Kotler07 basic

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Kotler07 basic

  1. 1. Segmentation, Targeting, and Positioning Building the Right Relationships with the Right Customers Chapter 7
  2. 2. Learning Goals1. Learn the three steps of target marketing, market segmentation, target marketing, and market positioning2. Understand the major bases for segmenting consumer and business marketing strategy3. Know how companies identify attractive market segments and choose target marketing strategy4. Realize how companies position their products for maximum competitive advantage in the marketplace 7-2
  3. 3. Case Study Procter & Gamble• Sells multiple brands • Has also identified within the same product different niches within category for a variety of certain segments products • Product modifications are useful: Tide offers• Brands feature a seven different product different mix of benefits formulations to serve and appeal to different different niches’ needs segments 7-3
  4. 4. Steps in market segmentation, targeting and positioningMarket Segmentation  Identify bases for segmenting the market  Develop segment profilesTarget Marketing  Develop measure of segment attractiveness  Select target segmentsMarket Positioning  Develop positioning for target segments  Develop a marketing mix for each segment 7-4 Goal 1: Learn the three steps of target marketing
  5. 5. DefinitionMarket Segmentation:  Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. 7-5 Goal 2: Understand the major bases for segmentation
  6. 6. Segmenting Consumer MarketsGeographical segmentationDemographic segmentation  Most popular segmentationPsychographic segmentation  Lifestyle, social class, and personality-based segmentationBehavioral segmentation 7-6 Goal 2: Understand the major bases for segmentation
  7. 7. Geographic Segmentation Variables• World region • Neighborhood or country • City or• U.S. region metro size• State • Density• City • Climate 7-7 Goal 2: Understand the major bases for segmentation
  8. 8. Demographic Segmentation Variables• Age • Occupation• Gender • Education• Family size • Religion• Family life cycle • Race• Income • Generation • Nationality 7-8 Goal 2: Understand the major bases for segmentation
  9. 9. Behavioral Segmentation Variables• Occasions • User Rates• Benefits • Loyalty Status• User Status • Readiness Stage• Attitude Toward the Product 7-9 Goal 2: Understand the major bases for segmentation
  10. 10. Segmenting Business MarketsDemographic segmentation  Industry, company size, locationOperating variables  Technology, usage status, customer capabilitiesPurchasing approachesSituational factors  Urgency, specific application, size of orderPersonal characteristics  Buyer-seller similarity, attitudes toward risk, loyalty 7 - 10 Goal 2: Understand the major bases for segmentation
  11. 11. Segmenting International MarketsGeographic segmentation  Location or regionEconomic factors  Population income or level of economic developmentPolitical and legal factors  Type / stability of government, monetary regulations, amount of bureaucracy, etc.Cultural factors  Language, religion, values, attitudes, customs, behavioral patterns 7 - 11 Goal 2: Understand the major bases for segmentation
  12. 12. Requirements for Effective SegmentationMeasurable  Size, purchasing power, and profile of segmentAccessible  Can be reached and servedSubstantial  Large and profitable enough to serveDifferentiable  Respond differentlyActionable  Effective programs can be developed 7 - 12 Goal 2: Understand the major bases for segmentation
  13. 13. Target Marketing Target Market  Consists of a set of buyers who share common needs or characteristics that the company decides to serve 7 - 13Goal 3: Know how companies identify and target attractive segments
  14. 14. Target Marketing Evaluating Market Segments  Segment size and growth  Segment structural attractiveness • Level of competition • Substitute products • Power of buyers • Powerful suppliers  Company objectives and resources 7 - 14Goal 3: Know how companies identify and target attractive segments
  15. 15. Target Marketing Selecting Target Market Segments  Undifferentiated (mass) marketing  Differentiated (segmented) marketing  Concentrated (niche) marketing  Micromarketing (local or individual) 7 - 15Goal 3: Know how companies identify and target attractive segments
  16. 16. Choosing a Target Marketing Strategy Considerations include:  Company resources  The degree of product variability  Product’s life-cycle stage  Market variability  Competitors’ marketing strategies 7 - 16Goal 3: Know how companies identify and target attractive segments
  17. 17. Target Marketing Socially Responsible Targeting  Some segments, especially children, are at special risk  Many potential abuses on the Internet, including fraud Internet shoppers  Controversy occurs when the methods used are questionable 7 - 17Goal 3: Know how companies identify and target attractive segments
  18. 18. PositioningPositioning:  The place the product occupies in consumers’ minds relative to competing products.  Typically defined by consumers on the basis of important attributes.  Involves implanting the brand’s unique benefits and differentiation in the customer’s mind.  Positioning maps that plot perceptions of brands are commonly used. 7 - 18 Goal 4: Realize how companies position their products
  19. 19. Choosing a Positioning Strategy Topics Differentiation can be based onIdentifying possible  Products  Servicescompetitive advantages  ChannelsChoosing the right  People  Imagecompetitive advantageChoosing a positioningstrategy 7 - 19 Goal 4: Realize how companies position their products
  20. 20. Market Segmentation Topics • How many differences to promote?  Unique sellingIdentifying possible propositioncompetitive advantages  Several benefitsChoosing the right • Which differences tocompetitive advantage promote? Criteria include:Choosing a positioning  Important  Distinctivestrategy  Superior  Communicable  Preemptive  Affordable  Profitable 7 - 20 Goal 4: Realize how companies position their products
  21. 21. Market Segmentation Topics • Value propositions represent the fullIdentifying possible positioning of the brandcompetitive advantages • Possible valueChoosing the right propositions:competitive advantage  More for More  More for the SameChoosing a positioning  More for Lessstrategy  The Same for Less  Less for Much Less 7 - 21 Goal 4: Realize how companies position their products
  22. 22. Developing a Positioning StatementPositioning statements summarizethe company or brand positioning  EXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference) 7 - 22 Goal 4: Realize how companies position their products
  23. 23. Communicating the PositioningCompanies must be certain toDELIVER their value propositions.Positions must be monitored andadapted over time. 7 - 23 Goal 4: Realize how companies position their products

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