Transcript market segment

Applied Mareking
What is a market segment?
A market segment consists of a group of
customers who share a similar set of needs
and wants.
Segmenting consumer markets
1.
Geographic
2.
Demographic
3.
Psychographic
4.
Behavioural
Geographic segmentation
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Region of the world
Country
Region of a country
City
Demographic segmentation
Age and life cycle
Life Stage
Gender
Income
Generation
Social class
Psychographic segmentation
Psychographic segmentation divides buyers
into different groups on the basis of traits,
lifestyles or values.
AIO Factors that describe individual lifestyles
Activities
Interests
Opinions
Behavioral segmentation: decision
roles
Initiator
Influencer
Decider
Buyer
User
Behavioural segmentation:
behavioural variables
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Occasions
Benefits
User status
Usage rate
Buyer-readiness
Loyalty status
Attitude
Behavioral segmentation breakdown
Figure 10.4
Behavioural segmentation breakdown
Figure 10.3
Brand funnel
Relationship Ladder
The conversion model
Convertible
Shallow
Users
Strongly
unavailable
Weakly
unavailable
Average
Entrenched
Nonusers
Ambivalent
Available
Purchase decision Process
AIDA Model
Attention
Interest
Desire
Action
Three Product Levels
What is positioning?
Positioning is the act of designing the
company’s offering and image to occupy a
distinctive place in the mind of the target
market.
Examples of Value propositions
Table 10.8
Examples of value propositions
Source : M. R. V. Goodman, Durham University
Defining associations
Points-of-difference
(PODs)
 Attributes or benefits
consumers strongly
associate with a brand,
positively evaluate and
believe they could not
find to the same extent
with a competitive brand.
Points-of-parity
(POPs)
 Associations that are not
necessarily unique to the
brand but may be
shared with other brands.
 Necessary but not
sufficient
Negatively correlated attributes and
benefits
Table 10.10
Examples of negatively correlated attributes and benefits
Understanding competitive
structure of a market
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How do customers view the brand?
Which competitive brands do customers perceive
to be their closest competitors?
What market offering and company attributes
are most responsible for these perceived
differences?
What is perceptual mapping?
Perceptual
(or positioning) mapping
is a marketing tool that
enables marketers to plot the
position of their
offering against those
of the competition?
Figure 10.7
Example positioning map of the UK chocolate block sector market
Source : M. R. V. Goodman, Durham University
Product differentiation
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Product form
Features
Performance
Conformance
Durability
Reliability
Reparability
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Style
Design
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance
Slide 15.25
Lessons from product life cycles
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Products (market offerings) have a limited life.
Sales pass through distinct stages, each posing different
challenges, opportunities and problems
to the seller.
Profits rise and fall at different stages of the product
life cycle.
Products require different marketing, financial,
manufacturing, purchasing and human resource
strategies at each stage.
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 15.26
Long-range product life cycle
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Introduction
Growth
Maturity
Decline
Slide 15.29
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 15.30
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Slide 15.31
PLC Style, Fashion, Fad
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Where do these fall on the PLC
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FAX
TABLET PC
DESKTOP PC
MOBILE PHONE
SMART PHONE
CALCULATOR
ULTRABOOK
E-READER
What about these?
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CRT TV
LCD TV
LED TV
PLASMA TV
3-D TV
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WINDOWS 98
WINDOW XP
WINDOWS VISTA
WINDOWS 7
WINDOWS 8
Ansoff’s Matrix
Current Products
New Products
Current Markets
Market penetration
strategy
Product development
strategy
New Markets
Market development
strategy
Diversification strategy