Unit 3 Unit 3 Market Segmentation, Targeting, and g g g - PowerPoint PPT Presentation

Unit 3 Unit 3 Market Segmentation, Targeting, and g g g Positioning for Competitive Advantage 1 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Road Map: Previewing the Road Map: Previewing the Concepts  Define the three steps of target marketing: Define the three steps of target marketing: market segmentation, market targeting, and market positioning.  List and discuss the major levels of market segmentation and bases for segmenting consumer and business markets. consumer and business markets.  Explain how companies identify attractive market segments and choose a market coverage strategy coverage strategy.  Discuss how companies can position their products for maximum competitive p p advantage in the marketplace. 2 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Steps in Market Segmentation, Targeting and Positioning Targeting, and Positioning 3 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Si St Six Step STP Process STP P Determine the segmentation basis 1. Segment the Market Segment the Market 2 2. Profile each segment 3. Assess segment attractiveness Assess segment attractiveness 4. 4 Select target segments 5. D t Determine positioning i iti i 6. 4 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 1 Market Segmentation Step 1. Market Segmentation Levels of Market Segmentation Dividing Markets into Smaller Segments that Can be d k S ll S h C b Reached More Efficiently And Effectively With Products and Services That Match Their Unique Needs and Services That Match Their Unique Needs. Mass Marketing Same product to all consumers S d t t ll (no segmentation, i.e Coca-Cola at one time) S Segment Marketing t M k ti Different products to one or more segments (some segmentation, i.e. Marriott) (some segmentation, i.e. Marriott) 5 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 1. Market Segmentation Step 1. Market Segmentation Levels of Market Segmentation Niche Marketing Niche Marketing Different products to subgroups within segments Different products to subgroups within segments (more segmentation, i.e. Standard or Luxury SUV’s) (more segmentation, i.e. Standard or Luxury SUV’s) (more segmentation, i.e. Standard or Luxury SUV s) (more segmentation, i.e. Standard or Luxury SUV s) Micromarketing Products to suit the tastes of individuals and locations (complete segmentation) Individual Marketing Local Marketing Tailoring products and Tailoring brands/promotions to programs to the needs of programs to the needs of l local customer groups l t individual customers 6 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 1. Market Segmentation Step 1. Market Segmentation Geographic Segmentation World Region or Country City or Metro Size City or Metro Size Density or Climate 7 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 1 Market Segmentation Step 1. Market Segmentation Demographic Segmentation  Dividing the market into groups based on variables such as: such as: – Age – Life-cycle stage or family size – Gender Gender – Income – Occupation – Education – Education – Religion – Race – Nationality Nationality 8 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 1. Market Segmentation Step 1. Market Segmentation Psychographic Segmentation Di id Divides Buyers Into Different Groups Based On: B I Diff G B d O 9 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 1 Market Segmentation Step 1. Market Segmentation Behavioral Segmentation  Dividing the market into groups based on variables g p such as: – Occasions – Benefits sought Benefits sought – User status – Usage rate Usage rate – Loyalty status 10 CuuDuongThanCong.com https://fb.com/tailieudientucntt

 There are many ways to segment a market. Using the four segmentation g g variables (Geographic, Demographic, Psychographic & Behavioral), discuss which variables would be most important for segmenting: – drivers of a proposed new sports car.  Explain your choices. 11 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Segmenting Business Markets Segmenting Business Markets Operating Characteristics Operating Characteristics Business Marketers Use Many of the Purchasing Approaches Same Consumer Variables Plus: Variables, Plus: Situational Factors Personal Characteristics Personal Characteristics 12 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Segmenting International Segmenting International Markets Geographic Geographic Location Factors Used to Segment g Economic Economic Cultural Cultural International Factors Factors Markets Political and Legal Factors Legal Factors 13 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 1 Market Segmentation Step 1. Market Segmentation Requirements for Effective Segmentation  Measurable: size,  Differential: segments purchasing power, and are conceptually p profiles of segments g distinguishable and distinguishable and can be measured. respond differently to  Accessible: segments different marketing mix can be effectively y elements and elements and reached and served. programs.  Substantial:  Actionable: effective segments are large or segments are large or programs can be profitable enough to designed for attracting serve. and serving the segments. 14 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 2. Market Targeting Step 2. Market Targeting Evaluating Market Segments  Segment Size and Growth  Segment Size and Growth – Analyze current segment 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 & substitute products, and the power of buyers & suppliers.  Company Objectives and Resources – Examine company skills & resources needed to succeed in that segment(s). – Offer superior value & gain advantages over p g g competitors. 15 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 2. Selecting Market Segments Step 2. Selecting Market Segments Market Coverage Strategies 16 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 2 Selecting Market Segments Step 2. Selecting Market Segments Choosing a Market-Coverage Strategy Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies Competitors Marketing Strategies 17 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Socially Responsible Target Socially Responsible Target Marketing  Smart targeting helps companies and Smart targeting helps companies and consumers alike.  Target marketing sometimes generates  Target marketing sometimes generates controversy and concern. – Disadvantaged and vulnerable can be Disadvantaged and vulnerable can be targeted. – Cereal, cigarette, beer, and fast-food Ce ea , c ga ette, bee , a d ast ood marketers have received criticism in the past. – Internet has raised fresh concerns about potential targeting abuses. 18 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 3 Positioning for Step 3. Positioning for Competitive Advantage  Product’s Position - the way the product is defined by consumers on important attributes.  Product is compared with competing products. P d t i d ith ti d t  Simplifies the buying process by helping consumers organize products into categories. consumers organize products into categories  Marketers must: – Plan positions to give their products the greatest advantage in selected target markets, – Design marketing mixes to create these planned positions. positions. 19 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Step 3. Choosing a Positioning Step 3. Choosing a Positioning Strategy Step 1. Identifying Possible Competitive Advantages Advantages Step 2. Choosing the Right Competitive g t Co pet t e Advantage Step 3. Communicating p g and Delivering the Chosen Position 20 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Identifying Possible Identifying Possible Competitive Advantages  Key to winning and keeping customers is to understand their needs and buying processes better than competitors do and deliver more value.  Competitive advantage – extent that a company can position itself as providing superior value to selected idi i l l d target markets. 21 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Identifying Possible Identifying Possible Competitive Advantages Product Services Differentiation Differentiation i.e. Features, Performance, i e Features Performance i e Delivery Installation i.e. Delivery, Installation, Repair Services, Customer Style & Design, Attributes Training Services Channel Channel Differentiation People Image Differentiation Differentiation Differentiation Differentiation i.e. Symbols, Characters i.e. Hiring, Training Better People Than Competitors Do 22 CuuDuongThanCong.com https://fb.com/tailieudientucntt

Vol o Volvo  This ad demonstrates how Volvo positions on the specific product attribute of safety the specific product attribute of safety.  http://www.volvocars.com 23 23 CuuDuongThanCong.com https://fb.com/tailieudientucntt