Professional Documents
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Rabeia Arshad
Usman Bukhari
Learning Objectives
Market Segmentation
Target Marketing Market Positioning Major bases for segmenting consumer &
business markets.
Learning Objectives
How companies identify attractive
Market Segmentation
Market Segmentation
Dividing a market into smaller groups of buyers with distinct needs , characteristics ,or behavior who might require separate products or marketing mixes.
Target Marketing
The process of evaluating each market segments attractiveness and selecting one or more segments to enter.
Market Positioning
Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers.
Geographic Segmentation
Dividing a market into different geographical units such as nations , states, regions, cities or neighborhoods.
Geographic Segmentation
World region or Country:-
Demographic Segmentation
Dividing a market into group based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race & nationality.
Demographic Segmentation
The consumer needs, wants & usage rates often vary closely with demographic variables. Easier to measure Even when market segments are defined on some other bases their demographic characteristics must be known.
Different age groups are under 6 6-11 12-19 20-34 35-49 50-64 65+
Gender Segmentation
Segmenting Variables
Psychographic Segmentation
Behavioral Segmentation Using Multiple Segmentation Basis
Fariha Naveed BBA 2006-10
Psychographic Segmentation
Dividing the market into groups according to social class, life style or personality characteristics.
Lifestyle A persons pattern of living as expressed in his or her activities, opinions, and interest. It involves measurement of AIO dimensions.
Social Class
Upper uppers
Personality
Adventurous
Authoritarian
Risk Taking
Ambitious
Behavioral Segmentation
Dividing the market into groups on the basis of consumer knowledge, attitude, use or response to a product.
Behavioral Segmentation
Occasion
Occasion Segmentation
Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchases, or use the purchased item.
Benefit Segmentation Dividing the market into groups according to the different benefits that consumers seek from the product.
Procter &Gamble has identified different detergent
segments.
User Status Dividing the market into the groups according to user status .
Non-users Ex-users
Potential users
First time users Regular users
Usage Rates
Loyalty Status
Consumer can be grouped on the basis of loyalty as
Somewhat loyal
Completely loyal
Non loyal
Using multiple variables for segmentation analysis to identify smaller, better defined target groups.
segmentation is Geodemographic segmentation. One of the leading life style segmentation systems is the PRIZM.
PRIZM System
The PRIZM system combines demographic factors with buying transaction data and lifestyle information taken from consumer surveys, to paint a precise picture of the consumer.
types or clusters. Like Blue Blood Estates (suburban areas populated by elite families) Shotguns and pickups (populated by rural blue collar workers and families) Hispanic Mix (highly brand conscious, quality conscious, and brand loyal)
With the availability of data and computer power, geodemographic marketers are continually refining their techniques by tracking and adding new segments and adjusting the older ones.
By
Muhammad Samie
04
Market Segmentation
1. 2. 3.
Major variables used for segmenting business markets are: Demographic Industry: Which industries should we serve? Company size: What size companies should we serve? Location: What geographical location should we serve?
4. Technology: What customer technologies should we focus on? 5. User or nonuser status: Should we serve heavy users, medium users, light users, or nonusers? 6. Customer capabilities: Should we serve customers needing many or few services?
7. Purchasing-function organization: Should we serve companies with highly centralized or decentralized purchasing organizations? 8. Power structure: Should we serve companies that are engineering dominated, financially dominated, and so on? 9. Nature of existing relationships: Should we serve companies with which we have strong relationships or simply go after the most desirable companies? 10. General purchase policies: should we serve companies that? Service contacts? Systems purchases? Sealed bidding?
12. Urgency: Should we serve companies that need quick sudden delivery or service? 13. Specific application: Should we focus on certain applications of our product rather than all applications? 14. Size of order: Should we focus on large or small orders?
15. Buyer-seller similarity: should we serve companies whose people and values are similar to ours? 16. Attitudes toward risk: Should we serve risk-taking or risk-avoiding customers? 17. Loyalty: Should we serve companies that shoe high loyalty to their suppliers?
Markets
Serving More Then One Markets
American Express
Market Segmentation
Market Segmentation
Actionable
Target Marketing
Target Marketing
The process of evaluating each market segments attractiveness & selecting one or more segments to enter
Undifferentiated Marketing
A market-coverage strategy in which a firm decides to ignore market segment differences & go after the whole market with one offer.
Differentiated Marketing A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
50
Concentrated Marketing
A market coverage strategy in which a firm goes after a
Normally used when company resources are limited Company gains a better understanding of the niches it
levels.
Micro Marketing
The practice of tailoring products and marketing programs to the needs of specific individuals and local customer groups. Rather then seeing a customer in every individual, micro-marketers see INDVIDUALS in every customer
Types of Micromarketing
Local Marketing
Tailoring brands and promotion to the needs and wants of local customer groups cities, neighborhoods, and specific stores.
Local Marketing
Drawbacks
Can drive up manufacturing and marketing cost by
Local Marketing
Benefits
Helps a company to market more effectively in
the face of pronounced regional and local differences in demographics and style.
Meets the needs of company's first-line
customer.
Individual Marketing
Tailoring products
and marketing programs to needs and preference of individual customer also labeled as markets of-one, customized marketing and oneto-one marketing.
At the LEGO factory website, fans can design there own ultimate LEGO model, show it off, and bring it to life.
Mass Customization
Mass customization is the process through which firms interact oneto-one with masses of customers to create customer-unique value by designing products and services tailor-made to individual needs.
special risk :
Children Inner-city minorities
consumers Internet shoppers
Controversy occurs
Most targeting market benefits both the marketer and the consumer. Nacara Cosmetiques markets cosmetics for ethnic women who have a thirst for the exotic
By Aisha Khalid
23
Positioning
The way the product is defind by consumers on important attributes ---- The place the product occupies in consumers minds relative to competing products.
Product Position
The way the product is defined by consumers on important attributes-the place the product occupies in consumers minds relative to competing products.
Positioning Maps Positioning maps are a useful tool for giving you a graphical idea of where your product stands vis--vis other products in the market at a given time.
Range rover
High
Price
Low
Orientation
Luxury Performance
Advantages Choosing the Right Competitive Advantages Selecting an overall Positioning Strategy
Product Differentiation
i.e.
Features,
Performance, Style, Design or Attributes.
Service Differentiation
i.e.
Delivery,
Installation,
Repair Service,
Customer Training Services.
Image Differentiation
i.e.
Symbols, Atmospheres, Events.
Personnel Differentiation
i.e.
Hiring and training better people than others do.
By
16
Contd
Others think that company should position themselves on more than one differentiator.
e.g. Unilever (Three-in-one bar soap)
vague idea of the brand. Over Positioning:-Buyers may have too narrow an image of the brand. Confused Positioning:- Leaving buyers with a confused image of a company.
Contd
Important
Distinctive
Superior Communicable Preemptive Affordable
Profitable
Value Proposition
The full Positioning of a brand. In simpler words, the full mix of benefits upon which a brand is positioned.
Providing the most upscale product or service and charging a higher price to cover the higher costs. e.g. Mercedes-Benz auto mobiles
Providing a brand offering comparable or even better quality to that of competitor/s upscale one but at a Lower or The Same Price.
Providing equivalent quality products at a Lower Price. It can be a powerful value proposition. e.g. Wall-Mart
Providing lower performance or quality products as required by the consumers at a Much Lower Price.
Providing even better or the best products or services compared to the competitor/s at Lower or the Lowest Prices.
A Positioning Statement summarizes company or brand positioning by targeting the segment, developing a need, delivering the brand name and its concept, and pointing out the competitive advantage or difference.
Keeping a permanent channel to Communicate the desired position to target consumers and taking actions in order to Deliver the position the company wants to build relative to competing products.