Pillars of Mktg

8/19/2019 Pillars of Mktg

1/31

1

PILLARS OF MARKETIN

STPD


2/31

2

Key Issues

• Definition of Segmentation, Targeting & Positioning

• Conventional vs. Unconventional Wisdom

• Segmentation y demogra!"ic, !syc"ogra!"ic, e"avior, et"nic and enefit

• Targeting y standardi#ed, concentrated & differentiated

• Positioning y attriute, $uality, !rice and user


3/31

Market Segmentation

3

Defn :-Represents an eort to identify andcategorize groups of customers andcountries according to commoncharacteristics.

Markets are eterogeneous! Segmentationdi"ides them into omogeneous Su# $nits.


4/31

Why Segment the Market?

%

1. &aci'itate the right choice of (arget Market2. &aci'itates )ecti"e (apping of the *hosen

market

3. Makes the Marketing )ort more )+cient

and )conomic

%. e'ps ,dentify 'ess satised Segments and*oncentrate on them

. &aci'itate deep dierentiation of oers #asedon the "a'ue sought

/. e'ps the rm create and occupy ne0segments on the #asis of "a'ue.


5/31

(argeting

(he process of e"a'uating segments andfocusing marketing eorts on a countryregion or group of peop'e that hassignicant potentia' to respond.


6/31

/

Positioning

%ocating a rand in consumers minds

over and against com!etitors in terms

of attriutes and enefits t"at t"erand does and does not offer. 'ttriute or (enefit

)uality and Price Use or User

Com!etition


7/31

Dierentiation

4roduct dierentiation is of "ita' importance inproduct management and has great potentia' inforging successfu' marketing strategies.5

4roducts can #e dierentiated on the #asis of

a6 (angi#'e product attri#utes)g $7 8 *'ose $p 4restige 4ans Da#ur 9atika

urkure Deo (itan 0atches ;a


8/31

?'o#a' Market Segmentation

@

Dened as the process of identifyingspecic segmentsA0hether they #ecountry groups or indi"idua' consumergroupsAof potentia' customers 0ith

homogeneous attri#utes 0ho are 'ike'y toeBhi#it simi'ar responses to a company>smarketing miB.


9/31

?'o#a' Market Segmentation

C

1. ?eographic2. Demographic

3. Socio-cu'tura'

%. 4sychographics. ;uying ;eha"ior


10/31

Demographic Segmentation

1

,ncome

4opu'ations

=ge distri#ution?ender

)ducation

Eccupation

What are the trends?


11/31

Demographic facts andtrends

11

= 0idening age gap eBists #et0een the o'derpopu'ations in the Fest and the 'arge 0orking-age popu'ations in de"e'oping countries

,n the )uropean $nion the num#er of

consumers aged 1/ and under is rapid'yapproaching the num#er of consumers aged/-p'us

=sia is home to mi''ion consumers aged 1/and under

a'f of Gapan>s popu'ation 0i'' #e age oro'der #y 22


12/31

Demographic facts andtrends

12

=merica>s three main ethnic groupsA=fricanH;'ack =mericans ispanic =mericansand =sian =mericansArepresent a com#inedannua' #uying po0er of I1 tri''ion

(he $nited States is home to 2@.% mi''ion

foreign-#orn residents 0ith a com#ined incomeof I233 #i''ion

;y 23 2 percent of the $.S. popu'ationAmi''ion =mericansA0i'' #e / or o'der "ersus13 percent J3/ mi''ion6 today

,ndia has the youngest demographic pro'eamong the 0or'd>s 'arge nations: More thanha'f its popu'ation is under the age of 2


13/31

4er *apita ,ncome

13


14/31

1 Most 4opu'ous *ountries

1%


15/31

Segmenting #y 4opu'ation

1

“Urban India is getting saturated. In thecities, everyone who can aford a television

has one. I you want to maintain highgrowth, you have to !enetrate into rural

India."

# $. %amachandran, &hie '(ecutive )hili!s'lectronics India


16/31

=ge Segmentation

1/

?'o#a' (eens 8 young peop'e #et0een theages of 12 and 1C= group of teenagers random'y chosen from

dierent parts of the 0or'd 0i'' share many of

the same tastes)g. *oee *afK>s on 7ifesty'e Segments

?'o#a' )'ite 8 aLuent consumers 0ho are0e'' tra"e'ed and ha"e the money to spendon prestigious products 0ith an image ofeBc'usi"ity.

)g. =udi *ar $sers


17/31

4sychographic Segmentation

1

?rouping peop'e according to attitudes"a'ue system 'ifesty'es and se'f 8concept.

eBamp'es (op ?uns J26: =m#ition po0er contro')'itists J2%6: E'd money car is


18/31

;eha"ior Segmentation

1@

o0 much they use ito0 often they use it

$ser status

7a0 of disproportiona'ityH4areto>s 7a0 8@ of a company>s re"enues areaccounted for #y 2 of the customers


19/31

;enet Segmentation

1C

;enet segmentation focuses on the "a'ueeNuation9a'ue O ;enets H 4rice

;ased on understanding the pro#'em aproduct so'"es the #enet it oers or theissue it addresses


20/31

=ssessing Market 4otentia'

2

(hree #asic criteria*urrent size of the segment and anticipated

gro0th potentia'*ompetition

*ompati#i'ity 0ith the company>s o"era''o#


21/31

C Puestions

21

Fho #uys our productQFho does not #uy itQFhat need or function does it ser"eQ

,s there a market need that is not #eing met #ycurrent productH#rand oeringsQFhat pro#'em does our product so'"eQFhat are customers #uying to satisfy the need

for 0hich our product is targetedQFhat price are they payingQFhen is the product purchasedQFhere is it purchasedQ


22/31

(arget Market StrategyEptions

22

Standardized g'o#a' marketingMass marketing on a g'o#a' sca'e$ndierentiated target marketing

*oncentrated g'o#a' marketingiche marketingSing'e segment of g'o#a' market

Dierentiated g'o#a' marketing

Mu'ti-segment targeting (0o or more distinct markets


23/31

4ositioning

23

7ocating a #rand in consumers> minds o"erand against competitors in terms ofattri#utes and #enets that the #rand doesand does not oer=ttri#ute or ;enetPua'ity and 4rice$se or $ser*ompetition


24/31

4ositioning Strategies

2%

?'o#a' consumer cu'ture positioning,denties the #rand as a sym#o' of a

particu'ar g'o#a' cu'ture or segment

&oreign consumer cu'ture positioning=ssociates the #rand>s users use occasions

or product origins 0ith a foreign country orcu'ture


25/31

4ositioning Strategies

2


26/31

*urrent Segment Size and?ro0th

2/

,s the market segment current'y 'argeenough to present a company 0ith theopportunity to make a protQ

,f the ans0er is no> does it ha"e

signicant gro0th potentia' to make itattracti"e in terms of a company>s 'ong-term strategyQ

Return


27/31

4otentia' *ompetition

2

,s there strong competition in the marketsegment current'yQ

,s the competition "u'nera#'e in terms ofprice or Nua'ityQ

Return


28/31

Se'f test Puestion 1

2@

Return

' toacco com!any*s decision to create a cigarette

rand t"at +ould a!!eal to +oring +omen

et+een t"e ages of -/01 +ould re!resent

+"ic" ty!e of segmentation2

a) demogra!"ic segmentation

3 enefit segmentationc3 !syc"ogra!"ic segmentation

d3 e"avioral segmentation


29/31


2C

Return

T"e term most closely associated +it"

psychographics is2

a3 gender

3 lifestyle

c3 statistics

d3 "eavy user e3 standard of living


30/31


3

Return

W"ic" of t"e follo+ing is 45T a target maret

strategy2

a3 standardi#ed gloal mareting

3 concentrated gloal mareting

c3 differentiated gloal mareting

d3 !syc"ogra!"ic gloal mareting


31/31

Se'f test Puestion %

31

Return

66666 is t"e act of differentiating

a !roduct in t"e mind of t"e customer

in relation to t"e !roduct offerings of com!etitors

is called2

a3 Product formulation

3 Positioning

c3 Com!arative analysis

d3 Diffusion

e3 Private/lael randing

Pillars of Mktg

Documents

Transcript of Pillars of Mktg