Transcript Segmenting Product Markets

Marketing Strategy Planning Process
Narrowing down to focused strategy with quantitative and qualitative screening criteria
Customers
Needs and other
Segmenting
Dimensions
Company
Mission, Objectives,
& Resources
Targeting &
Segmentation
S.
W.
O.
T.
Positioning &
Differentiation
Competitors
Current &
Prospective
External Market Environment
Technology Political & Legal Social & Cultural
Economic
The External Environment Affects Marketing Opportunities
Economic
Dimensions
of the External
Environment
The External Environment Affects Marketing Opportunities
Economic
Dimensions
of the External
Environment
Technology
The External Environment Affects Marketing Opportunities
The External Environment Affects Marketing Opportunities
Economic
Dimensions
of the External
Environment
Political and
Legal
Technology
The External Environment Affects Marketing Opportunities
The External Environment Affects Marketing Opportunities
Cultural and social
Economic
Dimensions
of the External
Environment
Political and
Legal
Technology
Cultural/Social Influences
Considering International Opportunities
Considering International Opportunities
Considering International Opportunities
International Opportunities
Four Basic Types of Opportunities
Present
Products
Present
Customers
Market
Penetration
New
Customers
Note: hybrid combinations are common
New
Products
Four Basic Types of Opportunities
Present
Products
Present
Customers
Market
Penetration
New
Customers
Market
Development
•Note: hybrid combinations are common
New
Products
Four Basic Types of Opportunities
Present
Products
Present
Customers
Market
Penetration
New
Customers
Market
Development
•Note: hybrid combinations are common
New
Products
Product
Development
Four Basic Types of Opportunities
Present
Products
New
Products
Present
Customers
Market
Penetration
Product
Development
New
Customers
Market
Development
Diversification
•Note: hybrid combinations are common
Distinguishing Opportunities
Breakthrough
Opportunity
Distinguishing Opportunities
Breakthrough
Opportunity
vs.
Competitive
Advantage
Narrowing down to Focus on a Target Market
Broad generic market
Broad product market
Specific market
segment(s)
Target
Segment(s)
Examples of Generic Markets, Relevant Customer
Needs, and Specific Product-Markets
Generic markets…
and potential needs
Firms worldwide that
want to capture
images… Accuracy,
convenience,
flexibility, selfexpression, speed,
artistic capabilities
Relevant producttypes for some
broad productmarkets
Some specific
brands within
narrower
submarkets
Cameras, computer
scanners or printers,
duplicating machines,
magnetic resonance
imaging
Cameras: Nikon
35mm, Sony, Mavica,
Polaroid Instant, RCA
video, Kodak 70mm
movie cameras
Individualized Marketing
Segmentation Dimensions for Consumer Markets
Needs & other
behavioral
Segmentation Dimensions for Consumer Markets
Geographic
Needs & other
Demographic
behavioral
Demographic Segmentation and Promotion
Segmentation Dimensions for
Business/Organizational Markets
Kind of
Relationship
Purchasing
Method
Type of
Customer
Possible
Segmentation
Dimensions
Buying Situation
Demographics
Product Use
Evaluating Market Segments
Homogeneous
Within
Criteria for
Good
Segments
Evaluating Market Segments
Homogeneous
Within
Heterogeneous
Between
Criteria for
Good
Segments
Evaluating Market Segments
Homogeneous
Within
Heterogeneous
Between
Criteria for
Good
Segments
Substantial
Evaluating Market Segments
Homogeneous
Within
Heterogeneous
Between
Criteria for
Good
Segments
Substantial
Operational
Developing Market-Oriented
Strategies in Broad Product-Markets
Single Target
Market Approach
Multiple Target
Market Approach
Combined Target
Market Approach
The
Strategy
This approach segments the market
and picks one of the homogeneous
segments as the firm's target market.
The segmenter here aims at one
submarket with one marketing mix.
Developing Market-Oriented
Strategies in Broad Product-Markets
Single Target
Market Approach
Multiple Target
Market Approach
Combined Target
Market Approach
Strategy
1
This approach segments the market
and chooses two or more
segments as the firm's target market.
Strategy
3
The segmenter here aims at two or
more submarkets with a different
marketing mix for each.
Strategy 2
Developing Market-Oriented
Strategies in Broad Product-Markets
Single Target
Market Approach
The
Strategy
Multiple Target
Market Approach
Combined Target
Market Approach
This approach combines two or
More submarkets into a larger target
market as a basis for one strategy.
The combiner here aims at two
submarkets with one marketing mix.
Segmenting Product Markets
Name Broad ProductMarket
List Customer Needs
Process
for
Segmenting
Product-Markets
Segmenting Product Markets
Name Broad ProductMarket
List Customer Needs
Narrow Product-Markets
Identify
Determining Dimensions
Process
for
Segmenting
Product-Markets
Segmenting Product Markets
Name Broad ProductMarket
List Customer Needs
Narrow Product-Markets
Identify
Determining Dimensions
Process
for
Segmenting
Product-Markets
Name Possible
Market segments
Evaluate Segments
Segmenting Product Markets
Name Broad ProductMarket
List Customer Needs
Narrow Product-Markets
Identify
Determining Dimensions
Process
for
Segmenting
Product-Markets
Name Possible
Market segments
Evaluate Segments
Estimate Size
The Competitive Environment
Competitor
analysis
Key areas to
consider
The Competitive Environment
Competitor
analysis
Competitive
rivals
Key areas to
consider
The Competitive Environment
Competitor
analysis
Competitive
rivals
Key areas to
consider
Competitive
barriers
Product Space Positioning for Bar Soaps
High moisturizing
Nondeodorant
Deodorant
Low moisturizing
Product Space Positioning for Bar Soaps
High moisturizing
Zest
Tone
Lever 2000
Dove
Safeguard
Coast
Lux
Nondeodorant
Deodorant
Dial
Lifebuoy
Lava
Low moisturizing
Product Space Positioning for Bar Soaps
High moisturizing
Zest
Tone
7
4
Lever 2000
Dove
2
5
Safeguard
Coast
Nondeodorant
Lux
8
Deodorant
3
1
Dial
Lifebuoy
Lava
6
Low moisturizing
Evaluating Opportunities
Industry Attractiveness
High
Medium
Low
Business Strength
High
Medium
Low
Evaluating Opportunities
Industry Attractiveness
Low
Medium
High
Medium
No Growth
Low
Business Strength
High
Borderline
Growth
Marketing Strategy Planning Process
Narrowing down to focused strategy with quantitative and qualitative screening criteria
Customers
Needs and other
Segmenting
Dimensions
Company
Mission, Objectives,
& Resources
Targeting &
Segmentation
S.
W.
O.
T.
Positioning &
Differentiation
Competitors
Current &
Prospective
External Market Environment
Technology Political & Legal Social & Cultural
Economic