ position

• Price premium

• Channel member interest

• Brand extensions

BRAND ASSOCIATIONS

A brand association is

anything “linked” in memory

to a brand.

• Help Process/Retrieve

Information

• Differentiate/Position

• Reason-to-Buy

• Create Positive

Attitudes/Feelings

• Basis for Extensions

OTHER BRAND ASSETS

Such as: patents, trademarks,

channel relationships, etc.

• Competitive advantages

HOW TO MEASUREThe Customer-based brand equity concept does not only show us steps

to get the highest objective of a brand - brand loyalty but also gives

guidance to measure brand by analyzing consumers’ both rational and

emotional responses based on their brand knowledge.

- Indirect approach: assess potential sources

of customer-based brand equity by identifying

and tracking consumers’ brand knowledge—all

the thoughts, feelings, images, perceptions,

and beliefs linked to the brand.

- Direct approach: assess the

actual impact of brand

knowledge on consumer

response to different aspects of

the marketing program.

EXAMPLES

RESONANCE

Consumer involvement,

community, attachment

JUDGEMENT FEELING

Innovative, loyalty,

leader, superiority

Happiness, sharing,

celebration, unify,

family & friends, self-

respect

PERFORMANCERefreshment,

unique flavor,

reference of colas,

energy, tasty

IMAGERY:

Happiness, Moments,

Christmas, social, fun

SALIENCE

Lovemark, everywhere, American values, fresh drink, sharing happiness,

community

RESONANCE

Fanta is among the most

well-known beverages

on the French soda

market. Strong customer

loyalty amongst teens

JUDGEMENTTaste & color:

recognizable.

Teens beverage:

mothers are purchases

& care about family

Fun, excited,

belonging to a

community,

reassuring, social

approval

FEELING

PERFORMANCEHigh tenure in fruit (12%), no

pulp, natural colorants.

No use of sugar but criticism

on the use of aspartame:

nuances credibility

IMAGERYConsuming a common

experience, less serious,

teenager drink

SALIENCEStrong historical inheritance. Redefined its positioning: Stronger awareness

among teens. High recognition and recall on the fruit soda market: strong

French market

THANK YOU