Transcript marketing
Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman Shahid Market Segmentation Targeting & positioning Market Segmentation: Dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes. Market Segmentation Features of market segmentation • • • • • • It must be identifiable It must be accessible It must be optimum in size It must be profitable It must be durable It must be compatible Levels of Market Segmentation • • • • Mass Marketing Segment Marketing Niche (concentrated) marketing Micro Marketing Mass Marketing Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer Example of Mass Marketing Segment Marketing Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments (different income & age groups) Price Rupees: 9190 Example “Nokia” of Segment Marketing Price Rupees: 19290 Price Rupees: 38290 Niche (concentrated) marketing Focusing on sub-segments or niche with distinctive traits that may seek a special combination of benefits Micromarketing The practice of tailoring products and marketing programs to suit tastes of specific individuals and location – includes local marketing and individuals marketing. (Software companies, weapons companies) Bases for Segmenting Consumer Markets • Geography – – – – – – Nations Country Region of the country State City County Bases for Segmenting Consumer Markets • Demography – Age – Occupation – Gender – Education – Family size – Ethnicity – Family life cycle – Nationality – Income Bases for Segmenting Consumer Markets • Psychographics – Social class (lower lowers, upper lowers, working class, middle class, upper middles, lower upper, uppers uppers) – Lifestyle (Achievers, strivers, strugglers) – Personality (compulsive, gregarious, authoritarian, ambitious) Bases for Segmenting Consumer Markets • Behavior – – – – – – Purchase occasions Benefits User status Usage rate Loyalty status Readiness stage Bases for segmenting business markets • Demography – Industry which industries that buy this product should we focus on? – company size what size companies should we focus on? – Location what geographical areas should we focus on? Bases for segmenting business markets • Operating variables – – – – customer technologies usage rate user status customer service requirements Bases for segmenting business markets • Purchasing approaches – centralized vs. decentralized purchasing – current vs. potential customers – purchasing criteria Bases for segmenting business markets • Situational factors – urgency of need – application of product – size of order Evaluating market segments • Segment characteristics – – – – – Measurable Adequate size Different response Accessible Actionable Evaluating market segments • Segment structural attractiveness – – – – – number & strength of competitors availability & strength of substitute products potential market entrants supplier power buyer power Evaluating market segments • Fit with company objectives & resources Market Targeting Evaluating market segments • In evaluating different market segments, a firm must look at three factors: • segment size and growth • Segment structural attractiveness • Company objectives and resources Example of market targeting Technology, Agriculture, Textile, Education Target market Target market selecting market segments After evaluating different segments, the company must now decide and how many segments to serve. This is the problem target market selection. Target market A set of buyers sharing common needs or characteristics that the company decides to serve. Example of Target market Textile • • • • Females Males Children Senior citizens Example of Target market Textile for males Example of Target market Textile for Females Example of Target market Textile children & senior citizens Example of Target market Textile Bed sheets Curtains Woven garment Market coverage strategies • Undifferentiated marketing • Differentiated marketing • Concentrated marketing Undifferentiated marketing A marketing-coverage strategy in which firm decides to ignore market segment differences and go after the whole market with one offer. Example of Undifferentiated marketing Differentiated marketing A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each. Example of Differentiated marketing Concentrated marketing • A market-coverage strategy in which a firm goes after a large share of one or a few submarkets. Positioning for competitive advantage Product position:- the why the product is defined by consumers on important attributes – the place the product occupies in consumers, minds relative to competing products Example -1 Positioning for competitive advantage Honda civic advertises its low price. Example-2 Positioning for competitive advantage • BMW promotes performance