Transcript Basic Marketing, 13th edition

Chapter 3:
Focusing Marketing Strategy
With Segmentation and
Positioning
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Focusing Marketing Strategy with Segmentation
and Positioning (Exhibit 3-1)
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Generic & Product Markets
Generic Market – a market with broadly
similar needs and sellers offering various,
often diverse ways of satisfying those needs
(pg 62).
Product Market – a market with very similar
needs and sellers offering close substitute
ways of satisfying those needs (pg 62).
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
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., 1999
Irwin/McGraw-Hill
Criteria for Segmenting
 Customers within a segment should be homogeneous
 similar responses to marketing mix
 similar segmenting dimensions
 Customers in different segments are heterogeneous
 different responses to marketing mix
 different segmenting dimensions
 Segment is substantial
 segment is big enough to be profitable
 Segmenting dimensions are operational
 useful for identifying customers
 helpful in deciding on marketing mix
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
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., 1999
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., 1999
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., 1999
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., 1999
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., 1999
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., 1999
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 3-12
3-13
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
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 3-13
moisturizing
3-14
• Dial
• Lifebuoy
For use only with Perreault and McCarthy texts.
© The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill