Focusing Marketing Strategy - which is that?
Defining markets
Segmentation
Focusing Marketing Strategy - which is that?
Dimensions to use
Segmentation
Focusing Marketing Strategy - which is that?
Identifying segments
Segmentation
Focusing Marketing Strategy - which is that?
Identifying segments to target
Segmentation
Focusing Marketing Strategy - which is that?
Segmentation approaches
Segmentation
Focusing Marketing Strategy - which is that?
Understanding customer's view
Positioning
Focusing Marketing Strategy - which is that?
Positioning techniques
Positioning
Focusing Marketing Strategy - which is that?
Evaluating segment preferences
Positioning
Focusing Marketing Strategy - which is that?
Differentiating the marketing mix
Positioning
Focusing Marketing Strategy - which is that?
Relationship between positioning & targeting
Positioning
A Market Is (4)
A group of people that lacks any one of these characteristics is NOT a market.
People of organizations with...
Needs or wants with...
the ability and...
the willingness to buy.
a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services-ways of satisfying those needs
Market
2 Basic Types of Market
generic market
product market
1 of 2 Basic Types of Market
A market with broadly similar needs and sellers offering various, often diverse, ways of satisfying those needs. Seller's focus on the need(s) the customer want satisfied and not how one sellers product is better than another
generic market
1 of 2 Basic Types of Market
A market with very similar needs and sellers offering various close substitute ways of satisfying those needs. Ex: Canon, Fujifilm, and Nikon all competing against each other.
The relevant market for finding opportunities shou
product market
People or organizations with needs or wants and the ability and willingness to buy.
Market
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
Market Segment
The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
Market Segmentation
The Importance of Market Segmentation
Markets have a variety of product _______ and _______
Marketers can better define customer _______
Decision makers can define _______ and allocate _______ more accurately
Markets have a variety of product needs and preferences
Marketers can better define customer needs
Decision makers can define objectives and allocate resources more accurately
4 Criteria for Segmentation
Substantiality
Identifiability and Measurability
Accessibility
Responsiveness
1 of 4 Criteria for Segmentation
Segment must be large enough to warrant a special marketing mix.
Substantiality
1 of 4 Criteria for Segmentation
Segments must be identifiable and their size measurable.
Identifiability and Measurability
1 of 4 Criteria for Segmentation
Members of targeted segments must be reachable with marketing mix.
Accessibility
1 of 4 Criteria for Segmentation
Unless segment responds to a marketing mix differently, no separate treatment is needed
Responsiveness
Related terms do not by themselves adequately describe a market and you can't just think of markets just in terms of the product they already produce and sell, things are always changing.
Product
Complete product-market 4 part description definition
What: Product type (type of good and type of service)
To meet what: Customer (user) needs
For whom: Customer types
Where: Geographic area
Segmentation is a Two-Step Process
Naming broad product-markets
Segmenting markets to selecting target markets and develop marketing mixes
aggregating, clustering people with similar needs into a "market segment
Segmenting
a relatively homogenous group of customers who will respond to a marketing mix in a similar way
Market segment
1 of 4 types of market segments
the customers in a market segment should be as similar as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
Homogeneous (similar) within
1 of 4 types of market segments
the customers in different segments should be as different as possible with respect to their likely responses to marketing mix variables and their segmenting dimensions
Heterogeneous (different) between
1 of 4 types of market segments
the segment should be big enough to be profitable
Substantial
1 of 4 types of market segments
the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables
Operational
3 basic ways to develop market-oriented strategies in a broad product-market
single target market-approach (segmenters)
multiple target-market approach (segmenters)
combined target market approach (combiners)
1 of 3 basic ways to develop market-oriented strategies in a broad product-market
segmenting the market and picking one of the homogeneous segments as the firm's target market
single target market-approach (segmenters)
1 of 3 basic ways to develop market-oriented strategies in a broad product-market
segmenting the market and choosing two or more segments, and then treating each as a separate target market needing a different marketing mix.
multiple target-market approach (segmenters)
1 of 3 basic ways to develop market-oriented strategies in a broad product-market
Combining two or more submarkets into one larger target market as a basis for one strategy.
combined target market approach (combiners)
try to increase the size their target markets by combining two or more segments, look for similarities among homogeneous submarkets instead of differences then use one marketing mix to speak to those all at once. Ex: off roaders and exercisers for the bik
Combiners
aim at one or more homogeneous segments and try to develop a different marketing mix for each segment, aim at one or more and it is possible to provide superior value and satisfy them better. Which leads to greater profit potential for the firm. They can
Segmenters
Dimensions relevant to including a customer type in a product-market
Qualifying dimensions
Dimensions that actually affect the customer's purchase of a specific product or brand in a product market.
Determining dimensions
Marketers Need Information about Competitors
All customer needs�>
_________________�>
_________________�>
Homogeneous (narrow) product-markets�>
_________ target market; _________ target markets; _________ target market
All customer needs�>
Some generic market�>
One broad product-market�>
Homogeneous (narrow) product-markets�>
Single target market; Multiple target markets; Combined target market
A best practice approach to segmenting product-Markets
1. ______ the broad product market
2. ______ potential customers' needs
3. ______ homogeneous submarkets
4. ______ determining dimensions
5. ______ the possible product-markets
6. ______ why product m
1. Select the broad product market
2. Identify potential customers' needs
3. Form homogeneous submarkets
4. Identify determining dimensions
5. Name the possible product-markets
6. Evaluate why product market segment behave as they do
7. Estimate the size
4 Geographic Segmentation
Region of country or world
Market size
Market density
Climate
Benefits of Regional Segmentation
New ways to generate sales in sluggish and competitive ________
________ allow assessment of best selling brands in region
________ appeal to local preferences
Quicker reaction to competition
New ways to generate sales in sluggish and competitive markets
Scanner data allow assessment of best selling brands in region
Regional appeal to local preferences
Quicker reaction to competition
5 Demographic Segmentation Dimensions
Income
Sex or age
Family size or family life cycle
Occupation or education
Ethnicity or social class
Gender Segmentation
Women make ___% of consumers goods purchases annually
Many marketers of male-dominated arenas ______________.
Increasing numbers of marketers in female dominated categories ______________.
Women make 70% of consumers goods purchases annually
Many marketers of male-dominated arenas are targeting women.
Increasing numbers of marketers in female dominated categories are targeting men.
Income Segmentation
Determines ___________.
Determines ___________.
Retailers can appeal to:
low-income (Walmart)
High-income (Saks Fifth Avenue)
Both (Costco, Target)
Determines consumer wants.
Determines buying power.
Ethnic Segmentation
Largest ethnic markets are?
Hispanic Americans
African Americans
Asian Americans
Family Life Cycle
Age, Martial Status, Children
Market segmentation on the basis of personality, motives, lifestyles, and geodemographics.
Psychographic Segmentation
Segmentation which reflects a person's traits, attitudes, and habits.
Personality Segmentation
Segmentation where marketers might appeal to emotional, rational, or status motives, among others.
Motives
Segmenting potential customers into neighborhood lifestyle categories.
Combines geographic, demographic, and lifestyle segmentation.
Geodemographic Segmentation
The process of grouping customers into market segments according to the benefits they seek from the product.
Benefit Segmentation
Dividing a market by the amount of product bought or consumed.
Usage-Rate Segmentation
____% of all customers generate _____% of the demand
20% of all customers generate 80% of the demand
developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general
Positioning
the place a product, brand, or group of products occupies in consumers' minds relative to competing offerings
Position
assumes that consumers compare products on the basis of important features
Positioning
a positioning strategy that some firms use to distinguish their products from those of competitors
Product differentiation
Techniques which try to find similar patterns within sets of data, groups customers who are similar on their segmenting dimension into homogeneous segments, use computers to do what previously was done with much intuition and judgment.
Clustering techniques
The seller fine-tunes the marketing effort with information from a detailed customer database. It usually includes data on a customer's past purchases as well as other segmenting information.
Customer Relationship Management (CRM)
Refers to how customers think about proposed or present brands in a market. Should know how he or she wants target customers to think about the firm's marketing mix.
Positioning
Concisely identifies the firm's desired target marks, product type, primary benefit or point of difference, and the main reasons a buyer should believe the firm's claims.
Positioning statement