Transcript Essentials of Marketing, 8th Edition

Chapter 3:
Focusing
Marketing Strategy with
Segmentation and
Positioning
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Chapter 3 Objectives
When you finish this chapter, you should
1. Understand why marketing
strategy planning involves a
process of narrowing down
from broad opportunities to a
specific target market and
marketing mix.
2. Know about the different
kinds of marketing
opportunities.
3. Understand why opportunities
in international markets
should be considered.
4. Know about defining generic
markets and product-markets.
3-2
5. Know what marketing
segmentation is and how to
segment product-markets
into submarkets.
6. Know three approaches to
market-oriented strategy
planning.
7. Know dimensions that may
be useful for segmenting
markets.
8. Know what positioning is—
and why it is useful.
10. Understand the important
new terms.
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Marketing Strategy Planning Process
Narrowing down to focused strategy with screening criteria
Customers
Company
S.
W.
O.
T.
Segmentation
& Targeting
Product
Place
Target
Market
Differentiation
& Positioning
Price
Promo
Competitors
External Market Environment
Exhibit 3-1
3-3
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Types of Opportunities
Four Basic Types of Opportunities
Present Products
Present Markets
New Markets
New Products
Market
Penetration
Product
Development
Market
Development
Diversification
Exhibit 3-2
3-4
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Considering International Opportunities
3-5
For use only with Perreault and McCarthy texts.
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Narrowing Target Markets
Selecting
target
marketing
approach
Narrowing down to
specific product-market
All
customer
needs
Some
generic
needs
One
broad
product
market
Segmenting
into possible
target markets
Homogeneous
(narrow)
product
markets
Single
target
market
approach
Multiple
target
market
approach
Combined
target
market
approach
Exhibit 3-3
3-6
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Generic and Product-Market Definitions
Generic
Market
Definitions
Customer
(user) needs
Exhibit 3-4
3-7
+
Customer
types
+
Geographic
area
+
Product type
(good and/or service)
ProductMarket
Definitions
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Market Segmentation
Broad product-market (or generic market) name goes here
(The bicycle-riders product-market)
Submarket 1
(Exercisers)
Submarket 2
(Off-road
adventurers)
Submarket 3
(Transportation riders)
Submarket 4
(Socializers)
Submarket 5
(Environmentalists)
Exhibit 3-5
3-8
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Market Segmentation
B. Product-market showing
six segments
Status dimension
Status dimension
A. Product-market showing
three segments
Dependability dimension
Dependability dimension
Exhibit 3-6
3-9
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Market-Oriented Approaches
A segmenter
The
Strategy
Using single target
market approach—
can aim at one
submarket with one
marketing mix
Exhibit 3-7
3-10
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Market-Oriented Approaches
A segmenter
Strategy
One
Strategy
Three
Using multiple target
market approach—
can aim at two or
more submarkets
with different
marketing mixes
Strategy
Two
Exhibit 3-7
3-11
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Market-Oriented Approaches
A combiner
The
Strateg
y
Using combined
target market
approach—can aim
at two or more
submarkets with the
same marketing mix
Exhibit 3-7
3-12
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Segmentation Dimensions
Focus:
All Potential Dimensions
Relevant Purchase Behavior
Focus:
Qualifying Dimensions
Relevant Customer Type
Determining Dimensions
(Product Type)
Focus:
Determining Dimensions
(Brand Specific)
Focus :
Specific Purchase Influence
Attraction to Brand
Exhibit 3-11
3-13
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Positioning of Different Bar Soaps
High
moisturizing
• Tone
• Zest
7
4
• Lever 2000
• Dove
2
5
• Safeguard
• Lux
Nondeodorant
8
Deodorant
3
1
“Product Space”
• Lava
Representing Consumers’ Perception for
6
Different Brands of Bar Soap
Low
Exhibit 3-12
moisturizing
3-14
• Dial
• Lifebuoy
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
Key Terms
Breakthrough Opportunities
Competitive Advantage
Differentiation
SWOT Analysis
Market Penetration
Market Development
Product Development
Diversification
Market
Generic Market
Product-Market
Market Segmentation
3-15
Segmenting
Market Segment
Single Target Approach
Multiple Target Approach
Combined Target Approach
Combiners
Segmenters
Qualifying Dimensions
Determining Dimensions
Clustering Techniques
Positioning
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill