1. Market orientation as philosophy Market segmentation Targeting market Positioning Marketing...

Market orientation as philosophy Market segmentation Targeting market Positioning Marketing mix

2

Select base for segmentation and identify appropriate market segments e.g. groups, individuals, organiztions.

Evaluate and appraise the market segments resulting from the first step.

Select an overall market targeting strategy and specific target segments.

Tailoring a distinct position in selected markets Developing marketing mixes that serve desired

positioning strategy in the marketplace Auditing marketing environments and efforts

3

The focus of a successful marketing program is the customer. Effectively marketing must fully understand the needs.

Customers with decent life and individualism have Heterogeneous demands, This has given rise to need segmenting.

The process of understanding the customer and choosing a group of customer you can serve best is targeting.

So target a segmentation is core of the marketing process.

4

5

Objective 3

Identify Total MarketIdentify Total Market

Effective SegmentationEffective Segmentation

Bases for SegmentationBases for Segmentation

Select Target SegmentSelect Target Segment

Positioning StrategyPositioning Strategy

Marketing MixMarketing Mix

Monitor, Evaluate and Monitor, Evaluate and ControlControl

The first step in the target market selection process is to specifically define the total market of all potential customers for a product category.

6

Segmenting means dividing a heterogeneous demanding markets into homogenous groups based on similar characteristics or traits

Heterogeneous demand- different groups of customers have differing needs from specific products.

Homogeneous segment- the separation of markets into distinctive groups based on homogeneous characteristics.

7

8

Distinctive

Measurable Identifiable

Substantia

l

Actionable

Accessible

9

Distinctive•Clear differences in consumer preferences for a product must exist.

10

•Difference preferences for a product must be identifiable and capable of being related to measurable variables.

Measurable Identifiable

11

•The proposed market segment must have enough size and purchasing power to be profitable.

Substantial

Criteria for successful segmentation

12

•Companies must be able to respond to difference preferences with an appropriate marketing mix.

Actionable

13

•The proposed market segment must be readily accessible and reachable with market programs.

Accessible

To divide a market into segments, firms use segmenting criterion that describe the characteristics of each part of the market.

14

15

Situation Situation SegmentationSegmentation

Psychographic Psychographic

SegmentationSegmentation

Geographic Geographic SegmentationSegmentation

Behavior/UsageBehavior/Usage SegmentationSegmentation

Demographic Demographic SegmentationSegmentation

Benefits-SoughtBenefits-Sought SegmentationSegmentation

16

Life-cycleLife-cycle

Social classSocial classSocial classSocial class

Income LevelIncome LevelIncome LevelIncome Level

EthnicEthnicEthnicEthnicEducationEducationEducationEducation

17








Localizes its marketing efforts to specific geographic regions

18

19








Grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions)

Useful but more difficult to identify and measure compared to demographic variables

20

21








Markets can be segmented based on the benefits that consumers desire from using a specific product

22

23








Purchase situation or occasionPhysical surroundingsSocial surroundingsTemporal perspective

24

25








Markets can be segmented by how often or how heavily consumers use a specific product Pareto’s Principle or 80/20 Principle - 80% of

revenue generated by 20% of customers

26

Light Users

80%

Light Users

80%Heavy Users

20%

Heavy Users

20%

Information for segmenting markets may be obtained from database such as Census, State Statistics etc.

27

While the steps in the target market selection process are essentially the same for business markets, there are three major differences:

The purchasing process, which differs greatly from the household consumer market.

The use of different segment variables, in simple way, a Standard Industrial classification is often employed

28

Segmentation variables used to segment business markets:

Size Industry Purchasing approaches Product usage Situational factors (seasonal trend) Geographic

29

Targeting: choose the specific segment toward which a firm directs its market efforts.

Niche Marketing: the process of targeting a small market segment with a specific, specialized marketing mix (not core products on offer).

Micromarketing- the process of targeting smaller, more narrowly defined market segments.

On the individual consumer end of the continuum, a firm may decide to target individual consumers and personalize marketing efforts toward each.

30

Can effectively serve all the segments, must target marketing efforts to a segment or segments.

Marketing opportunities and unfilled ‘gaps ’ are more accurately identified

Marketing mix is more delicately meet toe potential customer’s needs

Offer the greatest potential to achieve profit or relationship goals

31

32

1.Undifferentiated marketing

2.Differentiated marketing

3.Concentrated marketing

4.Custom marketing

Companies might develop one marketing mix strategy that is appropriate for all members of the total market.

33

Undifferentiated targeting Undifferentiated targeting strategystrategy

Concentrated strategy

Differentiated strategy

Only one marketing mix is developed and directed toward a few, or perhaps one, profitable market segments.

34

Undifferentiated targeting strategy

Concentrated strategyConcentrated strategy

Differentiated strategy

Exists when a firm develops different marketing mix plans specially tailored for each of two or more market segments.

35

Undifferentiated targeting strategy

Concentrated strategy

Differentiated strategyDifferentiated strategy

Positioning

Kotler defined: “designing an offer so that it occupies a distinct and valued place in the minds of the target customer.”

36

PositioningImage that customers have

about a product in relation to the product’s competitors

37

Key to developing the appropriate marketing mix is the positioning strategy of the product.

38

All products have object and subject attributes

Recognizable Comparable

39

Effective positioning What consumers currently think about

the product, especially in relation to competing products

What the marketer wants consumers to think about the product

Which positioning strategy will elevate the consumers’ current product image to the desired product image.

40

Position Mapping also called as perceptual mapping- creating a visual description about consumer perceptions of a product on two or more dimensions in relation to competitors.

41

The positioning strategy must determine where a company wants to go

And how to get there by positioning the product according to any of the following ways:

Price/Quality Product Attributes Product User Product Usage Product Class Competition Symbol

44

45

Objective 3

Identify Total MarketIdentify Total Market


Bases for SegmentationBases for Segmentation

Select Target SegmentSelect Target Segment

Positioning StrategyPositioning Strategy

Marketing MixMarketing Mix

Monitor, Evaluate and Monitor, Evaluate and ControlControl

The final steps are to develop and a marketing mix matched to the needs of the target market

This must support the chosen positional strategy in the selected target markets

Therefore determine the ‘4Ps ’ or “7Ps” of its marketing mix as a tool to achieve the desired position

46

Productcustomer value Pricecost Placeconvenience Promotioncommunication Peopleconsideration Processesco-ordination Physical evidenceconfirmation

47

48

Objective 4

ProductPlace

(Distribution)

Promotion Price

Marketing Mix

Refers to goods, services, people, places and ideas

Household consumers Business-to-business customers

49

Product

Marketing channel is the network of organizations that create time, place and ownership utilities for household consumers and business customers.

50

Place

(Distribution)

Integrated Marketing Communication (IMC)

System of management and integration of marketing communication elements

Advertising, publicity, sales promotion, personal selling, sponsorship marketing, and point-of-purchase communications

51

Promotion

Pricing decisions are complex and are driven by a variety of considerations including:

Customer demand, costs, information availability, competition, profit motives, product considerations, and legal considerations

52

Price

1. Market orientation as philosophy Market segmentation Targeting market Positioning Marketing...

Documents

Transcript of 1. Market orientation as philosophy Market segmentation Targeting market Positioning Marketing...