Chapter 3, 4 and 5 - Segmentation, Targeting and Positioning.pptx
- 1. Segmentation, Targeting, and Positioning •Building the Right Relationships with the Right Customers • Lesson 3
- 2. Learning Goals 1. Learn the three steps of target marketing, market segmentation, target marketing, and market positioning 2. Understand the major bases for segmenting consumer and business marketing strategy 3. Know how companies identify attractive market segments and choose target marketing strategy 4. Realize how companies position their products for maximum competitive advantage in the marketplace
- 3. • Sells multiple brands within the same product category for a variety of products • Brands feature a different mix of benefits and appeal to different segments • Has also identified different niches within certain segments • Product modifications are useful: Tide offers seven different product formulations to serve different niches’ needs Case Study Procter & Gamble
- 4. Steps in market segmentation, targeting and positioning Market Segmentation ● ● Identify bases for segmenting the market Develop segment profiles Target Marketing ● Develop measure of segment attractiveness ● Select target segments Market Positioning ● ● Develop positioning for target segments Develop a marketing mix for each segment 7 - 4 Goal 1: Learn the three steps of target marketing
- 5. Definition Goal 2: Understand the major bases for segmentation Market Segmentation: ● Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
- 6. Segmenting Consumer Markets Goal 2: Understand the major bases for segmentation Geographical segmentation Demographic segmentation ● Most popular segmentation Psychographic segmentation ● Lifestyle, social class, and personality-based segmentation Behavioral segmentation
- 7. • World region or country • U.S. region • State • City Geographic Segmentation Variables Goal 2: Understand the major bases for segmentation • Neighborhood • City or metro size • Density • Climate
- 8. Demographic Segmentation Variables Goal 2: Understand the major bases for segmentation • Age • Gender • Family size • Family life cycle • Income • Occupation • Education • Religion • Race • Generation • Nationality
- 9. • Occasions • Benefits • User Status • Attitude Toward the Product Behavioral Segmentation Variables Goal 2: Understand the major bases for segmentation • User Rates • Loyalty Status • Readiness Stage
- 10. Segmenting Business Markets Goal 2: Understand the major bases for segmentation Demographic segmentation ● Industry, company size, location Operating variables ● Technology, usage status, customer capabilities Purchasing approaches Situational factors ● Urgency, specific application, size of order Personal characteristics ● Buyer-seller similarity, attitudes toward risk, loyalty
- 11. Segmenting International Markets Goal 2: Understand the major bases for segmentation Geographic segmentation ● Location or region Economic factors ● Population income or level of economic development Political and legal factors ● Type / stability of government, monetary regulations, amount of bureaucracy, etc. Cultural factors ● Language, religion, values, attitudes, customs, behavioral patterns
- 12. Requirements for Effective Segmentation Goal 2: Understand the major bases for segmentation Measurable ● Size, purchasing power, and profile of segment Accessible ● Can be reached and served Substantial ● Large and profitable enough to serve Differentiable ● Respond differently Actionable ● Effective programs can be developed
- 13. Target Marketing Goal 3: Know how companies identify and target attractive segments Target Market ● Consists of a set of buyers who share common needs or characteristics that the company decides to serve
- 14. Target Marketing Goal 3: Know how companies identify and target attractive segments Evaluating Market Segments ● ● Segment size and growth Segment structural attractiveness ● ● ● ● Level of competition Substitute products Power of buyers Powerful suppliers ● Company objectives and resources
- 15. Target Marketing Goal 3: Know how companies identify and target attractive segments Selecting Target Market Segments ● ● ● ● Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micromarketing (local or individual)
- 16. Choosing a Target Marketing Strategy Goal 3: Know how companies identify and target attractive segments Considerations include: ● ● ● ● ● Company resources The degree of product variability Product’s life-cycle stage Market variability Competitors’ marketing strategies
- 17. Target Marketing Goal 3: Know how companies identify and target attractive segments Socially Responsible Targeting ● ● ● Some segments, especially children, are at special risk Many potential abuses on the Internet, including fraud Internet shoppers Controversy occurs when the methods used are questionable
- 18. Positioning Goal 4: Realize how companies position their products Positioning: ● ● ● ● The place the product occupies in consumers’ minds relative to competing products. Typically defined by consumers on the basis of important attributes. Involves implanting the brand’s unique benefits and differentiation in the customer’s mind. Positioning maps that plot perceptions of brands are commonly used.
- 19. Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy ● ● ● ● ● Differentiation can be based on Products Services Channels People Image Topics Choosing a Positioning Strategy Goal 4: Realize how companies position their products
- 20. Market Segmentation • How many differences to promote? ● Unique selling proposition Several benefits • Which differences to promote? Criteria include: ● Important Distinctive Superior Communicable • Preemptive Affordable ● ● ● ● ● ● Topics Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy Profitable ● Goal 4: Realize how companies position their products
- 21. Market Segmentation ● ● ● ● ● • Value propositions represent the full positioning of the brand • Possible value propositions: More for More More for the Same More for Less The Same for Less Less for Much Less Topics Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy Goal 4: Realize how companies position their products
- 22. Developing a Positioning Statement Goal 4: Realize how companies position their products Positioning statements summarize the company or brand positioning ● EXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference)
- 23. Communicating the Positioning • Companies must be certain to DELIVER their value propositions. • Positions must be monitored and adapted over time. Goal 4: Realize how companies position their products