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Module: Strategic Marketing
Instructor: Bilal Ahmad

LECTURE: Strategic market

Powerpoint Templates

Powerpoint Templates

preferences and purchase behavior • Formation of market segments • Customer group identification • Forming group base on Response differences Powerpoint Templates • Finer segmentation strategies .Learning Outcomes • Identification of Market segments • Buyer’s needs.

• Selecting the segmentation strategy • Strategic analysis of market segments Powerpoint Templates .

• Identifying market segments – Segmentation variables – Characteristics of people and organizations • Consumer markets • Organizational markets • Product use situation segmentation • Buyers’ needs and preferences – Consumer needs – Attitudes – Perceptions • Purchase behaviour Powerpoint Templates .

2005: 373) Purchase Use Buyers’ Needs/Preferences Characteristics of People/ Behavior Situation Organizations Powerpoint Templates .Identification of Market segments • Segmentation variables – Segmentation and targeting of customers allows the marketer to deliver a product within the target audience needs and wants (Pickton and Broderick.

producer/ lifestyle intermediary Use situation Occasion. organizations stage. service a deal requirements Purchase Size of purchase. development. stage of location. brand preferences. straight user status rebuy Buyers’ needs/ Brand loyalty status. desired quality. preferences preference. prior Procedure (new task. purchasing purchase. income. modified rebuy. proneness to make features. size. brand Performance requirements. gender. lifecycle geographic location. Illustrative Segmentation Variables Consumer Organizational Markets Markets Characteristics Age. benefits sought. geographic corporate culture. Volume. experience with product. frequency behavior frequency of purchase of purchase Powerpoint Templates . of people/ family size. Type of industry. importance of Application.

Product use situation segmentation • Definition – Market segmentation based on use of product – Needs and Preferences vary according to different use situations • Mass customization Powerpoint Templates .

Product use situation segmentation • Example: • Astra/Merck segmentation based on. – Health care as business • Care administrator – Traditional • Physicians with standard patient needs – Cost sensitive • Physicians for whom cost is paramount – Medical though leaders • People on leading edge Powerpoint Templates .

Buyer's needs and Prefrences – Needs and preferences • Specific to product • Specific to brand • Used as segmentation bases • Used as segmentation descriptors – Customer needs – Attitude – Perceptions Powerpoint Templates .

Buyer's needs and Prefrences • Customer needs – Basic physiological needs – Nature and intensity of needs – Better solution (Filling the gap) • Attitudes – Attitude influence behavior – Marketing strategy development Powerpoint Templates .

1964) – Evaluation of Positioning strategy – Strategic management of Positioning strategy Powerpoint Templates . and interprets information inputs to create a meaningful picture of the world. organize. “Human behavior”. (Bernard and Gary.Buyer's needs and Prefrences • Perception – Process by which an individual selects.

Buyer's needs and Prefrences • Purchase behavior – Consumption variables – Volume of purchase – CRM system – Loyalty Program Powerpoint Templates .

Buyer's needs and Prefrences • Purchase behavior Powerpoint Templates .

g. E. toothbrush E.g. tea. Face wash.. Car. Forming Market segments • Levels of involvement Moderate Low involvement High Involvement involvement Habitual Decisions Simple decisions Lengthy decisions E.g. University snacks Powerpoint Templates .

Forming market segments – Requirements for segmentation • Response differences • Identifiable segments • Actionable segments • Cost/benefits • Stability – Approaches to segment identification – Customer group identification – Forming groups based on response differences Powerpoint Templates .

Forming market segments • Example • Miller genuine draft – – “mainstream sophisticates” • Milwaukee’s Best Light – – “hardworking men” • Pilsner Urquell – – “beer afficionados” • Miller Icehouse – – for “drinking buddies” Powerpoint Templates .

Beer market demographics Powerpoint Templates .

Requirements for segmentations • Response differences • Identifiable segments • Actionable segments • Cost/benefits of segmentation • Stability over time • Product Differentiation and market segmentation Powerpoint Templates .

Approaches to segment identification Segment identification A-Start with B-Start with identifiers of customer customer group response profile Powerpoint Templates .

Customer group identifiaction • Management insight and available information • Cross classification analysis • Data Mining for segmentation • Segmentation illustrations Powerpoint Templates .

Forming group based on response differences • Customer relationship management (CRM) – Cluster analysis – Perceptual maps • Product market area • Competitor analysis • Buyer’s perception analysis • Map preparation Powerpoint Templates .

Finer segmentation strategies – Logic • Customized offerings • Diverse customer base • Close customer relationships – Finer segmentation strategies • Micro-segmentation • Mass customization • Variety-seeking strategy Powerpoint Templates .

Selecting the segmentation strategy – Deciding how to segment – Strategic analysis of market segments • Customer analysis • Competitor analysis • Positioning analysis • Estimating segment attractiveness • Segmentation “fit” and implementation Powerpoint Templates .

Strategic vision about future • Anticipating the future – Boundaries and composition of Product market – End-user customer base – Market and industry transformation – Potential threats – Value chain composition and structure – Product life cycle phase? Powerpoint Templates .