Transcript Chapter 7

Marketing 7
Segmentation & Targeting
Segmentation and Targeting - 7
Bases for segmentation
Requirements for effective segmentation
Segmentation and targeting strategies
Positioning for a competitive advantage
One to one marketing
7.1
Market Segmentation
Market
Market Segment
Segmentation
7.2
Why Segmentation?
.
Opportunities for building and
strengthening longterm relationships with key customers.
Improved marketing efficiency and effectiveness.
Better understanding of the competitive marketing
environment.
Faster response to the changing needs of customers.
7.3
Criteria for Successful
Segmentation
Segments must be:
– Substantial
– Identifiable and Measurable
– Accessible
– Responsive
7.4
Segmenting the Consumer
Market
Geographic
Demographic
7.5
Segmenting the Consumer
Market
Psychographics
Benefits sought
Usage rate
7.6
Segmenting the B2B Market
Company Characteristics
Buying Process
Customer Relationship
7.7
Segmentation
Select market/product
Select basis or bases for segmenting
Select segment descriptors
Profile and analyze segments
Select target market
Design & implement appropriate strategies
7.8
EXERCISE
Proctor and Gamble decided to a air a Spanish language TV spot for
Crest Whitening Plus Scope during the Grammy awards. Nike and
Pepsi have experimented with Spanish TV ads. Marketers say the
Hispanic market is growing and has unique needs.
1) Is this a good market to target? Why?
2) Select a product that would be good to
target at this segment. Describe why and
design an ad to motivate the consumer to
buy. Where would the ad be placed and
why.
7.9
Market Coverage Strategies
Undifferentiated marketing
Concentrated marketing
Multi-segment targeting
7.10
Segmentation Strategies
Undifferentiated
Mix 1 (A-E)
A
B
Mix 2 (C)
C
Mix 2 (E)
D
Mix 3 (E)
E
Differentiated
Concentrated
One-to-One Marketing
Definition – an individualized marketing
approach that uses consumer information to
build long-term, personalized and profitable
relationship with individual consumers
Refined and focused approach
–
–
–
–
–
Identifying the best customers
Retaining loyal customers
Targeting marketing communications
Reinforcing purchase decisions
Improving customer service
7.13
Evolution of One-to-One
Marketing
Return to the approach used before the
Industrial Revolution
Increasing diversity
Today consumers demand more
Technology makes it possible
Decreasing brand loyalty
Demand for accountability
7.14
Evolution of One-to-One
Marketing
Aggregate profiles of consumers are not sufficient anymore
Use customer information to develop compelling
communications
Still a goal not a reality for most companies
Winners will be those who understand how and why consumers
buy what they do
7.15
Primary Concerns With One-toOne Marketing
1-1 means knowing what consumers value
Consumers value privacy, relationship must be
built on trust
Little understanding on how companies use data
Little regulation
7.16
Product Positioning
A process designed to fit the product/service to a
target market in such a way as to set it apart
from competition.
– keeps employees focused on the total value
package
– customers use this position as a kind of
shorthand to perceptually map products
7.11
Positioning Bases
Attribute
Price / Quality
Use or application
User
Competition
Emotion
7.12
Attribute Y
High
D
A
B
E
F
Attribute X
High
Attribute X
Low
C
Attribute Y
Low
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