Focusing Marketing Strategy with Segmentation and Positioning

At the end of this presentation, you should be able to:
1.Know about defining generic markets and product-markets. 2.Know what market segmentation is and how to segment product-markets into submarkets. 3.Know three approaches to market-oriented strategy planning. 4.Know dimensions that may be useful for segmenting markets. 5.Know a seven-step approach to market segmentation that you can do yourself. 6.Know what positioning is and why it is useful. 7.

Focusing Marketing Strategy with Segmentation and Positioning (Exhibit 4-1)

Focusing Marketing Strategy with Segmentation and Positioning

Segmentation •Defining markets •Dimensions to use •Identifying segments •Identifying segments to target •Segmentation approaches

Positioning •Understanding customer’s view •Positioning techniques •Evaluating segment preferences •Differentiating the marketing mix •Relationship between positioning & targeting

Taking Advantage of Opportunities .

Naming Product Markets and Generic Markets Product Product Type Type ProductProductMarket Market Definition Definition Customer Needs Customer Needs Geographic Area Geographic Area Customer Type Customer Type No Product Type in Generic Market Definition .

What Is the Product-Market? .

Segmenting markets and selectin 2.Segmentation is a Two-Step Process Naming broad product-markets Naming broad product-markets and 2. Segmenting markets and selectin .

The Process of Narrowing Down to Target Markets All customer needs Narrowing down to specific product-market Homogeneous (narrow) product-markets Segmenting into possible target markets Selecting target marketing approach Single target market target markets target markets Multiple Combined .

Market Segmentation Defines Possible Target Markets Broad product-market (or generic market) name goes here (The bicycle-riders product-market) Submarket 1 (Exercisers) Submarket 2 (Off-road adventurers) Submarket 3 (Transportation riders) Submarket 4 (Socializers) Submarket 5 (Environmentalists) .

How Far Should the Aggregating Go? B. A. Product-market showing six segments threesegments Status dimension Dependability dimension .

Segmenters and Combiners Aim at Specific Target Markets A segmenter develops a different marketing mix for each segment. The strategy . Single target market approach The Strategy Multiple target market approach Strategy two Strategy one Strategy three A combiner aims at two or more submarkets with the same marketing mix.

Combining Too Much Combining Is Risky Segmenters Try to Satisfy “Very ers Try to Satisfy “Pretty Well” Key Key Issues Issues fit Is the Balancing Point Segmenting May Produce Bigger Segment or Combine? .Segmenting vs.

Behavioral dimensions for segmenting consumer markets Information required Information required Needs Needs Benefits Sought Benefits Sought ype of problem-solving ype of problem-solving Kind of shopping Kind of shopping Behavior Behavior al al Segmenti Segmenti ng ng Dimensio Dimensio ns ns Thoughts Thoughts Rate of use Rate of use Brand familiarityPurchase relationship Brand familiarityPurchase relationship .

.Ball Park franks appeal to this segment with older. attractive models and products addressing concerns about health and fat.

.Haagen Dazs projects an elegant. indulgent. and special personality in this ad.

Geographic dimensions for segmenting consumer markets Region of world or country Region in a country Region of world or country Region in a country Geographi Geographi c c Segmentati Segmentati on on Dimension Dimension s s Size of city Size of city .

Demographic dimensions for segmenting consumer markets Income Income Gender or age Gender or age ographic Segmentation Dimensions ographic Segmentation Dimensions Family size or family life cycle stag Family size or family life cycle stag Occupation or education Occupation or education Ethnicity or social class Ethnicity or social class .

Income .

Soft & Beautiful. recognizes the many roles of women in its ads. a hair care products company. .

frozen chicken strips. .” pre-cut. to appeal to busy women and mothers.Tyson chicken developed “Tyson TimeTrimmers.

Computer manufacturers have created computers to appeal to girls and boys. .

Crayola introduced a new crayon which is washable and can be removed from a variety of surfaces. .

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Segmenting business markets Kind of relationship Kind of relationship Type of customer Type of customer Segmenting Dimensions for Business Markets Segmenting Dimensions for Business Markets Demographics Purchasing methods Demographics Purchasing methods Type of buying situation customers will use the product How Type of buying situation customers will use the produc How .

Business-toBusiness Segmentation .

What Dimensions are used to Segment Markets? Qualifying Qualifying Dimensions Dimensions •Relevant to including a customer type in a product-market •Help identify “core benefits” Determining Determining Dimensions Dimensions •Affect the customer’s purchase of a product or brand •Can be further segmented OR .

Qualifying Dimensions ng Dimensions May Be Very SpecificDetermining Dimensions May Ch ng Dimensions May Be Very SpecificDetermining Dimensions May C Key Issues Key Issues imensions For Different Submarkets Dimensions For Different Submarkets Qualifying Dimensions Are Import Qualifying Dimensions Are Import .Determining vs.

Ethical Issues in Segmenting Markets Ethical Ethical Issues Issues Exploitation Exploitation Internati Internati onal onal Issues Issues Creates Unnecessary Wants Creates Unnecessary Wants Does Harm Does Harm .

What Are the Relevant Segmenting Dimensions? .

Psychographic Segmentation .

1 1 m a n (e tS c e h te )l e d a o rc b m a n ( t e h t ) e d a o r b c u d o rp p k rd a m -o tr tu e c k r a m t t e Segmenting Product Markets Best Best Practice Practice Approach Approach for for Segmenting Segmenting ProductProductMarkets Markets . .2 2 o p y fe id tI lf a ii tt n e tn o p y l a i t n e t m o tc s u c e e n ru e s d m o t s e e n r e s d e l.m iE t.3 3 a im tr io n iF li a i t i n l g o m o h u o e n e s g o m o h u o e n e s a m b u s s tu e k rs a m b s t e k r n e d I.6 6 p e tE a u ta c u d o rv e k ru a m -l ta p e t t c u d o r e k r a m t e m g e s s ts n e m g e s t n m a N . s E . m a s s o p e e l b i c u d o rp p k rd a m -o tr s tu e c k r a m t s t e n e d I.4 4 e d y fe id tI if n ii m rt e tn g n e d y i n i m r e t g n s n e m id d s n o ii s n e m s n o i m r. .7 7 s e ts a e fi o e z it h c a m s e t a e f o e z i h c a c u d o rp p k rd a m -o tr g e s tu e s tc n e m k r a m t g e s t e s t n e m l. e S . a v E .5 5 s s o p e e lN b i. o F .

More Sophisticated Techniques May Help in Segmenting Clustering Clustering Customer Database Customer Database Customer Relationship Management (CRM Customer Relationship Management (CRM .

Cluster Analysis .

. quattro.Positioning Sticks like Sticks like quattro.

“Product Space” Representation of Positioning High moisturizing Tone Dove 5 Lux Coast 8 2 7 Zest Lever 2000 Safeguard 4 Nondeodorant 3 Deodorant 1 Dial Lifebuoy Lava 6 low moisturizing .

Positioning and Advertising .

You should now be able to: 1.Know what market segmentation is and how to segment product-markets into submarkets. 5.Know three approaches to marketoriented strategy planning. . 4. 3.Know dimensions that may be useful for segmenting markets. 2.Know about defining generic markets and product-markets.Know what positioning is and why it is useful.Know a seven-step approach to market segmentation that you can do yourself. 6.

Key Terms •Market •Generic market •Product market •Market segmentation •Segmenting •Market segment •Single target market approach •Multiple target market approach •Combined target market approach •Combiners •Segmenters •Qualifying dimensions •Determining dimensions •Clustering techniques •Customer relationship management (CRM) •Positioning • • .

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