Strategic Marketing EBMA 3715 Unit 4 (Chapter 4) PART 2

SEMESTER TEST 1 DATE: 25 FEBRUARY 2015 TIME: 5,6TH PERIOD 11:10 – 13:00 VENUES: A – Z, EXR 6 WORK: Unit 1-5 MARKS: 50 TIME: 90 Minutes FORMAT: Case study with application

questions- Thus, you must know the theory very well!

1. Know your

THEORY-Learning outcomes

2. Can you APPLY-Review class activities

3. PRACTICE Case Studies. Read and Think FAST

Segment Target Position

Assignment for Unit 4: GROUPCreate an idea for a new TV show and present it in class. The following must be included in your presentation:

• A description of your target market(s)• The target marketing approach &

motivation.• The TV show’s competitive advantage &

motivation.• The TV show’s position in the market &

motivation • Describe which positioning method you used

& motivation.

MARKET SEGMENTATION, TARGETING AND POSITIONINGCHAPTER 4

• Dividing consumer markets into various groups with similar needs and wants.

Segmentation

• Deciding which market segment’s needs can be satisfied by the company.

Targeting

• Creating an image of the product or brand in the mind of the consumer

Positioning

P.G. 78

SEGMENTING

BENEFITS VS. DISADVANTAGES OF SEGMENTATION (PG. 78)

Accuracy of customer needs

Identify new opportunities

Guidelines for development of separate market offerings and strategies segments

Allocation of marketing resources

Very expensive

Limited market coverage

Cannibalisation

BENEFITS DISADVANTAGES

PREREQUISITES FOR MARKET SEGMENTATION {page 79 & 98}

Measurable • Who is in

segment

Identifiable• How

many potential customers

Accessible• Reach

target market

Substantial• Worthwhil

e serving

Meaningful• Needs

BEHAVIOURALVariables such as usage rate and patterns,

price sensitivity, brand loyalty and benefits sought.

PSYCHOGRAPHICVariables such as values, attitudes

and lifestyle

DEMOGRAPHICVariables such as age, gender, ethnicity, education,

occupation, income and family status.

GEOGRAPHICRegional variables such as region, climate,

population density and population growth rate.

Bases for segmentation

GEOGRAPHIC

DEMOGRAPHICS Age Gender Income Family life cycle stage Ethnicity Any combination of these factors

Not limited to these factors, other: income, occupation, lifestyle, living standards (LMS)

DEMOGRAPHIC FACTORS

LivingStandardsMeasurement:

A tool has been developed by SAARF (South African Advertising Research Foundation) to aid marketers

in SOUTH AFRICA

It measures social class, or living standards, regardless of race and without using income as a

variable to segment the market

% of SA adult population0

2

4

6

8

10

12

14

16

LSM 1LSM 2LSM 3LSM 4LSM 5LSM 6LSM 7LSM 8LSM 9LSM 10

LSM = Living Standards Measurement

Summary Of New LSM® Groups

LSM 1 (1.4%) DEMOGRAPHICSMale and female50+Primary CompletedSmall urban/ RuralTraditional Hut

R1 480 ave household income per month

MEDIARadio a major channel of media communication; mainly African Language Services (ALS)- Umhlobo Wenene FM, Ukhozi FM and community

GENERALMinimal access to servicesMinimal ownership of durables, except radio setsMzansi bank accountActivities: minimal participation in activities, singing

LSM 2 (3.6%) DEMOGRAPHICSMale and Female15–24, 35-49 and 50+Some High SchoolSmall urban/ RuralSquatter Hut Shack, Matchbox and Traditional Hut


MEDIARadio: Commercial, mainly ALS-Ukhozi FM, Umhlobo Wenene FM

GENERALCommunal access to waterMinimal ownership of durables,except radio sets and stovesMzansi bank accountActivities: minimal participation in activities, singing, attend burial society meetings and traditional gatherings

AMPS 2013 Jul’12-Jun’13


LSM 5 (16.9%)DEMOGRAPHICSMale and Female with female bias15-34Some High SchoolSmall urban/ ruralHouse, matchbox/ matchbox improved


MEDIARadio: Commercial mainly ALS stations, Lesedi FM, Motsweding FM, Ukhozi FM, community radioTV: SABC 1,2,3, e.tv, Top TV

GENERALElectricity, water on plot, flush toilet outsideTV sets, hi-fi/radio set, stove, fridgeMzansi accountsActivities: singing, bake for pleasure, go to night clubs, attend gatherings, buy lottery tickets

LSM 6 (23.8%)DEMOGRAPHICSMale and Female15-49MatricLarge UrbanHouse/ townhouse, cluster house


MEDIAWide range of commercial and community radioTV: SABC 1,2,3, e.tv, Top TV, Community TVAny AMPS NewspaperOutdoor

GENERALElectricity, water in home, flush toilet in homeTV set, stove, fridge/freezer, microwave ovenSavings and Mzansi accountsActivities: hire DVDs, go to night clubs, take away in the past 4 weeks, attend gatherings, buy lottery tickets, go to gym


LSM 9 LOW (4.9%) DEMOGRAPHICSMale35+Matric and higherUrban


MEDIAWide range of commercial and community radioTV: SABC 2,3, e.tv, M-Net, DStv, Top TV, Community TVAccessed internet past 7 daysAll printCinema & Outdoor

GENERALFull access to services and bank accountsFull ownership of durablesIncreased participation in activities, excluding stokvel meetings

LSM 9 HIGH (4.9%) DEMOGRAPHICSMale35+Matric and higherUrban


MEDIAWide range of commercial radioTV: SABC 2,3, e.tv, M-Net, DStv, Top TV, Community TVAccessed internet past 7 daysAll printCinema & Outdoor



LSM 10 LOW (3.4%) DEMOGRAPHICSMale and Female with a male bias35+ Matric and higherUrban


MEDIAWide range of commercial radioTV: SABC 3, M-Net, DStv, Top TV, Community

TVAll printAccessed internet past 7 daysCinema & Outdoor

GENERALFull access to services and bank accountsFull ownership of durablesIncreased participation in activities, excluding stokvelmeetings

LSM 10 HIGH (2.7%) DEMOGRAPHICSMale35+ Matric and higherUrban


MEDIAWide range of commercial radioTV: M-Net, DStv, Top TV, Community TVAll printAccessed internet past 7 daysCinema & Outdoor


Mpumalanga

Eastern Cape

Free State

Gauteng

KwaZulu-Natal

Northern Cape

North West

Western Cape

Limpopo

Lsm 1- 4Lsm 5Lsm 6Lsm 7Lsm 8Lsm 9Lsm 10

% of Province that is RuralMore than 60 %

31 to 60 %11 to 30 %

up to 10 %

SAARF Universal LSM® By Province

GEODEMOGRAPHICS Clustering potential customers living in

proximity who display similar demographical characteristics

PSYCHOGRAPHIC

BEHAVIOURALPurchase occasions: regular vs. special occasionBenefit sought: Benefit consumer seek- emotional or economicalUser status: Non-users, ex-users, potential users or regular usersUsage rate: FrequencyLoyalty status: loyalty towards the organisation or its brand namesBuyer readiness stage: Customer’s readiness to buy.Attitude towards the product: Negative vs. positive

DEVELOP SEGMENT PROFILES

Kona-Q : fast-casual niche of the restaurant industryCompete against fast food as well as more traditional sit down restaurants.TARGET MARKET SEGMENT STRATEGYKona-Q focus on 1. families and 2. individuals. Most dinner service is for families.•As more households become two income families, the adults have less time to prepare meals. Going out to dinner eliminates the need to prepare a meal and offers time to catch up with each other.•The lunch business is driven by individuals. Many go out to lunch to get out of the work setting. Others have business meetings at lunch. This creates a large market of potential customers that is especially attractive.Families: forecasted to contribute 67% of the dinner time revenue.•Have 2.4 children•>$50K in household income•67% have an undergraduate degree•26% have graduate level coursework•Go out to eat 1.6 times a week•Dinners out are used as a meal replacement since neither parent has time to cook a meal at home•Sophisticated families that live within three miles of the siteIndividuals: comprise 69% of the lunch time revenue.•Ages 19-47•Individual income average is $36,000•72% of the individuals over 23 have an undergraduate education•Eat out 2.3 times a week•Young professionals that live near the location•Shoppers who patronize the nearby high rent stores

MARKET TARGETING

Evaluate Potential Target Markets (pg. 100)

Step 1: Deciding on appropriate evaluation criteria

Step 2: Weighting factors to reflect their importance

Step 3: Assessing current position of each target market

Step 4: Projecting the future position of each target market

Step 5: Evaluating implications of possible future changes

Step 1: Deciding on appropriate evaluation criteria

Market Attractiveness Competitive Attractiveness

Market/customer factors Market position factors

Economic and technological factors

Economic and technological factors

Competitive factors Capabilities of organisation

Environmental factors Synergy with other segments

Step 3: Assessing current position of each target market

Market attractiven

ess

Competitive position

Step 4: Projecting the future position of each target market

Step 5: Evaluating implications of possible future changes

Undifferentiated

Differentiated

Concentrated Niche

Mass customisati

on

UNDIFFERENTIATED

DIFFERENTIATEDNews24

Nuus24

Sport24

Weather 24

Ancestry24

Careers24

Food24 Fin24

GoTravel24

Health24

Property24

Wheels24

Women24

Parent24

http://www.news24.com/

http://www.parent24.com/

http://www.nuus24.com/

http://www.nuus24.com/

http://www.sport24.co.za/

http://www.sport24.co.za/

http://www.health24.com/

http://www.health24.com/

http://www.wheels24.co.za/

http://www.women24.com/





CONCENTRATED

POSITIONING

DEFINITION OF POSITIONING (PG. 106)

Refers to the way consumers perceive a product in terms of its characteristics and advantages

and its competitive position.

It therefore involves the creation, in the minds of targeted buyers, of a distinctive position with regard

to the organisation’s product relative to those of competing organisations.

CHARACTERISTICS THAT CONSUMERS

MIGHT SEEK?

CHARACTERISTICS Cavity/Decay

Prevention White/Bright Teeth Fresh Breath Tartar Control Plaque Reduction Stain Remover Gum Disease

Prevention

Flavour/Great Taste Fun for Kids No Mess - pump, neat-

squeeze Sensitive Teeth:

Sensodine All-in-One: Aquafresh Low Price: shop

brands, brands on sale

EXAMPLE OF POSITIONING MAP

Brand B Brand C

High tooth decay prevention

Low tooth decay prevention

Low plaque fighting

High plaque fighting

Brand A

Attribute

positioning Benefit

positioningUse/

application

positioningUser

positioning

Competitor

positioning

Product

category

positioning

Quality/ price

positioning

ATTRIBUTE

BENEFIT

COMPETITOR

PRODUCT CATEGORY

COMMON POSITIONING ERRORS

Under-positioning

Over-positioningConfused

positioningDoubtful

positioning

Marketers often need to reposition their brands or products as the market develops, competitors enter or exit, and customers’ expectations and needs change.

Repositioning

Gradual

Radical

Innovative

Zero

Segment Target Position

Assignment for Unit 4: GROUPCreate an idea for a new TV show and present it in class. The following must be included in your presentation:

• A description of your target market(s)• The target marketing approach & motivation• The TV show’s competitive advantage &

motivation• The TV show’s position in the market &

motivation and describe which positioning method you used & motivation.

Test 1 DATE: 25 FEBRUARY 2015 TIME: 5,6TH PERIOD 11:10 – 13:00 VENUES: A – Z, EXR 6 WORK: Unit 1-5 MARKS: 50 TIME: 90 Minutes FORMAT: Case study with application

questions- Thus, you must know the theory very well!

Strategic Marketing EBMA 3715 Unit 4 (Chapter 4) PART 2

Education

Transcript of Strategic Marketing EBMA 3715 Unit 4 (Chapter 4) PART 2