Exhibit 4-1: Focusing Marketing Strategy with Segmentation and Positioning · PDF...
Transcript of Exhibit 4-1: Focusing Marketing Strategy with Segmentation and Positioning · PDF...
Exhibit 4-1: Focusing Marketing Strategy with Segmentation and Positioning
Exhibit 4-2: Relationship between Generic and Product-Market Definitions
Exhibit 4-3: Narrowing Down to Target Markets
Exhibit 4-4: A Market Grid Diagram with Submarkets
Exhibit 4-5: Every Individual Has His or Her Own Unique Position in a Market—Those with Similar Positions Can Be Aggregated into Potential Target Markets
Exhibit 4-5: Every Individual Has His or Her Own Unique Position in a Market—Those with Similar Positions Can Be Aggregated into Potential Target Markets
Exhibit 4-7: Relation of Potential Target Market Dimensions to Marketing Strategy Decision Areas
Exhibit 4-8: Possible Segmenting Dimensions and Typical Breakdowns for Consumer Markets
Exhibit 4-9: Possible Segmenting Dimensions for Business/Organizational Markets
Exhibit 4-10: Finding the Relevant Segmenting Dimensions
A Best Practice Approach for Segmenting Product-Markets
2. Identify potentialcustomer needs
7. Estimate size of eachproduct-market segments
1. Select (name) the broad product-market
3. Form initial homogeneoussubmarkets
4. Identify determiningdimensions
5. Name possibleproduct-markets
6. Evaluate product-marketsegments
BestPractice
Approachfor
SegmentingProduct-Markets
Segmenting Product Markets
Exhibit 4-11: “Product Space” Representing Consumers’ Perceptions for Different Brands of Bar Soap
Exhibit: Segmenting the Broad Product-Market for Motel Guests in a Large Urban Area
Computer Aided Problem
Computer Aided Problem
How changes in the external environments affect segmentation opportunities (Chapter 3) Introduction to market segmentation concepts (Chapter 4)Why demographic variables are useful for segmentation and what they tell us about the size of segments (Chapter 5 and 6)How understanding customer behavior leads to better segmentation (Chapters 5 and 6)How to improve the information on which segmentation decisions are based (Chapter 7)Estimating (forecasting) segment size and likely profitability (Appendix B)
How Readings Relate to Market Segmentation
Customers within a segment should have similar responses to marketing mix, similar segmenting dimensions
Customers in different segments should have different responses to marketing mix, different segmenting dimensions
Segment should be large enough to be profitable
Segmenting dimensions should be useful for identifying customers,helpful in deciding on marketing mix
Criteria for Segmenting
Single Target Market Approach– select one homogeneous segment as the target
Multiple Target Market Approach– select two or more target segments– develop a different marketing mix for each segment
Combined Target Market Approach– combine submarkets into a single target market– develop one marketing mix for the combined target
Three Ways to Develop Market-Oriented Strategies
There May Be Different Demand Curves in Different Market Segments
CUSTOMER RELATED:– Customer needs (automobiles)– Geographic location (tire chains)– Age (insurance policies)– Sex (clothing)– Family size (child care services)– Income (vacation services)– Education (magazines)
SITUATION RELATED:– Benefits offered (toothpaste)– Consumption/use patterns (cameras)– Brand familiarity (health care products)– Buying situation (soft drinks)
Examples of Possible Segmenting Dimensions for Consumer Markets
Type of organization (computer software)Closeness of relationship with customer (travel services)Size (buildings)North American Industry Classification System (NAICS) codes (machinery)Geographic location (electronic parts)Type of product (X-ray film)Buying situation (automobile components)Source loyalty (office supplies)Reciprocity (transporting services)
Examples of Possible Segmenting Dimensions for Business Markets
Qualifying Dimensions– Segmenting dimensions relevant to the product-
market– Are there characteristics typical of customers who
are at least potentially interested in the relevant product type?
Determining Dimensions– Segmenting dimensions that affect the purchase of a
specific product or brand– Why does a potential customer select one brand
over another?
Segmenting Dimensions
Segment Name
The sensory segment
The sociables
segment
The worriers
segment
The independent
segment Principal benefit
sought Flavor, product
appearance Brightness of
teeth Decay
prevention Price
Demographic strengths Children Teens, young
people Large families Men
Special behavioral
characteristics
Users of spearmint flavored
toothpaste
Smokers Heavy users Heavy users
Brands disproportion-ately favored
Colgate, Stripe Macleans, Plus White Ultra Brite Crest Brands on sale
Personality Characteristics
High self-involvement High sociability High
hypochondriasis High autonomy
Life-style characteristics Hedonistic Active Conservative Value-oriented
Toothpaste Market Segment Description
With customer relationship management (CRM) approaches, the seller fine-tunes the marketing effort based on information from a detailed customer database– Database often includes information about customer
characteristics, including past purchases and spending– Database may be used to select target customers for specific
offer or promotionSome examples– A customer who in the past has purchased shirts from L.L.
Bean may be a good prospect for sweaters, and will receive a special targeted catalog or email.
– A bank teller might suggest that a customer open a savings account or buy a certificate of deposit if the customer’s account balance is over $2000.
Customer Relationship Management (CRM)
Positioning analysis is based on how (potential) customers think about a firm's current or potential offeringPositioning considers how customers think about competitors' offerings as well as the firm’s own offeringPositioning analysis identifies what kind of offering different segments see as idealDifferentiation focuses on developing a marketing mix that target customers will see as distinct from competing mixesPositioning and differentiation help with combining and segmenting, by revealing which segments view the market in similar (or dissimilar) ways
Positioning and Differentiation