Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman...
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Transcript of Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman...
![Page 1: Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman Shahid.](https://reader030.fdocuments.us/reader030/viewer/2022032607/56649ec55503460f94bd0d94/html5/thumbnails/1.jpg)
Principle of MarketingTopic
Identifying & Targeting Market Segments
Lecture No 7,8.
By: Salman Shahid
![Page 2: Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman Shahid.](https://reader030.fdocuments.us/reader030/viewer/2022032607/56649ec55503460f94bd0d94/html5/thumbnails/2.jpg)
Market Segmentation Targeting & positioning
Market Segmentation: Dividing a market into distinct groups of
buyers with different needs, characteristics, or behavior who might require separate products or marketing mixes.
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Market Segmentation
![Page 4: Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman Shahid.](https://reader030.fdocuments.us/reader030/viewer/2022032607/56649ec55503460f94bd0d94/html5/thumbnails/4.jpg)
Features of market segmentation
• It must be identifiable
• It must be accessible
• It must be optimum in size
• It must be profitable
• It must be durable
• It must be compatible
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Levels of Market Segmentation
• Mass Marketing
• Segment Marketing
• Niche (concentrated) marketing
• Micro Marketing
![Page 6: Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman Shahid.](https://reader030.fdocuments.us/reader030/viewer/2022032607/56649ec55503460f94bd0d94/html5/thumbnails/6.jpg)
Mass Marketing
Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
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Example of Mass Marketing
![Page 8: Principle of Marketing Topic Identifying & Targeting Market Segments Lecture No 7,8. By: Salman Shahid.](https://reader030.fdocuments.us/reader030/viewer/2022032607/56649ec55503460f94bd0d94/html5/thumbnails/8.jpg)
Segment Marketing
Isolating broad segments that make up a market and adapting the marketing to match the needs of one or more segments (different income & age groups)
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Example “Nokia” of Segment Marketing
Price Rupees: 19290 Price Rupees: 38290
Pri
ce R
upee
s:
919
0
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Niche (concentrated) marketing
Focusing on sub-segments or niche with distinctive traits that may seek a special combination of benefits
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Micromarketing
The practice of tailoring products and marketing programs to suit tastes of specific individuals and location – includes local marketing and individuals marketing. (Software companies, weapons companies)
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Bases for Segmenting Consumer Markets
• Geography – Nations– Country– Region of the country– State– City– County
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Bases for Segmenting Consumer Markets
• Demography– Age
– Gender
– Family size
– Family life cycle
– Income
– Occupation
– Education
– Ethnicity
– Nationality
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Bases for Segmenting Consumer Markets
• Psychographics
– Social class (lower lowers, upper lowers, working class, middle class, upper middles, lower upper, uppers uppers)
– Lifestyle (Achievers, strivers, strugglers)
– Personality (compulsive, gregarious, authoritarian, ambitious)
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Bases for Segmenting Consumer Markets
• Behavior– Purchase occasions– Benefits– User status– Usage rate– Loyalty status– Readiness stage
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Bases for segmenting business markets
• Demography
– Industry which industries that buy this product should we focus on?
– company size what size companies should we focus on?
– Location what geographical areas should we focus on?
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Bases for segmenting business markets
• Operating variables– customer technologies– usage rate– user status – customer service requirements
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Bases for segmenting business markets
• Purchasing approaches
– centralized vs. decentralized purchasing
– current vs. potential customers
– purchasing criteria
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Bases for segmenting business markets
• Situational factors
– urgency of need
– application of product
– size of order
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Evaluating market segments
• Segment characteristics– Measurable– Adequate size– Different response– Accessible– Actionable
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Evaluating market segments
• Segment structural attractiveness – number & strength of competitors – availability & strength of substitute products – potential market entrants – supplier power – buyer power
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Evaluating market segments
• Fit with company objectives & resources
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Market TargetingEvaluating market segments
• In evaluating different market segments, a firm must look at three factors:
• segment size and growth
• Segment structural attractiveness
• Company objectives and resources
Example of market targeting
Technology, Agriculture, Textile, Education
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Target market
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Target market selecting market segments
After evaluating different segments, the company must now decide and how many segments to serve. This is the problem target market selection.
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Target market
A set of buyers sharing common needs or characteristics that the company decides to serve.
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Example of Target market Textile
• Females
• Males
• Children
• Senior citizens
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Example of Target market Textile for males
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Example of Target market Textile for Females
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Example of Target market Textile children & senior citizens
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Example of Target market Textile Bed sheets
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Curtains
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Woven garment
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Market coverage strategies
• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing
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Undifferentiated marketing
A marketing-coverage strategy in which firm decides to ignore market segment differences and go after the whole market with one offer.
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Example of Undifferentiated marketing
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Differentiated marketing
A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
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Example of Differentiated marketing
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Concentrated marketing
• A market-coverage strategy in which a firm goes after a large share of one or a few submarkets.
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Positioning for competitive advantage
Product position:- the why the product is defined by consumers on important attributes – the place the product occupies in consumers, minds relative to competing products
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Example -1 Positioning for competitive advantage
Honda civic advertises its low price.
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Example-2 Positioning for competitive advantage
• BMW promotes performance