Transcript Competitive advantage

Chapter Six
Segmentation, Targeting,
and Positioning:
So Far, we have learned…
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What is marketing?
Customers’ needs and wants
Customer relationship
Marketing management philosophies
The five-steps of marketing process
Marketing environment factors
Marketing research process
Consumer behavior
Now, we are ready to do marketing
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Segmentation
Product Distribution
Price
Promotion
Target
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Steps in Target Marketing
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Market segmentation
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Target marketing
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Dividing a market into smaller groups of buyers with distinct
needs, characteristics, or behaviors requiring separate
products or marketing mixes.
Evaluating each segment’s attractiveness and selecting
one or more to enter.
Market positioning
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Setting the competitive positioning for the product and
creating a detailed marketing mix.
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Market Segmentation
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Key variables:
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Geographic
Demographic
Psychographic
Behavioral
No single way to segment a market.
May combine more than one variable to
better define segments.
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Market Segmentation
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Geographic:
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World region or country
Region of country
City or metro size
Density or climate
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Market Segmentation
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Demographic:
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Age, gender, family size, family life cycle, income,
occupation, education, race, religion, etc.
The most popular bases for segmenting customer
groups.
Easier to measure than most other types of
variables.
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Market Segmentation
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Age and Life-Cycle Stage:
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Example: P&G has different toothpastes for
different age groups.
Avoid stereotypes in promotions.
Promote positive messages.
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Market Segmentation
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Income:
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Identifies and targets the affluent for luxury goods.
People with low annual incomes can be a
lucrative market.
Some manufacturers have different grades of
products for different markets.
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Market Segmentation
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Psychographic:
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Social class (lower class, working class, middle
class, & upper class) or (values, interests, and
behaviors)
Lifestyle (adventurous, fishing, hunting)
Personality (sophisticated, confidence,
competence/intelligent, imaginative)
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Market Segmentation
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Behavioral:
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Occasion segmentation: buyers can be grouped
according to occasions
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Special promotions and labels for holidays.
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(e.g., Hershey Kisses)
Special products for special occasions.
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(e.g., Kodak disposable cameras)
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Market Segmentation
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Behavioral:
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Benefits Sought: group buyers according to the
different benefits
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Different segments desire different benefits from
products.
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P&G’s multiple brands of laundry detergents to satisfy different
needs in the product category
Nokia provides different features to satisfy different needs
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Market Segmentation
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Behavioral:
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User Status
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Usage Rate
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Nonusers, ex-users, potential users, first-time users,
regular users
Light, medium, heavy
Loyalty Status
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Brands, stores, companies
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Market Segmentation
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Best to use multiple approaches in order to
identify smaller, better-defined target groups.
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Start with a single base and then expand to other
bases.
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Criteria for Targeting
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Segment Size and Growth
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Segment Structural Attractiveness
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Analyze current segment sales, growth rates, and
expected profitability.
Consider competition, existence of substitute products,
and the power of buyers and suppliers.
Company Objectives and Resources
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Examine company skills & resources needed to succeed
in that segment.
Offer superior value and gain advantages over
competitors.
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Target Marketing Strategies
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Undifferentiated (mass) marketing
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Differentiated (segmented) marketing
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Targets several segments and designs separate
offers for each
Concentrated (niche) marketing
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Ignores segmentation opportunities
Targets one or a couple small segments
Micromarketing (local or individual marketing)
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Micromarketing
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Tailoring products and marketing programs to
suit the tastes of specific individuals and
locations.
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Local Marketing: Tailoring brands and promotions
to the needs and wants of local customer
groups—cities, neighborhoods, specific stores.
Individual Marketing: Tailoring products and
marketing programs to the needs and preferences
of individual customers.
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Positioning for Competitive Advantage
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Product’s position is the way the product is
defined by consumers on important
attributes, or as the place the product
occupies in consumers’ minds relative to
competing products.
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Perceptual position maps can help define a
brand’s position relative to competitors.
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Choosing a Positioning Strategy
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Identify a set of possible competitive
advantages on which to build a position.
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Competitive advantage – extent to which a
company can position itself as providing superior
value, achieved via differentiation.
Choose the right competitive advantages.
Select an overall positioning strategy.
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Identifying Possible Competitive Advantages
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Product differentiation (features, style, or
design)
Services differentiation (speedy, convenient,
or delivery)
Image differentiation (quality, logo, or color)
People differentiation (trained people,
friendly)
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Positioning Errors
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Underpositioning:
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Overpositioning:
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Failing to really position the company at all.
Giving buyers too narrow a picture of the
company.
Confused Positioning:
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Leaving buyers with a confused image of a
company.
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Tips: Communicating and Delivering the
Chosen Position
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Company must take strong steps to deliver
and communicate the desired position to
target consumers.
The marketing mix efforts must support the
positioning strategy.
Must monitor and adapt the position over
time to match changes in consumer needs
and competitors’ strategies.
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