• Save
Segmenting the market and finding your niche
Upcoming SlideShare
Loading in...5
×
 

Segmenting the market and finding your niche

on

  • 23,745 views

In this presentation our marketing guru at the Bizface UK business forum runs through the basics of segmentation. The presentation is equally applicable to online marketeers and tangible product ...

In this presentation our marketing guru at the Bizface UK business forum runs through the basics of segmentation. The presentation is equally applicable to online marketeers and tangible product manufacturers

Statistics

Views

Total Views
23,745
Views on SlideShare
23,647
Embed Views
98

Actions

Likes
16
Downloads
256
Comments
2

8 Embeds 98

http://www.slideshare.net 72
http://www.bizfaceworld.com 9
http://roymogg.com 7
http://www.bizface.co.uk 6
http://webcache.googleusercontent.com 1
http://translate.googleusercontent.com 1
https://dit-bb.blackboard.com 1
http://cursos.itesm.mx 1
More...

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Introduce me as final year PhD on organizational attachment in IT outsourcing. Explain background in IT and managing people remotely. Masters and doctoral research at Birkbeck revealing interesting issues about intranets and e-mail usage. (Possibly explain a little about organizational focus as I see all other talks are to do with shopping type stuff). Could get attention by asking how many of them class themselves as remote workers or work from home sometimes? Aim of the talk today is to highlight the problems (still) faced by managers and staff in these days of increased reliance on electronic communication, and suggest that information overload is not just a ‘stress/overwork’ issue but can lead to increased isolation for remote workers.

Segmenting the market and finding your niche Segmenting the market and finding your niche Presentation Transcript

  • Dr. Stephanie J. Morgan Lecture 3: Segmentation, targeting and positioning. Marketing Principles and Practice The full series will be available for download at: www.bizface.co.uk
  • Objectives of Lecture 3 Segmentation
    • Describe concepts and methods used in market segmentation and target marketing.
    • Outline factors that can be used to evaluate market segments
    • Explain the advantages of market segmentation and clear positioning.
    • Determine issues that arise from positioning and repositioning strategies.
  • Defining segmentation
    • The identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy. (Jobber, p.185)
    • A company needs to identify the market segments it can serve effectively . (Kotler, p.278)
  • 2 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill The advantages of market segmentation Understand The customer! Opportunities and threats Target market selection Market segmentation Tailored marketing mix Differentiation
  • Is segmentation always applicable?
    • Some mass marketing does not require segmentation.
    • To be useful, market segments should be:
    • Measurable
    • Substantial
    • Accessible
    • Differentiable
    • Actionable
    • Consider ethics, vulnerable or disadvantaged groups – possible backlash.
    • Consider also the impact of the Internet…
  • 3 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill The process of market segmentation and target marketing The disaggregated market The segmented market The target market The characteristics of individual customers are understood Customers are grouped into segments on the basis of having similar characteristics Segment 3 is judged to be most attractive and a marketing mix strategy is designed for that target market 1 2 3 1 2 3 Marketing mix targeted at segment 3 c 1 c 5 c 7 c 2 c 6 c 3 c 4 c 8 c 1 c 5 c 7 c 2 c 6 c 3 c 4 c 8 c 1 c 5 c 7 c 2 c 6 c 3 c 4 c 8
  • 4 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Segmenting consumer markets Consumer segmentation Behavioural Benefits sought Purchase occasion Purchase behaviour Usage Perceptions and beliefs Lifestyle Personality Demographic Socio-economic Geographic Psychographic Profile
  • Benefit Segmentation Causal not Descriptive factors Identify each Segment by benefits sought Total Configuration Of benefits differentiates Continue segmentation within Has practical marketing implications, provides fresh insight Into markets, requires extensive research or insight
  • Other Behavioural bases
    • Purchase occasion – emergency, routine, special, gifts…
    • Purchase behaviour – brand loyalty, innovators,
    • Usage – heavy, light, none,
    • Perceptions, beliefs and values.
    • Interrelated – need to combine segmentation variables.
  • Psychographic Lifestyle Young sophisticates, Traditional working class etc. Personality Extroverts, Introverts… More likely to be useful when brand choice is a reflection of self expression – symbolic, linked to identity
  • 13 D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill Life cycle stages At home single Young couple no children Young parents Middle-aged parents Empty nester married working Empty nester married retired Solitary retired Young divorced no children On own young Young divorced with children M-aged divorced no dep’nt children M-aged divorced with children Middle-aged married no children Middle-aged divorced no children On own middle-aged
  • 6 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Macro and micro segmentation of organizational markets Macrosegment 2 (medium-sized companies) Macrosegment 2 (prime choice criterion: convenience) Macrosegment 3 (small companies) Macrosegment 3 (prime choice criterion: price) Macrosegment 1 (large companies) Macrosegment 1 (prime choice criterion: reliability) Organizational market
  • 7 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Segmenting organizational markets Organizational size Industry Geographic location Macrosegmentation Organizational segmentation Microsegmentation Decision-making process Buy class Purchasing organization Organizational innovativeness Decision-making unit structure Choice
  • Alternative bases for segmenting Demographic: Industry, size, location Operating Variables: Technology, user status (heavy, light etc.,) customer capabilities Purchasing Approaches: Highly centralized/de-cent; Power structure (Eng/finance) Quality/service/price? Situational Factors: Need quick/sudden delivery Specific applications? Large/small orders? Personal Characteristics: Buyer-seller similarity? Risk Attitudes? Loyalty?
  • Evaluating Segments Market Attractiveness Market Factors: Growth, size, price sensitivity, barriers Competitive Factors : Type of competition, New entrants, differentiation Political, Social and Environmental Factors : Issues, Social Trends, public Concerns. Organizational Capability: Exploitable assets, Cost advantages, Technological edge, Managerial capabilities Balance
  • 8 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Target marketing strategies
    • Undifferentiated marketing
    • Differentiated marketing
    • Focused marketing
    • Customized marketing
  • Undifferentiated Strategy Example Post Office?
    • Product
    • Price
    • Promotion
    • Distribution
    Everybody ORGANISATION MARKETING MIX TARGET MARKET 10 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill
  • Utilitarian Customer Trendy- Casual Price shopper Mainstream Tradition- alist LEVI’s Marketing Mix 1 Marketing Mix 2 Marketing Mix 3 Marketing Mix 4 Marketing Mix 5 Example of Differentiated Strategy 12 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill
  • Example of Focused Strategy
    • Product
    • Price
    • Promotion
    • Distribution
    Cement Manufacturer Builders Merchants Independent DIY Shops National DIY Chains Unserved Unserved ORGANISATION MARKETING MIX 14 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill
  • Example of Customized Strategy Marketing Mix 1 Marketing Mix 2 Marketing Mix 3 Marketing Mix 4 Nissan Birdseye Heinz Levis Industrial Electronic Systems Supplier INDIVIDUAL MIXES ORGANISATION INDIVIDUAL CUSTOMERS 16 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill
  • 17 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Key tasks in positioning Where and how we compete 1. Market segmentation 2. Target market 3. Differentiated advantage Positioning
  • 18 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Keys to successful positioning Successful positioning Clarity Consistency Credibility Competitiveness
  • 20 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill A perceptual map of supermarkets High price Low price Narrow product range Wide product range A B C D X G E F
  • 21 D Jobber, Principles and Practice of Marketing, © 2001 McGraw-Hill Repositioning strategies Image repositioning Product repositioning Intangible repositioning Tangible repositioning Same Different Same Different Target market Product
  • Issues in Positioning and Repositioning
    • If four ‘keys’ are not taken into account can lose customers/clients:
    • Confused Positioning : too complicated, frequently changing, inconsistent/vague messaging.
    • Doubtful Positioning : low credibility.
    • Overpositioning : Buyers have too narrow an image of brand.
    • Underpositioning : No clear benefit/no competitive edge.
    • Gaining a differential advantage can be difficult…
    • If re-positioning poorly managed, can be worse off than before.
  • Services and Public Sector
    • Services even within a product based organization can be a key to positioning and differentiation – how do you want your target customers to view your services, how can you best create loyalty?
    • Some suggest positioning is more important for the service sector as it places the intangible into a more tangible frame of reference.
    • Targeting and positioning in the public sector can be just as important – the public may have different needs and respond to different messages (e.g. age, education, ethnicity).
  • Additional considerations? Ethics – social responsibility Unfair advantage of vulnerable or disadvantaged groups Segment interrelationships Segment by segment invasion plans Inter-segment co-operation
  • Objectives
    • Describe concepts and methods used in market segmentation and target marketing.
    • Outline factors that can be used to evaluate market segments
    • Explain the advantages of market segmentation and clear positioning.
    • Determine issues that arise from positioning and repositioning strategies.
  • Workshop on Segmentation
    • What are the advantages and disadvantages of market segmentation?
    • Carry out a benefit segmentation for the car manufacturing industry.
    • List the likely profiles of the resulting segments.
    • What ethical considerations relevant if sweet market targeting children?
  • Workshop aims and objectives
    • Aims:
    • Allow time to discuss and analyse ideas on market and benefit segmentation
    • Alert to ethical issues and concepts of civic positioning
    • Objectives:
    • Evaluate the market segmentation process
    • Apply and illustrate benefit segmentation
    • Assess the ethical implications of target marketing.
  • Workshop segmentation
    • Advantages of market segmentation?
    Identification of a target market Tailoring of marketing mix Develop differential marketing strategies between segments Creation of differential advantage
  • Disadvantages of targeting and segmentation?
    • Mostly to do with doing it badly!
    • Confused, doubtful, under-positioning, or over-positioning can all lead to loss of business.
    • Poor targeting and positioning of one product may impact upon another.
  • Car Industry Possible Examples ? ? Other? Morgan High Individualists Distinctiveness Catalytic Converters Environmental Compactness, good for Env. Mondeo Large family Space Sports cars Young males Performance BMW High income Status Punto Thrifty Economy Example Profile Benefits
  • Ethical Considerations
    • Special rules regarding targeting children.
    • Children susceptible to advertising, parents badgered…
    • Some backlash around tooth decay, obesity etc.
    This Presentation is at: www.bizface.co.uk for download