Transcript Basic Marketing, 13th edition

Chapter 3:
Focusing
Marketing Strategy with
Segmentation and
Positioning
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 productmarkets.
3-2
5. Know what marketing
segmentation is and how
to segment productmarkets 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.
MARKETING STRATEGY PLANNING PROCESS
Narrowing down to focused strategy with screening criteria
Customers
Company
S.
W.
O.
T.
Segmentation
& Targeting
Differentiation
& Positioning
External Market Environment
3-3
Place
Target
Market
Competitors
Exhibit 3-1
Product
Price
Promo
TYPES OF OPPORTUNITIES
Four Basic Types of Opportunities
Present Products
Present Markets
New Markets
Exhibit 3-2
3-4
New Products
Market
Penetration
Product
Development
Market
Development
Diversification
CONSIDERING INTERNATIONAL OPPORTUNITIES
3-5
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
GENERIC AND PRODUCT-MARKET DEFINITIONS
Generic
Market
Definitions
Customer
(user) needs
Exhibit 3-4
3-7
+
Customer
types
+
Geographic
area
ProductMarket
Definitions
+
Product type
(good and/or service)
MARKET SEGMENTATION
Broad product-market (or generic market) name goes here
(The bicycle-riders product-market)
Submarket 1
(Exercisers)
Submarket 2
(Off-road
adventurers)
Exhibit 3-5
3-8
Submarket 3
(Transportation riders)
Submarket 4
(Socializers)
Submarket 5
(Environmentalists)
MARKET SEGMENTATION
Dependability dimension
Exhibit 3-6
3-9
B. Product-market showing
six segments
Status dimension
Status dimension
A. Product-market showing
three segments
Dependability dimension
MARKET-ORIENTED APPROACHES
A segmenter
The
Strategy
Exhibit 3-7
3-10
Using single target
market approach—
can aim at one
submarket with one
marketing mix
MARKET-ORIENTED APPROACHES
A segmenter
Strategy
One
Strategy
Three
Strategy
Two
Exhibit 3-7
3-11
Using multiple target
market approach—
can aim at two or
more submarkets
with different
marketing mixes
MARKET-ORIENTED APPROACHES
A combiner
The
Strategy
Using combined
target market
approach—can aim
at two or more
submarkets with the
same marketing mix
Exhibit 3-7
3-12
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 :
Exhibit 3-12
3-13
Specific Purchase Influence
Attraction to Brand
POSITIONING OF DIFFERENT
BAR SOAPS
High
moisturizing
• Tone
• Zest
7
4
• Lever 2000
• Dove
2
5
• Safeguard
3
• Lux
8
Nondeodorant
Deodorant
1
“Product Space”
• Lava
Representing Consumers’ Perception for
6
Different Brands of Bar Soap
Low
Exhibit 3-13
moisturizing
3-14
• Dial
• Lifebuoy
KEY TERMS
Breakthrough Opportunities
Competitive Advantage
Differentiation
S.W.O.T. 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