Fom - Lecture 5 - Segmentation(2)
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Transcript of Fom - Lecture 5 - Segmentation(2)
8/8/2019 Fom - Lecture 5 - Segmentation(2)
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Segmentation, Targeting,Segmentation, Targeting,and Positioningand Positioning
Chapter 8Chapter 8
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Obj ectives Be able to define the three steps of targetBe able to define the three steps of targetmarketing: market segmentation, targetmarketing: market segmentation, target
marketing, and market positioning.marketing, and market positioning.Understand the major bases for segmentingUnderstand the major bases for segmentingconsumer and business markets.consumer and business markets.Know how companies identify attractive marketKnow how companies identify attractive market
segments and how they choose a targetsegments and how they choose a targetmarketing strategy.marketing strategy.Comprehend how companies position their Comprehend how companies position their products for maximum competitive advantage.products for maximum competitive advantage.
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D efiniti onMarket Segmentation:Market Segmentation:
The process of dividing a marketThe process of dividing a marketinto distinct groups with distinctinto distinct groups with distinctneeds, characteristics,needs, characteristics,or behavior whoor behavior whomight requiremight requireseparate productsseparate productsor marketingor marketingmixes.mixes.
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St eps i n Ma rk e t S egme n tati on, T a rg e ti ng,
a nd Pos iti on ing
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Ma
rk et S
e gm e ntati
on
Segme ntin g Segme ntin g Co nsu mer Co nsu mer Marke tsMarke ts
G eographicalG eographicalsegmentationsegmentation
dividing markets bydividing markets byregion of the countryregion of the countryor world, market size,or world, market size,market density or market density or climate.climate.
Key TopicsKey Topics
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Ma rk e t S e gm e n tati onGe ogr a ph icGe ogr a ph ic
S e gm e n tati on Va r ia bl e sS e gm e n tati on Va r ia bl e sCity or City or Metro SizeMetro Size
NeighborhoodNeighborhoodDensityDensityClimateClimate
World RegionWorld Regionor Countryor Country
U.S. RegionU.S. RegionStateStateCityCity
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G eographical climate isG eographical climate isa legitimate means of a legitimate means of segmentation for manysegmentation for manyproducts or services.products or services.
N ame s everal example s of N ame s everal example s of prod ucts for which n eed prod ucts for which n eed (a n d dema n d) w o u ld vary (a n d dema n d) w o u ld vary o n a geograp hic al ba sis. o n a geograp hic al ba sis.
Di s cu ss ion Que s ti on
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Ma
rk et S
e gm e ntati
on
Segme ntin g Segme ntin g Co nsu mer Co nsu mer Marke tsMarke ts
DemographicDemographicsegmentationsegmentation
Most popular typeMost popular typeDividing a market basedDividing a market basedon demographic variableson demographic variablessuch as; age, gender,such as; age, gender,income, income,income, income,occupation, householdoccupation, householdsize and stage in familysize and stage in familylife cyclelife cycleDemographics are closelyDemographics are closelyrelated to needs, wantsrelated to needs, wantsand usage ratesand usage rates
Key TopicsKey Topics
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Ma rk e t S e gm e n tati onD e mogr a ph icD e mogr a ph ic
S e gm e n tati on Va r ia bl e sS e gm e n tati on Va r ia bl e sAgeAgeG ender G ender
Family sizeFamily sizeFamily life cycleFamily life cycleIncomeIncomeRaceRace
OccupationOccupationEducationEducation
ReligionReligionG enerationG enerationNationalityNationality
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W h a t t ype of demograp hic s egme nt a ti o n is refle ct ed by this ad?
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Ma
rk et S
e gm e ntati
on
Segme ntin g Segme ntin g Co nsu mer Co nsu mer Marke tsMarke ts
P sychographicP sychographicsegmentationsegmentation
Dividing into groupsDividing into groupsthat have similar that have similar lifestyle, sociallifestyle, socialclass, or personalityclass, or personalitycharacteristicscharacteristicsDevelopDeveloppsychologicalpsychologicalprofiles based onprofiles based onAIO and VALSAIO and VALS
Key TopicsKey Topics
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S w a tch t arge ts th o s e with a n a cti ve l i fe st yle
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Ma
rk et S
e gm e ntati
on
Segme ntin g Segme ntin g Co nsu mer Co nsu mer Marke tsMarke ts
BehavioralBehavioralsegmentationsegmentation
Dividing marketsDividing marketsbased onbased onconsumersconsumersknowledge, attitude,knowledge, attitude,use or response touse or response toa producta product
Key TopicsKey Topics
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Ma rk e t S e gm e n tati onBeh a v ior a l Beh a v ior a l
Se gm e n
tation V
ar
iabl e s
Se gm e n
tation V
ar
iabl e s
OccasionsOccasionsBenefitsBenefitsUser StatusUser StatusUser RatesUser Rates
Loyalty StatusLoyalty StatusReadiness StageReadiness StageAttitude TowardAttitude Towardthe P roductthe P roduct
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O cc a si o n s egme nt a ti o n: Al t o i d s¶ ³Love
T in´ is a ³ cu r i o us ly st ro n g vale ntin e ´
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C h e c ko ut Di re ct offer s re t a i ler s &ma nu fa ctu rer s a n ex c elle nt me th od of rea chin g s egme nts of h eavy us er s, a s w ell a s us er s of th e d i re ct c ompe titi o n.
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Ma
rk et S
e gm e ntati
on
Segme ntin g Segme ntin g Co nsu mer Co nsu mer Marke tsMarke ts
Using multipleUsing multiplesegmentationsegmentation
variablesvariablesEg.Eg.G eodemographicsG eodemographicsLeading lifestyleLeading lifestyle
segmentationsegmentationsystem is P rizmsystem is P rizm
Key TopicsKey Topics
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Ma
rk et S
e gm e ntati
on
Segme ntin g Segme ntin g Busin e ss Busin e ss Marke tsMarke ts
Demographic segmentationDemographic segmentationIndustry, company size,Industry, company size,locationlocation
Operating variablesOperating variablesTechnology, usage status,Technology, usage status,customer capabilitiescustomer capabilities
P urchasing approachesP urchasing approachesSituational factorsSituational factors
Urgency, specificUrgency, specificapplication, size of order application, size of order
P ersonal characteristicsP ersonal characteristicsBuyer Buyer- -seller similarity,seller similarity,attitudes toward risk, loyaltyattitudes toward risk, loyalty
Key TopicsKey Topics
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Ma
rk et S
e gm e ntati
on
Segme ntin g Segme ntin g I nt er n a ti o n al I nt er n a ti o n al Marke tsMarke ts
G eographic segmentationG eographic segmentationLocation or regionLocation or region
Economic factorsEconomic factorsP opulation income or level of P opulation income or level of economic developmenteconomic development
P olitical and legal factorsP olitical and legal factorsType / stability of Type / stability of government, monetarygovernment, monetary
regulations, amount of regulations, amount of bureaucracy, etc.bureaucracy, etc.
Cultural factorsCultural factorsLanguage, religion, values,Language, religion, values,attitudes, customs,attitudes, customs,behavioral patternsbehavioral patterns
Key TopicsKey Topics
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Ma
rk et S
e gm e ntati
on
R eq ui reme nts for R eq ui reme nts for Effe cti veEffe cti veSegme nt a ti o nSegme nt a ti o n
MeasurableMeasurableSize, purchasing power, andSize, purchasing power, andprofile of segmentprofile of segment
AccessibleAccessibleCan be reached and servedCan be reached and served
SubstantialSubstantialLarge and profitable enoughLarge and profitable enoughto serveto serve
DifferentiableDifferentiableRespond differentlyRespond differently
ActionableActionableEffective programs can beEffective programs can bedevelopeddeveloped
Key TopicsKey Topics
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T a rg e t Ma rk e ti ng
Evaluating Market SegmentsEvaluating Market SegmentsSegment size and growthSegment size and growthSegment structural attractivenessSegment structural attractiveness
Level of competitionLevel of competition
Substitute productsSubstitute productsP ower of buyersP ower of buyersP owerful suppliersP owerful suppliers
Company objectives and resourcesCompany objectives and resources
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T a rg e t Ma rk e ti ng St r at e g ie s
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Pos iti on ingP ositioning:P ositioning:
The place the productThe place the productoccupies inoccupies inconsumers¶ mindsconsumers¶ mindsrelative to competingrelative to competingproducts.products.Typically defined byTypically defined byconsumers on theconsumers on thebasis of importantbasis of importantattributes.attributes.
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Pos iti on ingChoosing a P ositioning Strategy:Choosing a P ositioning Strategy:
Identifying possible competitiveIdentifying possible competitiveadvantagesadvantages -- -- many potentialmany potentialsources of differentiation exist:sources of differentiation exist:
P roductsP roducts
ServicesServicesChannelsChannelsP eopleP eopleImageImage
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P or sch e is
po siti o n ed o n th e ba sis of
performa nc ea n d freedom .
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Pos iti on ingChoosing a P ositioning Strategy:Choosing a P ositioning Strategy:
Choosing the right competitiveChoosing the right competitiveadvantageadvantage
How many differences to promote?How many differences to promote?Unique selling propositionUnique selling propositionP ositioning errors to avoidP ositioning errors to avoid
Which differences to promote?Which differences to promote?
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Pos iti on ingCr it e r ia for Me a n ing fu l Di ffe re n ce sCr it e r ia for Me a n ing fu l Di ffe re n ce s
ImportantImportant
Superior Superior P reemptiveP reemptive
DistinctiveDistinctive
CommunicableCommunicable
AffordableAffordable
P rofitableP rofitable
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Pos iti on ingChoosing a P ositioning Strategy:Choosing a P ositioning Strategy:
Developing a positioning statementDeveloping a positioning statementP ositioning statements summarize theP ositioning statements summarize thecompany or brand positioningcompany or brand positioningEXAM P LE: ToEXAM P LE: To ( t arge t s egme nt a n d ( t arge t s egme nt a n d n eed)n eed) our our (bra n d)(bra n d) isis ( c o nc ep t )( c o nc ep t ) thatthat(po int (po int- - of of - - d i ffere nc e)d i ffere nc e) ..
Communicating the chosen positionCommunicating the chosen position
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Pos iti on ingChoosing a P ositioning Strategy:Choosing a P ositioning Strategy:
Communicating and delivering theCommunicating and delivering thechosen positionchosen position
Entire marketing mix must support theEntire marketing mix must support thechosen strategychosen strategy
May require changes to the product,May require changes to the product,pricing, distribution or promotion.pricing, distribution or promotion.
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WHAT S NEXT?
LECTURE: P RODUCT/SERVICELECTURE: P RODUCT/SERVICE20% TEST20% TEST ± ± WEDNESDAY JULY 6,WEDNESDAY JULY 6,20052005
ANSWER CASE QUESTIONS ANSWER CASE QUESTIONSGIVENGIVEN
TUTORIAL MONDAY JULY 3, 2005TUTORIAL MONDAY JULY 3, 2005