Session 13  MG220 BBA - 29 Sep 10
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Session 13 MG220 BBA - 29 Sep 10

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Session 13

Session 13
MG 220 Marketing Management
BBA Sec C

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Session 13  MG220 BBA - 29 Sep 10 Session 13 MG220 BBA - 29 Sep 10 Presentation Transcript

  • Part 3: Connecting with Customers
    > Market Targeting
    Part 4: Building Strong Brands
    > Overall review of Part 4
    > Discussion on Term Project
    Class Presentation | Session 13 | 29 Sep 2010
  • Market Targeting
    Marketers job is to identify segments and select which ones to target
    Segments are identified => Now selecting which ones to target
    More and more refinement helps identify smaller, more focused segments and
    Better target them
    MG 220 Marketing Management
    2
  • Market TargetingEffective Segmentation Criteria
    Market segments must rate favorably on following criteria:
    Measurable
    Size, purchasing power, characteristics can be measured easily
    It should not be vague
    Substantial
    Large & profitable enough to serve
    Worth going after with a tailored marketing program/effort
    Accessible
    Can be effectively reached and served
    Differentiable
    Conceptually distinguishable
    Respond differently to different marketing-mix elements
    Actionable
    Effective programs can be formulated for that particular segment
    MG 220 Marketing Management
    3
  • Market TargetingEvaluating and Selecting the Market Segments
    Evaluation process
    Based on five criteria (mentioned previously)
    Vis-à-vis two factors:
    Segment’s overall attractiveness
    Company’s objectives and resources
    A company must evaluate segments carefully by answering all criteria clearly and ensuring that it is favorable
    MG 220 Marketing Management
    4
  • Market TargetingEvaluating and Selecting the Market Segments
    Selecting Market Segments
    Selection is done based on evaluation of market segments
    Five different patterns are used:
    Single-segment concentration
    Selective Specialization
    Product Specialization
    Market Specialization
    Full Market coverage
    (illustrations ahead are in a grid pattern showing M-Market vs. P-Product)
    MG 220 Marketing Management
    5
  • Market TargetingEvaluating and Selecting the Market Segments
    1. Single-segment concentration
    Pick only one segment
    Focus on it and achieve leadership and thus
    Have high returns of investment
    Downside:
    Too much dependency implies increased risk
    Generally:
    Companies tend to operate in more than one segment
    Helps diversify and absorb costs in a better way
    Concept of Supersegments: Segments sharing exploitable similarities: Companies try to operate in supersegments too
    MG 220 Marketing Management
    6
  • Market TargetingEvaluating and Selecting the Market Segments
    2. Selective Specialization
    Pick different segments having no synergy
    Each is objectively attractive and appropriate
    Different approaches can be:
    Different products in different markets (as in fig.)
    Different segments (totally isolated from each other)picked for one product
    MG 220 Marketing Management
    7
  • Market TargetingEvaluating and Selecting the Market Segments
    3. Product Specialization
    Focus on one product
    Offered across all markets (segments)
    Too much focus on product alone
    What if product is replaced by a betterproduct or technology?
    Example: Kodak’s camera films
    MG 220 Marketing Management
    8
  • Market TargetingEvaluating and Selecting the Market Segments
    4. Market Specialization
    Focus on one market
    Focus is on serving as many needs of that market
    Again, too much dependency on one area
    What if this market is not able to grow?
    Example: Institutes too much focused onaccounting market (CA, ACCA, CAT etc.) Had to diversify into finance programs (CFA, CISA)
    MG 220 Marketing Management
    9
  • Market TargetingEvaluating and Selecting the Market Segments
    5. Full Market Coverage
    Serve all customer segments for all their needs
    Very hard to do. Generally large firms can do it only
    E.g. Microsoft (software market)
    Two broad strategies/approaches:
    Undifferentiated Marketing: Firm ignores segmentdifferences and offers one product to all
    Coke’s 300 ml bottle example applies here
    Differentiated Marketing: Different products fordifferent segments – still covering all segments
    Microsoft targeting different segments in software market differently
    MG 220 Marketing Management
    10
  • Market TargetingEvaluating and Selecting the Market Segments
    Managing Multiple Segments
    Using segment managers
    Each is responsible for growth and profitability of own segments
    Differentiated Marketing Costs
    In differentiated marketing (targeting different segments with different products), higher sales are possible than undifferentiated marketing but costs are also increased.
    Product modification costs
    Manufacturing costs
    Administrative costs
    Inventory costs
    Promotion costs
    Marketers need to understand the trade-off and be cautious of segmentation (particularly over-segmentation)
    MG 220 Marketing Management
    11
  • Market TargetingAdditional Considerations
    Segment-by-Segment invasion plans
    Recommended: enter one segment at a time
    Add more with time
    Segment-by-segment invasion plans should be kept as confidential as possible
    Companies at times fail todevelop these plans
    How to enter blocked markets:Concept of megamarketing
    MG 220 Marketing Management
    12
  • Market TargetingAdditional Considerations
    Updating Segmentation schemes
    Market segmentation analysis should be done periodically because business environment change
    How consumer attributes change and understanding of it helps update market segmentation
    Ethical choice of market targets
    Ensuring that marketing efforts are not exploiting vulnerable groups in society
    OR promoting harmful products
    MG 220 Marketing Management
    13
  • Part 4: Building Strong Brands
    > Overall review: Part 4
    Class Presentation | Session 13 | 29 Sep 2010
  • Part 4: Building Strong Brands
    Chap 9: Creating Brand Equity
    What is Brand Equity?
    Building Brand Equity
    Measuring Brand Equity
    Managing Brand Equity
    Devising a Branding Strategy
    Chap 10: Crafting the Brand Positioning
    Developing and Creating a Positioning Strategy
    Differentiation Strategies
    Product Life-cycle marketing strategies
    Market Evolution
    Chap 11: Dealing with Competition
    Competitive forces
    Identifying Competitors
    Analyzing Competitors
    Competitive Strategies for Market Leaders
    Other Competitive Strategies
    Balancing Customer and Competitor Orientations
    MG 220 Marketing Management
    15
  • Discussion on Term Project
    Two Projects 10%
    Individual Project 3%
    Project Report
    Individual Presentation (5 mins.)
    2-weeks beginning Oct 5, 2010
    1 x deliverable | 1 x presentation
    Team Project 7%
    Teams of 4 individuals each
    Project Report
    Team Presentation
    4-weeks project beginning Oct 19,2010
    3 x deliverables | 1 x presentation
    MG 220 Marketing Management
    16
  • Part 4: Building Strong Brands
    > What is Brand Equity?
    > Building Brand Equity
    > Measuring Brand Equity
    > Managing Brand Equity
    > Discussion on Mid-Term I
    Class Presentation | Session 14 | 5 Oct 2010