Marketing and Market Segmentation

2

Getting to Strategy

Where are theopportunities? Vision Strategy

Environmentalconditions

Competitoractivity

YOUwhy are you doing this?what do you have to offer?your values

Customers wantsneeds & values

Competitive Advantage

Plan

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

3

The Concept of Marketing

The outside in approach to arriving at strategy

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

Market orientation – asking what the customer wants and delivering it (at a profit)

Customer focus rather than self focus.

Marketing definitions:

4

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

5

“In business markets, almost every customer needs a customized product, quantity, or price. In fact, each segment effectively consists of one customer”

Das Narayandas “Building Loyalty in Business Markets”

Gary Hamel (London Business School)Deciding what a future market will look like and then stretching your firms skills so that it can take advantage of that market

Design

InvestorOwn / lease

TimeCost

QualityRisk taker

Existing building

New buildingUser

Home owner

Developer

Risk adverse

Customer Differentiation

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

7

Thinking about specialisationMarket segmentation

Market Niches

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

Major divisions of the market into groupings of customers that require significantly different products or serviceseg cars - cheap cars

medium size carsluxury vehicles

Market Segmentation

8

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

Property DevelopmentQuantity surveying servicesConstruction Contractors

Take one of the following markets and describe how they are segmented?

9

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

Kids bikesCommuter bikesRoad racing bikesMountain bikes

- general use- racing- freestyle- downhill

Corner pictures

Market niches

10

Division of the market into small groups that have needs that Division of the market into small groups that have needs that can be better serviced by specialising in satisfying those can be better serviced by specialising in satisfying those needsneeds

11

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

New buildings marketOther types of construction services

Describe some market niches in:

12

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT

Exercise 4

>>DEPARTMENT of CONSTRUCTION