Implementation of STP in b2b marketing

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Book referred to :Marketing Management by Philips Kotler, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha

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Implementation of STP in b2b marketing

  1. 1. Meghashree Mohan
  2. 2. We can segment business markets with some of the samevariables we use in consumer markets such asGeography, Benefits sought ,Usages rate etcbut business markets use some other variables also Source: Marketing management by Kotler, Keller, Koshy, Jha Implementation of STPD in B2B marketing 2
  3. 3. Major segmentation variables for business market industry Which industry to focus? Company size What size of company to serve?Demographics location What geographical area to serve? technology What customer technology to focus?Operating User or non user status Heavy users, medium users, light users or no users?variable Customer capabilities Should we serve customers needing many or few services? Purchasing function Should we serve companies with highly centralized or decentralized purchasing power? organization Power structure Should we serve companies that are engineering dominated , financially dominated and so on?Purchasing Should we serve companies with which we have strong relationship or simply go after the Nature of exitingapproaches relationship most desirable companies? General purchasing policies Should we serve companies that prefer leasing, service contract, system purchasing? Sealed bidding? Purchasing criteria Should we serve companies that seeking quality ? Service ?price ? Urgency Should we serve companies that need quick and sudden delivery or service?Situational Specific application Should we focus on certain application of our products Ruther that all application?Factors Size or order Should we focus on large or small orders? Buyer seller similarities Should we serve companies whose people and values are similar to us?Personal Attitude toward risk Should we serve risk taking or risk avoiding customers?characteristics loyalty Should we serve companies that show high loyalty to their suppliers? Source: Marketing management by Kotler, Keller, Koshy, Jha 3
  4. 4. DEMOGRAPHY-Which Industry to serve? segmentation automobile Rubber tyre industry trucks Farm tractors Fork lift trucks aircrafts Implementation of STPD in B2B marketing 4
  5. 5. Operating values: Size of the firm or Enterprise Large orders Size and from large number of companies Large companies Medium Small Very small Implementation of STPD in B2B marketing 5
  6. 6. Segmentation basis demography and purchasing ability Micro segmentation (price , service & utility) (II) Macro segmentation Government hospitals Low (I) price & service Medical apparatus Medical collages More reliable and Private hospitals accurate Soil testing laboratory Laboratoryapparatus making industry Fertilizer testing laboratories Government labs Low price & service Tissue culture University labs laboratories More Private lab reliable and accurate Implementation of STPD in B2B marketing 6
  7. 7. Effective segmentation criteria:I. Measurable: The size, purchasing power are characteristic.II. Substantial: Large and profitable enough to serveIII. Accessible: effectively reached and served.IV. Differentiable: conceptually distinguished and respond differently to different marketing mixV. Actionable: effective program formulated for attracting and serving Implementation of STPD in B2B marketing 7
  8. 8. Market targetingAfter doing the market segmentation the firm has to evaluate the segment of theirmarket potential. Then the company has to decide which and how many segmentsto serve and how to serve them.I. Single segment concentrationII. Selective specializationIII. Product specializationIV. Market specializationV. Full market coverage Implementation of STPD in B2B marketing 8
  9. 9. Evaluating and Selecting The market Segments(i) single segment concentration M1 M2 M31)Single product in single market.2)The farm equipment division of MahindraAnd Mahindra concentrated on tractors, and P1Primarily targeted agriculture market. P23)The zodiac brand concentrates on formal P3shirts on executive and professionals.4)Some hospitals focus on certain therapeutic area, Heart specialty ,gynecologyetcThere are certain risk in single segment concentration :a particular marketsegment can become sour or a competitor may invade the segment. Source: Marketing management by Kotler, Keller, Koshy, Jha Implementation of STPD in B2B marketing 9
  10. 10. (ii) Selective specialization1) Specialized product in specialized M1 M2 M3 market.2) The firm attempts to serve all P1 customer group P2 P3 Source: Marketing management by Kotler, Keller, Koshy, Jha Implementation of STPD in B2B marketing 10
  11. 11. (iii) Product specialization M1 M2 M31)Single product in different markets2)The firms makes a certain product P1that it sells to several different marketsegments P23)E.g. A microscope manufacture , forinstance ,sells to university, government P3and commercial laboratories. Source: Marketing management by Kotler, Keller, Koshy, Jha Implementation of STPD in B2B marketing 11
  12. 12. (iv) Market specialization M1 M2 M3 1)Various products in single market. P1 2)The firm concentrates on serving many needs of a particular customer group or P2 market. P3 Source: Marketing management by Kotler, Keller, Koshy, Jha Implementation of STPD in B2B marketing 12
  13. 13. (v) Full market coverage 1) Different products in different markets. M1 M2 M3 2) The firm attempts to serve all customer group with all the products they might need. P1 3) It is possible for only the large firms 4) E.g. P2 a)Reliance :They have wide range of products in nearly all kind of markets. P3 Source: Marketing management by Kotler, Keller, Koshy, Jha Implementation of STPD in B2B marketing 13
  14. 14. Tyre Market SegmentationMarket Segmentation for the Tyre Industry is based on the type of vehicle served. Indian Tyre Industry Commercial Passenger Others Vehicles Vehicles IndustrialMHCV HCV LCV Cars Motorcycles Scooters Farm OTR VehiclesMHCV : Medium Heavy Commercial VehiclesHCV Heavy Commercial VehicleLCV Light Commercial VehicleOTR Off the Road Implementation of STPD in B2B marketing 14
  15. 15. Bridgestone - Market Specialization M1 M2 M3 (Cars) (Trucks) (2-wheelers) P1 Touring Tyres P2 Sport Tyres P3 Economy Tyres Bridgestone India has focused on the Passenger Car Segment exclusively as it offers only radial tyres. Implementation of STPD in B2B marketing 15
  16. 16. MRF : Compete Market Coverage M1 M2 M3 (Cars) (Trucks) (2-wheelers) P1 Touring Tyres Economy Tyres High Grip Tyres P2 Sport Tyres Mileage Tyres Touring Tyres P3 Economy Tyres Endurance Best Fit Tyres TyresMRF holds a diversified portfolio of products spanning the entire tyre market. Implementation of STPD in B2B marketing 16
  17. 17. PositioningBRIDGESTONE:Communication : High Performance, Top Quality & International standard.Punch line: Passion for ExcellenceThis communication is substantiated by association to F1 racingCommunication : Superior Endurance, Strength, Sporty & Home-GrownPunch line: Tyres with MuscleSponsors Cricket & Rally racing to position as high endurance and sporty Implementation of STPD in B2B marketing 17
  18. 18. Segment by segment invasion plans Customer group/markets Airlines Passenger Goods (market 1) transport transport (market 2) (market 3) Large computers A,B B B Product varieties (product 1) Midsize computers A (product 2) Personal computers A (product 3) C Company A Company B Company C18 Implementation of STPD in B2B marketing Source: Marketing management by Kotler, Keller, Koshy,
  19. 19. DIFFERENTIATION The process of distinguishing the differences of a product or offering from others, to make it attractive to a particular target market. Source of competitive advantage. The objective of diffrentiation is to develop a position that potential consumers see as unique.
  20. 20. 11/19/2012 Implementation of STPD in B2B marketing 20

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