Post on 22-Jan-2018
MG 220 Marketing ManagementMBA 10
Fall 2010
Muhammad Talha Salam, Asst. Professortalha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 3: Connecting with Customers
> Market Targeting
Part 4: Building Strong Brands
> Overall review of Part 4
> Discussion on Case Studies
> Discussion on Term Project
Class Presentation | Session 12 | 29 Sep 2010
Access it online: www.slideshare.net/talhasalam
Market Targeting
• Marketers job is to identify segments and select which ones to target
• Segments are identified => Now selecting which ones to target
• More and more refinement helps identify smaller, more focused segments and
Better target them
MG 220 Marketing Management 2
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Market TargetingEffective Segmentation Criteria
• Market segments must rate favorably on following criteria:
– Measurable• Size, purchasing power, characteristics can be measured easily
• It should not be vague
– Substantial• Large & profitable enough to serve
• Worth going after with a tailored marketing program/effort
– Accessible• Can be effectively reached and served
– Differentiable• Conceptually distinguishable
• Respond differently to different marketing-mix elements
– Actionable• Effective programs can be formulated for that particular segment
MG 220 Marketing Management 3
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Market TargetingEvaluating and Selecting the Market Segments
• Evaluation process– Based on five criteria (mentioned previously)
– Vis-à-vis two factors:• Segment’s overall attractiveness
• Company’s objectives and resources
– A company must evaluate segments carefully by answering all criteria clearly and ensuring that it is favorable
MG 220 Marketing Management 4
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Market TargetingEvaluating and Selecting the Market Segments
• Selecting Market Segments– Selection is done based on evaluation of market segments
– Five different patterns are used:
1. Single-segment concentration
2. Selective Specialization
3. Product Specialization
4. Market Specialization
5. Full Market coverage
(illustrations ahead are in a grid pattern showing M-Market vs. P-Product)
MG 220 Marketing Management 5
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Market TargetingEvaluating and Selecting the Market Segments
1. Single-segment concentration– Pick only one segment
– Focus on it and achieve leadership and thus
– Have high returns of investment
Downside:
– Too much dependency implies increased risk
Generally:
– Companies tend to operate in more than one segment
– Helps diversify and absorb costs in a better way
– Concept of Supersegments: Segments sharing exploitable similarities: Companies try to operate in supersegments too
MG 220 Marketing Management 6
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Market TargetingEvaluating and Selecting the Market Segments
2. Selective Specialization– Pick different segments having no synergy
– Each is objectively attractive and appropriate
– Different approaches can be:• Different products in different markets (as in fig.)
• Different segments (totally isolated from each other)picked for one product
MG 220 Marketing Management 7
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Market TargetingEvaluating and Selecting the Market Segments
3. Product Specialization– Focus on one product
– Offered across all markets (segments)
– Too much focus on product alone
– What if product is replaced by a betterproduct or technology?
– Example: Kodak’s camera films
MG 220 Marketing Management 8
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Market TargetingEvaluating and Selecting the Market Segments
4. Market Specialization– Focus on one market
– Focus is on serving as many needs of that market
– Again, too much dependency on one area
– What if this market is not able to grow?
– Example: Institutes too much focused onaccounting market (CA, ACCA, CAT etc.) Had to diversify into finance programs (CFA, CISA)
MG 220 Marketing Management 9
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Market TargetingEvaluating and Selecting the Market Segments
5. Full Market Coverage– Serve all customer segments for all their needs
– Very hard to do. Generally large firms can do it only• E.g. Microsoft (software market)
– Two broad strategies/approaches:• Undifferentiated Marketing: Firm ignores segment
differences and offers one product to all
Coke’s 300 ml bottle example applies here
• Differentiated Marketing: Different products fordifferent segments – still covering all segments
Microsoft targeting different segments in software market differently
MG 220 Marketing Management 10
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Market TargetingEvaluating and Selecting the Market Segments
Managing Multiple Segments
• Using segment managers
• Each is responsible for growth and profitability of own segments
Differentiated Marketing Costs
• In differentiated marketing (targeting different segments with different products), higher sales are possible than undifferentiated marketing but costs are also increased.– Product modification costs
– Manufacturing costs
– Administrative costs
– Inventory costs
– Promotion costs
• Marketers need to understand the trade-off and be cautious of segmentation (particularly over-segmentation)
MG 220 Marketing Management 11
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Market TargetingAdditional Considerations
Segment-by-Segment invasion plans
• Recommended: enter one segment at a time
• Add more with time
• Segment-by-segment invasion plans should be kept as confidential as possible
• Companies at times fail todevelop these plans
• How to enter blocked markets:Concept of megamarketing
MG 220 Marketing Management 12
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Market TargetingAdditional Considerations
Updating Segmentation schemes
• Market segmentation analysis should be done periodically because business environment change
• How consumer attributes change and understanding of it helps update market segmentation
Ethical choice of market targets
• Ensuring that marketing efforts are not exploiting vulnerable groups in society
• OR promoting harmful products
MG 220 Marketing Management 13
MG 220 Marketing ManagementMBA 10
Fall 2010
Muhammad Talha Salam, Asst. Professortalha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 4: Building Strong Brands
> Overall review: Part 4
Class Presentation | Session 13 | 29 Sep 2010
Access it online: www.slideshare.net/talhasalam
Part 4: Building Strong Brands
Chap 9: Creating Brand EquityWhat is Brand Equity?Building Brand EquityMeasuring Brand EquityManaging Brand EquityDevising a Branding Strategy
Chap 10: Crafting the Brand PositioningDeveloping and Creating a Positioning StrategyDifferentiation StrategiesProduct Life-cycle marketing strategiesMarket Evolution
Chap 11: Dealing with CompetitionCompetitive forcesIdentifying CompetitorsAnalyzing CompetitorsCompetitive Strategies for Market LeadersOther Competitive StrategiesBalancing Customer and Competitor Orientations
MG 220 Marketing Management 15
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Discussion on Assignment/Case Studies
Assignment-I grading 3%
Re-formatting and re-submittal required
Individuals to discuss assignments on Saturday, Sep 30, 2010
7 x Case Studies to be covered
As assignments (1% each)Each case study to be read in depth
Analyzed
Key points noted
Solutions and options to problems identified
Research may be involved if so required
Assignment-II & III grading 2% + 3%
MG 220 Marketing Management 16
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Discussion on Term Project
Team Project 10%Teams of 2-3 individuals each
Project Report
Team Presentation (15 mins)
6-weeks project beginning Oct 5,2010
4 x deliverables | 1 x presentation
Options:
Case Study (practices in market)
OR
Marketing Plan (new product – complete feasibility and detailed marketing plan)
MG 220 Marketing Management 17
MG 220 Marketing ManagementMBA 10
Fall 2010
Muhammad Talha Salam, Asst. Professortalha.salam@nu.edu.pk
Access it online: www.slideshare.net/talhasalam
Part 4: Building Strong Brands
> What is Brand Equity?
> Building Brand Equity
> Measuring Brand Equity
> Managing Brand Equity
Class Presentation | Session 14 | 5 Oct 2010