Transcript segmentation

PRINCIPLES OF MARKETING
Market Segmentation,
Targeting, and Positioning
for Competitive Advantage
Steps in STP
6. Develop Marketing
Mix for Each Target Segment
5. Develop Positioning
for Each Target Segment
4. Select Target
Segment(s)
3. Develop Measures
of Segment Attractiveness
Market
Positioning
Market
Targeting
2. Develop Profiles
of Resulting Segments
1. Identify Bases
for Segmenting the Market
Market Segmentation
Step 1. Market Segmentation
Levels of Market Segmentation
Mass Marketing
Same product to all consumers
(no segmentation)
Segment Marketing
Different products to one or more segments
(some segmentation)
Niche Marketing
Different products to subgroups within segments
( more segmentation)
Local marketing
Products to suit the tastes of individuals or locations
(complete segmentation)
Local marketing
Products to suit the tastes of individuals or locations
(complete segmentation)
Local Marketing
Individual Marketing
Tailoring brands/ promotions to
local customer groups, i.e Sears
Tailoring products and programs to
the needs of individual customers,
i.e. Dell
Step 1. Market Segmentation
Bases for Segmenting Consumer Markets
Geographic
Nations, states,
regions or cities
Descriptive
Demographic
Age, gender,
family size and
life cycle,
or
income
Psychographic
Social class, lifestyle,
or personality
Behavioral
Occasions, benefits,
uses, or responses ,
attitude
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.”
Psychographic Segmentation
When Honda
markets its
ACTIVA , it
appeals to the
rebellious,
independent
women & girls.
Using Multiple Segmentation
Bases: Geodemographics
Step 1. Market Segmentation
Bases for Segmenting Business Markets
Personal
Characteristics
Situational
Factors
Demographics
Bases
for Segmenting
Business
Markets
Purchasing
Approaches
Operating
Characteristics
Step 1. Market Segmentation
Bases for Segmenting International Markets
Industrial Markets
Geographic
Cultural
Economic
Political/
Legal
Intermarket
Step 1. Market Segmentation
Requirements for Effective Segmentation
Measurable
• Size, purchasing power, profiles
of segments can be measured.
Accessible
• Segments must be effectively
reached and served.
Substantial
• Segments must be large or
profitable enough to serve.
Differential
• Segments must respond
differently to different marketing
mix elements & actions.
Actionable
• Must be able to attract and serve
the segments.
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?
Step 2. Market Targeting
Evaluating Market Segments
• 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.
Step 2. Market Targeting
Market Coverage Strategies
Company
Marketing
Mix
Market
A. Undifferentiated Marketing
Company
Marketing Mix 1
Company
Marketing Mix 2
Company
Marketing Mix 3
Segment 1
Segment 2
Segment 3
B. Differentiated Marketing
Company
Marketing
Mix
Segment 1
Segment 2
Segment 3
C. Concentrated Marketing
Step 2. Market Targeting
Choosing a Market-Coverage Strategy
Company
Resources
Product
Variability
Product’s Stage
in the Product Life Cycle
Market
Variability
Competitors’
Marketing Strategies
Step 3. Positioning for Competitive
Advantage
• Positioning – the act of designing company
offering & image to occupy distinctive place in
the mind of target market
• Points -of -difference (PODs)
– Attributes or benefits consumers strongly associate with brand
» E.g.- FedEx (overnight delivery), Nike (performance)
• Points-of-parity (POPs)
– Associations that are not necessarily unique to brand but may be
shared with other brands
Developing Competitive
Differentiation
Product
Service
Areas for Competitive
Differentiation
Personnel
Image
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)
symbols
media
Image
Atmosphere
Events
Steps to 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 adn
delivering the chosen position to the
market.
Selecting the Right Competitive
Advantages
Important
Profitable
Affordable
Preemptive
Criteria
for
Determining
Which
Differences
to
Promote
Distinctive
Superior
Communicable
Positioning Errors
• Under positioning:
– Failing to really position the company at all.
– E.g.
• Over positioning:
– Giving buyers too narrow a picture of the company.
– E.g.
• Confused Positioning:
– Leaving buyers with a confused image of a company.
– E.g.
• Doubtful positioning:
– Buyers may find hard to believe the brand claims in view of product
features , price or manufacturer.
– E.g.
Step 3. Positioning for Competitive
Advantage: Strategies
Product
Class
Away from
Competitors
Product
Attributes
Benefits
Offered
G
H
C
A
Against a
Competitor
D
E
B
F
Users
Usage
Occasions