Chapter 3: Focusing Marketing Strategy with Segmentation andPositioning
When you finish this chapter, you should
3-2
Chapter 3 Objectives
1. Understand why marketing strategy planning involves a process of narrowing down from broad opportunities to a specific target market and marketing mix.
2. Know about the different kinds of marketing opportunities.
3. Understand why opportunities in international markets should be considered.
4. Know about defining generic markets and product-markets.
5. Know what marketing segmentation is and how to segment product-markets into submarkets.6. Know three approaches to market-oriented strategyplanning.7. Know dimensions that may be useful for segmenting markets. 8. Know what positioning is— and why it is useful.10. Understand the important new terms.
Exhibit 3-13-3
Marketing Strategy Planning Process
Customers
Company
Competitors
S.W.O.T.
Segmentation& Targeting
Differentiation& Positioning
Product Place
PromoPrice
Narrowing down to focused strategy with screening criteria
External Market Environment
TargetMarket
MarketPenetration
MarketDevelopment
ProductDevelopment
Diversification
Present Products New Products
Four Basic Types of Opportunities
Present Markets
New Markets
Exhibit 3-2
3-4
Types of Opportunities
Better
Tre
nds?
Smal
ler W
orld C
ompetitive
Advantage
Early Start
3-5
Considering International Opportunities
Exhibit 3-3
Combined target market
approach
Single target market
approach
Multiple target market
approach
Allcustomer
needs
Somegenericneeds
Onebroad
productmarket
Homogeneous(narrow) product markets
Narrowing down tospecific product-market
Segmentinginto possible
target markets
Selectingtarget
marketingapproach
3-6
Narrowing Target Markets
Exhibit 3-4
3-7
Generic and Product-Market Definitions
GenericMarket
Definitions
GenericMarket
Definitions
Product-Market
Definitions
Product-Market
Definitions
Customer(user) needs
Customer(user) needs
Customertypes
Customertypes
Geographicarea
Geographicarea
Product type(good and/or service)
Product type(good and/or service)+ + +
Submarket 1(Exercisers)
Submarket 2(Off-road
adventurers)
Submarket 3(Transportation riders)
Submarket 4(Socializers)
Submarket 5(Environmentalists)
Broad product-market (or generic market) name goes here(The bicycle-riders product-market)
Exhibit 3-5
3-8
Market Segmentation
Market Segmentation
Exhibit 3-6
3-9
Sta
tus
dim
ensi
on
Dependability dimension
A. Product-market showingthree segments
Sta
tus
dim
ensi
on
Dependability dimension
B. Product-market showingsix segments
Using single target market approach— can aim at one submarket with one marketing mix
TheStrategy
A segmenter
Exhibit 3-7
3-10
Market-Oriented Approaches
Using multiple target market approach— can aim at two or more submarkets with different marketing mixes
StrategyThree
StrategyTwo
StrategyOne
A segmenterMarket-Oriented Approaches
Exhibit 3-7
3-11
TheStrategy
Using combined target market approach—can aim at two or more submarkets with the same marketing mix
A combiner
Exhibit 3-7
3-12
Market-Oriented Approaches
All Potential DimensionsAll Potential Dimensions
Qualifying DimensionsQualifying Dimensions
Determining Dimensions(Product Type)
Determining Dimensions(Product Type)
Determining Dimensions(Brand Specific)
Determining Dimensions(Brand Specific)
Relevant Purchase Behavior
Relevant Customer Type
Specific Purchase Influence
Attraction to Brand
Focus:
Focus:
Focus:
Focus :
Exhibit 3-12
3-13
Segmentation Dimensions
“Product Space” Representing Consumers’ Perception for Different Brands of Bar Soap
Nondeodorant Deodorant
High moisturizing
Low moisturizing
1
24
5
7
8
6
3
• Zest
• Lever 2000
• Safeguard
• Dial• Lifebuoy
• Lava
• Lux
• Dove
• Tone
Positioning of Different Bar Soaps
Exhibit 3-13
3-14
SegmentingMarket SegmentSingle Target ApproachMultiple Target ApproachCombined Target Approach Combiners SegmentersQualifying DimensionsDetermining DimensionsClustering TechniquesPositioning
Breakthrough OpportunitiesCompetitive AdvantageDifferentiationS.W.O.T. AnalysisMarket PenetrationMarket DevelopmentProduct DevelopmentDiversificationMarketGeneric MarketProduct-MarketMarket Segmentation
Key Terms
3-15
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