Sultan Ahmed Topic 05. Sultan Ahmed You would be able to answer the following questions after...
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Transcript of Sultan Ahmed Topic 05. Sultan Ahmed You would be able to answer the following questions after...
Sultan Ahmed www.studyandjobs24.com •1
Topic 05
Sultan Ahmed www.studyandjobs24.com •2
You would be able to answer the following questions after reading the chapter:
Definitions: segment marketing, customerization, • What are the different levels/steps of market
segmentation?• In what ways can a company divide a market into
segments?• Explain the characteristics of demographic
segmentation with examples.• Explain the characteristics of behavioral segmentation
with examples.• What are the requirements for effective segmentation?• How should business markets be segmented?• How should a company choose the most attractive
target markets? How market coverage strategies influence market targeting?
Learning Goals of the Topic
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Effective Targeting Requires…
• Identify and profile distinct groups of buyers who differ in their needs and preferences.
• Select one or more market segments to enter.
• Establish and communicate the distinctive benefits of the market offering.
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Steps in Market Segmentation, Targeting, and Positioning
Market Segmentation
1. Identify bases for segmenting the market2. Develop segment profiles
Market Segmentation
1. Identify bases for segmenting the market2. Develop segment profiles
Market Targeting3. Develop measure of segment attractiveness4. Select target segments
Market Targeting3. Develop measure of segment attractiveness4. Select target segments
Market positioning5. Develop positioning for target segments6. Develop a marketing mix for each segment
Market positioning5. Develop positioning for target segments6. Develop a marketing mix for each segment
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Four levels of Micromarketing
Segments
Local areas Individuals
Niches
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Segment Marketing
Targeting a group of customerswho share a similar set of
needs and wants.
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Basic Market Preference Patterns
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Customerization
Combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.
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Segmenting Consumer Markets
GeographicGeographic
DemographicDemographic
PsychographicPsychographic
BehavioralBehavioral
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Demographic Segmentation
Age and Life CycleAge and Life Cycle
Life StageLife Stage
GenderGender
IncomeIncome
GenerationGeneration
Social ClassSocial Class
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Behavioral Segmentation
Decision Roles
• Initiator
• Influencer
• Decider
• Buyer
• User
Behavioral Variables
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude
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Behavioral Segmentation Breakdown
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Segmenting for Business Markets
DemographicDemographic
Operating VariableOperating Variable
Purchasing ApproachesPurchasing Approaches
Situational FactorsSituational Factors
PersonalCharacteristics
PersonalCharacteristics
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Segmenting for Business Markets
• Demographic segmentation– Industry, company size,
location• Operating variables
– Technology, usage status, customer capabilities
• Purchasing approaches• Situational factors
– Urgency, specific application, size of order
• Personal characteristics– Buyer-seller similarity,
attitudes toward risk, loyalty
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• Size, purchasing power, profiles of segments can be measured.
• Segments can be effectively reached and served.
• Segments are large or profitable enough to serve.
Measurable Measurable
AccessibleAccessible
SubstantialSubstantial
DifferentialDifferential
ActionableActionable
• Segments must respond differently to different marketing mix elements & programs.• Effective programs can be designed to attract and serve the segments.
Effective Segmentation Criteria
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Market Targeting Evaluating Market Segments
• Segment Size and Growth– Analyze current sales, growth rates and
expected profitability for various segments.• Segment Structural Attractiveness
– Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers.
• Company Objectives and Resources– Company skills & resources needed to succeed
in that segment(s).– Look for Competitive Advantages.
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Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
Segment 1Segment 1
Segment 2Segment 2
Segment 3Segment 3
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing
Mix
CompanyMarketing Mix 1
CompanyMarketing Mix 1
CompanyMarketing Mix 2
CompanyMarketing Mix 2
CompanyMarketing Mix 3
CompanyMarketing Mix 3
MarketMarket
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
Market Targeting Market Coverage Strategies
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Patterns of Target Market Selection
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Patterns of Target Market Selection
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Patterns of Target Market Selection