Segmentataion In Marketing

Target Marketing Opportunity Analysis:Segmentation and Positioning

To Accompany Basic Marketing, 14th Editionby William D. Perreault, Jr. and E. Jerome McCarthy

Your host:

David J. UrbanProfessor of Marketing

VirginiaCommonwealthUniversity

CustomersNeeds and other

SegmentingDimensions

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

S.W.O.T.

Targeting &Segmentation

Positioning &Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria

Marketing Strategy Planning Process

External Market EnvironmentExternal Market EnvironmentTechnology Political & Legal Social & Cultural Economic

The External Environment Affects Marketing Opportunities

Dimensions of the External

Environment

Economic



Environment

Economic

Technology



Environment

Economic

TechnologyPolitical and Legal



Environment

EconomicCultural and social

TechnologyPolitical and Legal

Cultural/Social Influences

Considering International Opportunities

Smaller

World


Better

Trends/

Early S

tart

Smaller

World Com

petitive

Advantage


Better

Trends/

Early S

tart

Smaller

World Com

petitive

Advantage

Analysis

Needed

International Opportunities

Four Basic Types of Opportunities

MarketPenetration

Present Products

New Products

Present Customers

New Customers

Note: hybrid combinations are common

MarketPenetration

Present Products

New Products

Present Customers

New Customers

•Note: hybrid combinations are common

MarketDevelopment


MarketPenetration

Present Products

New Products

Present Customers

New Customers


MarketDevelopment

ProductDevelopment


MarketPenetration

Present Products

New Products

Present Customers

New Customers


MarketDevelopment

ProductDevelopment

Diversification


Distinguishing Opportunities

BreakthroughOpportunity

Distinguishing Opportunities

BreakthroughOpportunity

CompetitiveAdvantage

vs.

Broad generic market

Narrowing down to Focus on a Target Market

Target Segment(s)

Broad product market

Specific market segment(s)

Examples of Generic Markets, Relevant Customer Needs, and Specific Product-Markets

Generic markets… and potential needs

Relevant product-types for some broad product-

markets

Some specificbrands within

narrowersubmarkets

Cameras, computer scanners or printers, duplicating machines, magnetic resonance imaging

Firms worldwide that want to capture images… Accuracy, convenience, flexibility, self-expression, speed, artistic capabilities

Cameras: Nikon 35mm, Sony, Mavica, Polaroid Instant, RCA video, Kodak 70mm movie cameras

Individualized Marketing

Segmentation Dimensions for Consumer Markets

Needs & otherbehavioral

Segmentation Dimensions for Consumer Markets

Needs & otherbehavioral

Geographic

Demographic

Demographic Segmentation and Promotion

Segmentation Dimensions for Business/Organizational Markets

Kind ofRelationship

Buying Situation

Type ofCustomer

Demographics

PurchasingMethod

Product Use

PossibleSegmentationDimensions

HomogeneousWithin

Evaluating Market Segments

Criteria forGood

Segments

HeterogeneousBetween


Criteria forGood

Segments

HomogeneousWithin

Substantial


Criteria forGood

Segments

HomogeneousWithin


Operational


Criteria forGood

Segments

HomogeneousWithin


Substantial

Developing Market-Oriented Strategies in Broad Product-Markets

Combined Target Market Approach

Multiple Target Market Approach

Single Target Market Approach

This approach segments the marketand picks one of the homogeneoussegments as the firm's target market.

The segmenter here aims at onesubmarket with one marketing mix.

TheStrategy





This approach segments the marketand chooses two or moresegments as the firm's target market.

The segmenter here aims at two or more submarkets with a different marketing mix for each.

Strategy1

Strategy 2

Strategy3





This approach combines two or More submarkets into a larger target market as a basis for one strategy.

The combiner here aims at twosubmarkets with one marketing mix.

TheStrategy

Segmenting Product Markets

ProcessforSegmentingProduct-Markets

Name Broad Product-Market

List Customer Needs


List Customer Needs


Narrow Product-Markets

IdentifyDetermining Dimensions



List Customer Needs




Name PossibleMarket segments

Evaluate Segments



List Customer Needs



Name PossibleMarket segments

Evaluate Segments


Estimate Size


The Competitive Environment

Key areas toconsider

Competitoranalysis


Competitoranalysis

Competitiverivals



Competitoranalysis

Competitiverivals

Competitivebarriers


Product Space Positioning for Bar Soaps

High moisturizing

Low moisturizing

Nondeodorant Deodorant

High moisturizing

Low moisturizing


Safeguard

Lever 2000

Zest

CoastLux

Dove

Tone

LavaLifebuoy

Dial


High moisturizing

Low moisturizing


1

2

3

4

5

7

6

8

Safeguard

Lever 2000

Zest

CoastLux

Dove

Tone

LavaLifebuoy

Dial


Evaluating OpportunitiesB

usin

ess

Stre

ngth

Industry AttractivenessH

igh

Med

ium

Low

High Medium Low

Evaluating OpportunitiesB

usin

ess

Stre

ngth

Industry AttractivenessH

igh

Med

ium

Low

High Medium Low

No Growth

Borderline

Growth

CompanyMission, Objectives,

& Resources

CompetitorsCurrent &

Prospective

S.W.O.T.

Targeting &Segmentation

Positioning &Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria

Marketing Strategy Planning Process

External Market EnvironmentExternal Market EnvironmentTechnology Political & Legal Social & Cultural Economic

CustomersNeeds and other

SegmentingDimensions

Segmentataion In Marketing

Education

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