Marketing 7Marketing 7

Segmentation & TargetingSegmentation & Targeting

7.17.1

Segmentation and Targeting - 7Segmentation and Targeting - 7

Bases for segmentationBases for segmentation

Requirements for effective segmentationRequirements for effective segmentation

Segmentation and targeting strategiesSegmentation and targeting strategies

Positioning for a competitive advantagePositioning for a competitive advantage

One to one marketingOne to one marketing

7.27.2

Market SegmentationMarket Segmentation

MarketMarket

Market SegmentMarket Segment

SegmentationSegmentation

7.37.3

Why Segmentation?Why Segmentation?

Opportunities for building and strengthening long-Opportunities for building and strengthening long-term relationships with key customers.term relationships with key customers.

Improved marketing efficiency and effectiveness.Improved marketing efficiency and effectiveness.

Better understanding of the competitive marketing Better understanding of the competitive marketing environment.environment.

Faster response to the changing needs of customers.Faster response to the changing needs of customers.

.

7.47.4

Criteria for Successful Criteria for Successful SegmentationSegmentation

Segments must be:Segments must be:

– SubstantialSubstantial

– Identifiable and MeasurableIdentifiable and Measurable

– AccessibleAccessible

– ResponsiveResponsive

7.57.5

Segmenting the Consumer Segmenting the Consumer MarketMarket

GeographicGeographic

DemographicDemographic

7.67.6

Segmenting the Consumer Segmenting the Consumer MarketMarket

PsychographicsPsychographics

Benefits soughtBenefits sought

Usage rateUsage rate

7.77.7

Segmenting the B2B MarketSegmenting the B2B Market

Company CharacteristicsCompany Characteristics

Buying ProcessBuying Process

Customer RelationshipCustomer Relationship

7.87.8

SegmentationSegmentation

Select market/productSelect market/product

Select basis or bases for segmentingSelect basis or bases for segmenting

Select segment descriptorsSelect segment descriptors

Profile and analyze segmentsProfile and analyze segments

Select target marketSelect target market

Design & implement appropriate strategiesDesign & implement appropriate strategies

7.97.9

EXERCISE EXERCISE

Proctor and Gamble decided to a air a Spanish language TV spot Proctor and Gamble decided to a air a Spanish language TV spot for Crest Whitening Plus Scope during the Grammy awards. Nike for Crest Whitening Plus Scope during the Grammy awards. Nike and Pepsi have experimented with Spanish TV ads. Marketers say and Pepsi have experimented with Spanish TV ads. Marketers say the Hispanic market is growing and has unique needs.the Hispanic market is growing and has unique needs.

1) Is this a good market to target? Why?1) Is this a good market to target? Why?2) Select a product that would be good to 2) Select a product that would be good to target at this segment. Describe why and target at this segment. Describe why and design an ad to motivate the consumer to design an ad to motivate the consumer to buy. Where would the ad be placed and buy. Where would the ad be placed and why.why.

7.107.10

Market Coverage StrategiesMarket Coverage Strategies

Undifferentiated marketingUndifferentiated marketing

Concentrated marketingConcentrated marketing

Multi-segment targetingMulti-segment targeting

A

Mix 2 (C)

Mix 3 (E)

B

C

D

E

Mix 1 (A-E)

Mix 2 (E)

Undifferentiated

Concentrated

Differentiated

Segmentation StrategiesSegmentation Strategies

7.137.13

One-to-One MarketingOne-to-One MarketingDefinition – Definition – an individualized marketing an individualized marketing approach that uses consumer information to approach that uses consumer information to build long-term, personalized and profitable build long-term, personalized and profitable relationship with individual consumersrelationship with individual consumers

Refined and focused approach Refined and focused approach – Identifying the best customersIdentifying the best customers– Retaining loyal customersRetaining loyal customers– Targeting marketing communicationsTargeting marketing communications– Reinforcing purchase decisionsReinforcing purchase decisions– Improving customer serviceImproving customer service

7.147.14

Evolution of One-to-One Evolution of One-to-One MarketingMarketing

Return to the approach used before the Return to the approach used before the

Industrial RevolutionIndustrial Revolution

Increasing diversityIncreasing diversity

Today consumers demand moreToday consumers demand more

Technology makes it possible Technology makes it possible

Decreasing brand loyaltyDecreasing brand loyalty

Demand for accountabilityDemand for accountability

7.157.15

Evolution of One-to-One Evolution of One-to-One MarketingMarketing

Aggregate profiles of consumers are not sufficient anymoreAggregate profiles of consumers are not sufficient anymore

Use customer information to develop compelling Use customer information to develop compelling communicationscommunications

Still a goal not a reality for most companiesStill a goal not a reality for most companies

Winners will be those who understand how and why consumers Winners will be those who understand how and why consumers buy what they dobuy what they do

7.167.16

Primary Concerns With One-to-Primary Concerns With One-to-One MarketingOne Marketing

1-1 means knowing what consumers value1-1 means knowing what consumers value

Consumers value privacy, relationship must be Consumers value privacy, relationship must be built on trustbuilt on trust

Little understanding on how companies use dataLittle understanding on how companies use data

Little regulationLittle regulation

7.117.11

Product PositioningProduct Positioning

A process designed to fit the product/service to a A process designed to fit the product/service to a target market in such a way as to set it apart target market in such a way as to set it apart from competition.from competition.

– keeps employees focused on the total value keeps employees focused on the total value packagepackage

– customers use this position as a kind of customers use this position as a kind of shorthand to perceptually map productsshorthand to perceptually map products

7.127.12

Positioning BasesPositioning Bases

AttributeAttribute

Price / QualityPrice / Quality

Use or applicationUse or application

UserUser

CompetitionCompetition

EmotionEmotion

Attribute XHigh

Attribute XLow

Attribute YHigh

Attribute YLow

A

B

C

D

E F

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