Lecture 4b_Marketing segementation Bases.pdf
- 1. Lecture 4b: Bases for Segmentation and Targeting Prof. Eddy Kurobuza Tukamushaba Department of Business Administration and Management Business School
- 2. Factors Used to Segment International Markets Geographic Location Economic Factors Political and Legal Factors Cultural Factors
- 3. 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
- 4. Intermarket Segmentation Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries
- 5. Requirements for Effective Segmentation
- 6. • Size, purchasing power, profiles of segments can be measured. • Segments must be effectively reached and served. • Segments must be large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable • Segments must respond differently to different marketing mix elements & actions. • Must be able to attract and serve the segments.
- 8. Steps in the Target Marketing Process •Evaluating Market Segments •Selecting Target Market Segments
- 10. Segment Size and Growth –Analyze sales, growth rates and expected profitability. Segment Structural Attractiveness –Consider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers. Company Objectives and Resources –Company skills & resources relative to the segment (s). –Look for Competitive Advantages.
- 11. Choosing a Market-Coverage/Target- Marketing Strategy
- 13. Company Marketing Mix Market A. Undifferentiated Marketing Market Coverage Strategies
- 14. Segment 1 Segment 2 Segment 3 Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3 B. Differentiated Marketing
- 15. Segment 1 Segment 2 Segment 3 Company Marketing Mix C. Concentrated Marketing
- 16. Company Marketing Mix Individual Customer D. Custom Marketing Strategy or Micromarketing Strategy
- 17. Positioning for Competitive Advantage • Product’s Position - the place the product occupies in consumers’ minds relative to competing products; i.e. Volvo positions on “safety”. • Marketers must: –Plan positions to give products the greatest advantage –Develop marketing mixes to create planned positions
- 18. Choosing and Implementing a Positioning Strategy • Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation. • Step 2. Selecting the right competitive advantage. • Step 3. Effectively communicating and delivering the chosen position to the market.
- 19. Positioning Strategy Development Process Identify the competitors. Assess perceptions of them. Determine their positions. Analyze consumer preferences. Make the positioning decision.
- 20. Product Service Personnel Image Areas for Competitive Differentiation
- 21. Services Differentiation i.e. Delivery, Installation, Repair Services, Customer Training Services Product Differentiation i.e. Features, Performance, Style & Design, or Attributes Image Differentiation i.e. Symbols, Atmospheres, Events Personnel Differentiation i.e. Hiring, Training Better People Than Competitors Do Identifying Possible Competitive Advantages
- 22. Six Positioning Questions What position do we have now? What position do we want to own? From whom must we win this position? Do we have the money to do the job? Do we have the tenacity to stay with it? Does our creative strategy match it?
- 23. Positioning By What? Product Attributes Price/Quality Use or Application Product Class Product User Competitor Cultural Symbols
- 24. A Strategic Resource Must Be: Hard to copy Durable Tied to the company Not substitutable Superior
- 25. 5/26/2022 25 | Thank you for your attention