Modern Marketing = STP Marketing

Transcription

1 Market Segmentation and Targeting Target Marketing Segmentation is about identifying Targeting is about selecting Market Segmentation Positioning is about differentiating and communicating Modern Marketing = STP Marketing DETERMINE CONSUMER NEEDS AND WANTS DIVIDE MARKETS ON RELEVANT DIMENSIONS DEVELOP PRODUCE POSITIONING DECIDE SEGMENTATION STRATEGY DESIGN MARKETING MIX STRATEGY Meeting the Consumer Needs Successful marketing strategies depend on meeting consumer needs and wants A firm with a good deal of venture capital may seek to discover broad variety of unmet needs Operate within your firm s need satisfaction activities At a strategic level, need and wants usually are translated into more operational concepts Market Division Three important questions to be considered Should the segmentation be a priori or a post hoc How does one determine the relevant dimensions or bases to use for segmentation What are some bases for segmenting consumer and organizational buyer markets Consumer Market Segmentation Customers can be divided or segmented by using

2 Geography Demography Sociography Behavior Market Segments for High-Tech Products The pessimists Business Family Entertainment Less Affluent Sidelined citizens Not interested in technology More Affluent Media-junkies Old consumers Willing to use Seek entertainment typically managers technology but and can t find much who don t touch slow to upgrade. of it online. Prefer their computers TV and other media at work The optimists Less Affluent Techno-strivers Family Entertainment Use technology from Families with limited Favor online cell phones to pagers budget but still entertainment but have to online service Interested in new less cash to spend primarily to gain technology. on it career edge More Affluent These customers are Also big spenders but They like the on-line the biggest spenders focused on technology world for and they re early for home uses such entertainment and adopters of new as family PC are willing to spend technology for for the latest personal use technotainment Organizational Buyer Markets Company size Purchase quantity Product application Organization type Location Purchase status Attribute importance

3 Psychographic Segmentation VALS 2 ( values and lifestyles ) Life styles are measured by asking consumers about their Activities Interests Opinions Segmentation research based on VALS is a product of SRI Consulting Business Intelligence VALS Profiles Abundant Resources Innovators Ideals Thinkers Achievement Achievers Self Expression Experiencers Believers Strivers Makers Minimal Resources Survivors Geodemographic Segmentation PRIZM: Potential Ranking Index by Zip Markets PRIZM assumes that similar customers live within the same or proximate neighborhood (s) PRIZM classifies every U.S. neighborhood into one of 62 distinct types or clusters of consumers PRIZM helps marketers understand customers in selected markets Market Segmentation Strategies The firm may decide not to enter the market The firm may not decide to segment but to be a mass marketer if The market is so small it s not profitable to market to one portion of it Heavy users comprise so much of sales they are the only relevant target Dominant brand does not need segmentation Differentiation Differentiation is to design a set of meaningful differences to distinguish the company s offering from competitors offering.

4 Differentiation can happen in Physical product Services Personnel Distribution channel Image Major Product Differentiators Horizontal Differentiation Features The characteristics that supplement the product s Style and design Vertical Differentiation Performance quality Conformance quality The degree to which all the produced units are promised target specification Durability Reliability Reparability basic function identical and meet the Product Positioning Positioning can be achieved according to selected attributes or functions Superiority to competitive products Positioned by use or application Positioned in terms of particular types of users Positioned relative to a product class Position mapping is a visual depiction of customers perception of competitive products Visualizing A Positioning Strategy Perceptual map Dimensions of attributes (i.e., product space) Customers perceptions Perceptual Map: The Bar Soaps

5 High Moisturizing Tone 7 Zest 4 Lever 2000 Dove 2 5 Safeguard Coast Lux 8 Nondeodorant 3 Deodorant 1 Dial Lava 6 Low Moisturizing Lifebuoy Repositioning: Case of GM A. Consumer perceptions in 1982 [o] and GM goals for 1990 [ ] High Price Cadillac o Buick o Family/ Conservative Chevrolet o Oldsmobile o o Pontiac Low Price Personal/ Expressive Saturn (1990) B. Potential change in goals from 1990 [ ] to 2002 Cadillac Buick Family/ Conservative Chevrolet High Price Oldsmobile Pontiac Low Price Personal/ Expressive Saturn Market Evaluation Measures 3Ms of market evaluation Measurable large enough to measure size and characteristics Meaningful large enough to deliver sufficient sales and growth potential Marketable can be reached and served in an efficient manner Market Evaluation Questions Measurability questions What are the appropriate bases for segmenting this market and can they be measured Is secondary data available so this can be done inexpensively If primary data are needed, will there be a return on investment Are specific names/addresses needed Can purchases by this segment be measured and tracked Market Evaluation Questions Meaningfulness Questions

6 How many people are in this market and how frequently will they purchase the product What market share can we expect What is the growth potential How strong is the competition and is it likely to change How satisfied are the consumers in this market with current offerings Market Evaluation Questions Marketability Questions Can this segment be reached with current channels of distribution Can we establish new channels efficiently, if needed What promotion media does this segment read, listen to, or watch Can we afford to promote to this segment and is there a media to reach them Are people in this segment willing to pay a price necessary for profit Can we produce a product for this market profitably Selecting Segments to Target Segment size and growth Current dollar sales; Projected growth rate; Estimated profit margins. Segment structural attractiveness Competitors; Substitute products; Power of buyers; Power of suppliers. Company objectives and resources Consistent; Feasible. Market Coverage Strategies Mass (or Undifferentiated) Marketing Marketing Mix The whole market Single Target Market Approach /Concentrated Marketing Mix Segment 1 Segment 2 S t3 Multiple Target Market Approach / Differentiated Marketing Mix 1 Marketing Mix 2 Marketing Mix 3 Combined Target Market Approach Segment 1 Segment 2 Segment 3 Marketing Mix Segment 1 Segment 2 Segment 3 Single-offer strategy Single-offer strategy Multi-off er Segmenter Single-offer strategy Combiner