Transcript armstrong06_media - FSU Faculty/Staff Personal Page

6
Segmentation, Targeting, and
Positioning: Building the Right
Relationships with the Right
Customers
ROAD MAP: Previewing the Concepts
• Define the three steps of target marketing: market
•
•
•
segmentation, market targeting, and market
positioning.
List and discuss the major bases for segmenting
consumer and business markets.
Explain how companies identify attractive market
segments and choose a target marketing strategy.
Discuss how companies position their products for
maximum competitive advantage in the
marketplace.
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Steps in Market Segmentation,
Targeting, and Positioning
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Market Segmentation
Click the picture above to play video
Marriott offers
various brands of
lodging in order to
meet the needs of
particular customer
segments.
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Market Segmentation
Geographic
World Region or Country
Region of Country
City or Metro Size
Density or Climate
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Market Segmentation
Demographic
• Age, gender, family size, income,
occupation, etc.
• The most popular bases for segmenting
customer groups.
• Easier to measure than most other types
of variables.
6-6
Market Segmentation
Age and Life-Cycle Stage
• P&G has different toothpastes for different
age groups.
– Click to See Crest Products for Adults and Kids
• Avoid stereotypes in promotions.
• Promote positive messages.
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Age and Life-Cycle Segmentation
P&G targets kids with
Crest Kid’s Cavity
Protection toothpaste.
It’s gentle on tooth
enamel and has “funfilled sparkles and
sparkle fun flavor just
for kids.”
6-8
Market Segmentation
Gender
• Women make 90% of home improvement
decisions.
• Women influence 80% of all household
consumer purchases.
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Market Segmentation
Income
• Identifies and targets the affluent for
luxury goods.
• People with low annual incomes can be a
lucrative market.
• Some manufacturers have different grades
of products for different markets.
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Market Segmentation
Psychographic
Social Class
Lifestyle
Personality
6-11
Psychographic Segmentation
When Honda
markets its Reflex
and Elite scooters,
it appeals to the
rebellious,
independent kid in
all of us.
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Market Segmentation
Behavioral
• Occasions:
– Special promotions and labels for holidays.
• (e.g., Hershey Kisses)
– Special products for special occasions.
• (e.g., Kodak disposable cameras)
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Market Segmentation
Behavioral
• Benefits Sought:
– Different segments desire different benefits
from products.
• (e.g., P&G’s multiple brands of laundry detergents
to satisfy different needs in the product category)
• Click to see all of P&G's detergent offerings
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Market Segmentation
• User Status:
Behavioral
• Usage Rate:
– Nonusers, ex-users
– Potential users
– First-time users
– Regular users
– Light
– Medium
– Heavy
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Market Segmentation
Behavioral
• Loyalty Status:
– Brands
– Stores
– Companies
6-16
Market Segmentation
• Best to use multiple approaches in order to
identify smaller, better-defined target groups.
• Start with a single base and then expand to
other bases.
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Geodemographic Segmentation
• Claritas, Inc.
• Potential Rating Index for
•
•
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Zip Markets (PRIZM)
Based on U.S. Census
data
Profiles on 260,000 U.S.
neighborhoods
62 clusters or types
6-18
Description of PRIZM Cluster
BLUE BLOOD ESTATES
Blue Blood Estates are America’s wealthiest
socioeconomic neighborhoods, populated by upperclass, established managers, professionals, and
heirs to “old money.” They are accustomed to
privilege and living in luxurious surroundings. One in
10 millionaires can be found in Blue Blood Estates,
and there is a considerate drop from these heights to
the next highest level of affluence.
6-19
PRIZM Application
In marketing its Suave
shampoo, Helene Curtis uses
PRIZM to identify
neighborhoods with high
concentrations of working
women. Such women respond
best to advertising messages
that with Suave, “looking
great doesn’t have to cost a
fortune.”
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Interactive Student
Assignment
• Choose a partner and make a list of the
market segments to which you belong.
What segmentation variables did you take
into consideration when you placed
yourself into those segments?
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Segmenting Business Markets
• Consumer and business markets use many of
the same variables for segmentation.
• Business marketers can also use:
Operating Characteristics
Purchasing Approaches
Situational Factors
Personal Characteristics
6-22
Segmenting International Markets
Factors Used:
Geographic Location
Economic Factors
Political and Legal Factors
Cultural Factors
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Intermarket Segmentation
Teens show surprising
similarity no matter where in
the world they live. For
instance, this teen could live
almost anywhere. Thus,
many companies target
teenagers with worldwide
marketing campaigns.
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Requirements for Effective
Segmentation
Measurable
Accessible
Substantial
Differentiable
Actionable
6-25
Evaluating Market Segments
• Segment Size and Growth
– Analyze current segment sales, growth rates, and
expected profitability.
• Segment Structural Attractiveness
– Consider effects of: competitors, existence of substitute
products, and the power of buyers & suppliers.
• Company Objectives and Resources
– Examine company skills & resources needed to succeed in
that segment.
– Offer superior value and gain advantages over
competitors.
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Target Marketing Strategies
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Undifferentiated Marketing
• Focus is on common (not different) needs
of consumers.
• Product and marketing program are
geared to the largest number of buyers.
• Uses mass advertising and distribution.
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Differentiated Marketing
• Firm targets several market segments and
designs separate offers for each.
• The goal is to have higher sales and a
stronger position with each market
segment.
• This approach increases the costs of doing
business.
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Concentrated Marketing
• The focus is acquiring a large share of one
or a few segments of niches.
• Generally, there are fewer competitors.
• The Internet is ideal for targeting small
niche markets.
• There is some risk in focusing on only one
market.
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Micromarketing
• Tailoring products and marketing programs to
suit the tastes of specific individuals and
locations.
– Local Marketing: Tailoring brands and promotions
to the needs and wants of local customer
groups—cities, neighborhoods, specific stores.
– Individual Marketing: Tailoring products and
marketing programs to the needs and preferences
of individual customers.
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Choosing a Market Coverage Strategy
Factors to Consider:
Company Resources
Product Variability
Product’s Life-Cycle Stage
Market Variability
Competitors’ Marketing Strategies
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Socially Responsible Target Marketing
• Smart targeting helps both companies and
consumers.
• Target marketing sometimes generates
controversy and concern.
– Vulnerable and disadvantaged can be targeted.
– Cereal, cigarette, beer, and fast-food marketers
have received criticism.
– Internet has raised fresh concerns about
potential targeting abuses.
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Positioning for Competitive
Advantage
• Product’s position is the way the product is
defined by consumers on important
attributes.
• The place the product occupies in
consumers’ minds relative to competing
products.
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Positioning
At Olive Garden
Restaurants, “When
You’re Here, You’re
Family.”
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Positioning Map
Positioning
map for large
luxury SUVs
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Choosing a Positioning Strategy
#1 Identify a
set of possible
competitive advantages on
which to build a position
#2 Choose the right
competitive advantages
#3 Select an overall
positioning strategy
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Identifying Possible Competitive
Advantages
• Key to winning target customers is to
understand their needs better than
competitors do and to deliver more value.
• Competitive advantage – extent to
which a company can position itself as
providing superior value.
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Identifying Possible Competitive
Advantages
Product
Differentiation
(e.g., consistency,
durability, reliability,
repairability)
Image
Differentiation
Services
Differentiation
(e.g., speed, convenience,
careful delivery)
Channel
Differentiation
(e.g., convey benefits and
positioning)
People
Differentiation
(e.g., hiring, training
better people than
competitors)
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Positioning Errors
• Underpositioning:
– Failing to really position the company at all.
• Overpositioning:
– Giving buyers too narrow a picture of the
company.
• Confused Positioning:
– Leaving buyers with a confused image of a
company.
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Choosing Right Competitive Advantages
Important
Profitable
Distinctive
Affordable
Superior
Preemptive
Communicable
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Which Differences to Promote?
Unilever positioned
its bestselling Lever
2000 soap on three
benefits in one:
cleansing,
deodorizing, and
moisturizing
benefits. It’s good
“for all of your 2000
parts.”
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Value Proposition
“Much more for much
more” value
proposition: HäagenDazs offers its superpremium ice cream at
a price never before
charged.
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Rest Stop: Reviewing the Concepts
• Define the three steps of target marketing: market
•
•
•
segmentation, market targeting, and market
positioning.
List and discuss the major bases for segmenting
consumer and business markets.
Explain how companies identify attractive market
segments and choose a target marketing strategy.
Discuss how companies position their products for
maximum competitive advantage in the
marketplace.
6-46