Marketing 7Marketing 7
Segmentation & TargetingSegmentation & Targeting
7.17.1
Segmentation and Targeting - 7Segmentation and Targeting - 7
Bases for segmentationBases for segmentation
Requirements for effective segmentationRequirements for effective segmentation
Segmentation and targeting strategiesSegmentation and targeting strategies
Positioning for a competitive advantagePositioning for a competitive advantage
One to one marketingOne to one marketing
7.27.2
Market SegmentationMarket Segmentation
MarketMarket
Market SegmentMarket Segment
SegmentationSegmentation
7.37.3
Why Segmentation?Why Segmentation?
Opportunities for building and strengthening long-Opportunities for building and strengthening long-term relationships with key customers.term relationships with key customers.
Improved marketing efficiency and effectiveness.Improved marketing efficiency and effectiveness.
Better understanding of the competitive marketing Better understanding of the competitive marketing environment.environment.
Faster response to the changing needs of customers.Faster response to the changing needs of customers.
.
7.47.4
Criteria for Successful Criteria for Successful SegmentationSegmentation
Segments must be:Segments must be:
– SubstantialSubstantial
– Identifiable and MeasurableIdentifiable and Measurable
– AccessibleAccessible
– ResponsiveResponsive
7.57.5
Segmenting the Consumer Segmenting the Consumer MarketMarket
GeographicGeographic
DemographicDemographic
7.67.6
Segmenting the Consumer Segmenting the Consumer MarketMarket
PsychographicsPsychographics
Benefits soughtBenefits sought
Usage rateUsage rate
7.77.7
Segmenting the B2B MarketSegmenting the B2B Market
Company CharacteristicsCompany Characteristics
Buying ProcessBuying Process
Customer RelationshipCustomer Relationship
7.87.8
SegmentationSegmentation
Select market/productSelect market/product
Select basis or bases for segmentingSelect basis or bases for segmenting
Select segment descriptorsSelect segment descriptors
Profile and analyze segmentsProfile and analyze segments
Select target marketSelect target market
Design & implement appropriate strategiesDesign & implement appropriate strategies
7.97.9
EXERCISE EXERCISE
Proctor and Gamble decided to a air a Spanish language TV spot Proctor and Gamble decided to a air a Spanish language TV spot for Crest Whitening Plus Scope during the Grammy awards. Nike for Crest Whitening Plus Scope during the Grammy awards. Nike and Pepsi have experimented with Spanish TV ads. Marketers say and Pepsi have experimented with Spanish TV ads. Marketers say the Hispanic market is growing and has unique needs.the Hispanic market is growing and has unique needs.
1) Is this a good market to target? Why?1) Is this a good market to target? Why?2) Select a product that would be good to 2) Select a product that would be good to target at this segment. Describe why and target at this segment. Describe why and design an ad to motivate the consumer to design an ad to motivate the consumer to buy. Where would the ad be placed and buy. Where would the ad be placed and why.why.
7.107.10
Market Coverage StrategiesMarket Coverage Strategies
Undifferentiated marketingUndifferentiated marketing
Concentrated marketingConcentrated marketing
Multi-segment targetingMulti-segment targeting
A
Mix 2 (C)
Mix 3 (E)
B
C
D
E
Mix 1 (A-E)
Mix 2 (E)
Undifferentiated
Concentrated
Differentiated
Segmentation StrategiesSegmentation Strategies
7.137.13
One-to-One MarketingOne-to-One MarketingDefinition – Definition – an individualized marketing an individualized marketing approach that uses consumer information to approach that uses consumer information to build long-term, personalized and profitable build long-term, personalized and profitable relationship with individual consumersrelationship with individual consumers
Refined and focused approach Refined and focused approach – Identifying the best customersIdentifying the best customers– Retaining loyal customersRetaining loyal customers– Targeting marketing communicationsTargeting marketing communications– Reinforcing purchase decisionsReinforcing purchase decisions– Improving customer serviceImproving customer service
7.147.14
Evolution of One-to-One Evolution of One-to-One MarketingMarketing
Return to the approach used before the Return to the approach used before the
Industrial RevolutionIndustrial Revolution
Increasing diversityIncreasing diversity
Today consumers demand moreToday consumers demand more
Technology makes it possible Technology makes it possible
Decreasing brand loyaltyDecreasing brand loyalty
Demand for accountabilityDemand for accountability
7.157.15
Evolution of One-to-One Evolution of One-to-One MarketingMarketing
Aggregate profiles of consumers are not sufficient anymoreAggregate profiles of consumers are not sufficient anymore
Use customer information to develop compelling Use customer information to develop compelling communicationscommunications
Still a goal not a reality for most companiesStill a goal not a reality for most companies
Winners will be those who understand how and why consumers Winners will be those who understand how and why consumers buy what they dobuy what they do
7.167.16
Primary Concerns With One-to-Primary Concerns With One-to-One MarketingOne Marketing
1-1 means knowing what consumers value1-1 means knowing what consumers value
Consumers value privacy, relationship must be Consumers value privacy, relationship must be built on trustbuilt on trust
Little understanding on how companies use dataLittle understanding on how companies use data
Little regulationLittle regulation
7.117.11
Product PositioningProduct Positioning
A process designed to fit the product/service to a A process designed to fit the product/service to a target market in such a way as to set it apart target market in such a way as to set it apart from competition.from competition.
– keeps employees focused on the total value keeps employees focused on the total value packagepackage
– customers use this position as a kind of customers use this position as a kind of shorthand to perceptually map productsshorthand to perceptually map products
7.127.12
Positioning BasesPositioning Bases
AttributeAttribute
Price / QualityPrice / Quality
Use or applicationUse or application
UserUser
CompetitionCompetition
EmotionEmotion
Attribute XHigh
Attribute XLow
Attribute YHigh
Attribute YLow
A
B
C
D
E F
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