Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Target Market• A target market is a group of  customers that the business  has decided to aim its  marketing efforts and  ...
Example• Rolls-Royce
Commercial
• Market segmentation is the division of A  market into different groups of customers with  distinctly similar needs and p...
Market segmentation Activities                                             3                                           Sel...
Needs or Desired and benefitsPurchase BehaviorValues/ Lifestyle MeasureClassifying Characteristics
1. Needs/ Benefits Sought    • Needs and benefits are the characteristics      or attributes of product that consumer     ...
Needs/ Benefits Soughti. Multi-Item Scale: To know how important or    unimportant each benefit is to consumer.ii. Conjoin...
Conjoint AnalysisIdentification of Relevant Behavior 1   To specify which attribute is important to study; e.g: Pizza Hut ...
•   When and where consumed•   The nature of situation•   What type•   The quantity consumed•   Brand color, and size
Rooh Afza in RamazanEXAMPLE: BEHAVIORALMEASURES
3. Values/ Lifestyle MeasureAnalyzing consumers’ activities,interests, and opinions, we canunderstand individual lifestyle...
4. Classifying CharacteristicsDemographic   • Key variables concern                age, sex, occupation, level of         ...
• Geographic   • In many situations the needs of                 potential customers in one geographic                 are...
Commercial
Evaluate the Market SegmentsThe market segments are studied against the five criteria:                  1       Uniqueness...
Uniqueness • Uniqueness refers to large between-   group differences in the segments. • The best basis for forming market ...
Responsiveness  • If specific strategies and tactical     actions are made for the specific     segment, it is expected th...
Actionability • Actionability is the extent to which the   manager can take action on the results   of the segmentation an...
Stability• The segment should be stable over  time with respect to desired end  benefits and classification factors.• It i...
Profitability • The segment should have enough   potential to contribute towards the   organization’s objective and purpos...
Segment Strategy• The last step in segmentation is to select a  segmentation strategy.• It must be decided whether to take...
Examining Competitive    Market Forces.
Examining Competitive Market Forces.                           (Emphasis on first three)•   What are the fundamental chara...
Examining Competitive Market Forces.Creating a market Profile: Deals with industrycharacteristics such as:    –   Size and...
Perceptual Map (Fig 4-6)• Large                                                               • High Quality  portion     ...
Perceptual Map (Q# 10)•   Night life                           • Weather               Miami•   Sports                    ...
Perceptual Map (Q# 10)Conclusion: Further create similar attributes as in the City  New York, San Francisco. Such as:    ...
THANK YOU!
Target market & Competitive Advantage
Upcoming SlideShare
Loading in …5
×

Target market & Competitive Advantage

4,669 views

Published on

This Chapter covers and gives you the idea of terms related to Market Segmentation, Target marketing & Competitive Market Forces along with the examples to make the idea more clearer. The blank slides contains the commercials, Which might not be visible. Instead the links for commercials will be provided on requests.

Published in: Business
  • Be the first to comment

Target market & Competitive Advantage

  1. 1. Target Market• A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise
  2. 2. Example• Rolls-Royce
  3. 3. Commercial
  4. 4. • Market segmentation is the division of A market into different groups of customers with distinctly similar needs and product/service requirements.• Market segmentation is the division of a mass market into identifiable and distinct groups or segments, each of which have common characteristics and needs and display similar responses to marketing actions.
  5. 5. Market segmentation Activities 3 Selection Of Segmentation 2 Strategy Evaluation Of The Market Segments 1 Formation And Profiling Segments
  6. 6. Needs or Desired and benefitsPurchase BehaviorValues/ Lifestyle MeasureClassifying Characteristics
  7. 7. 1. Needs/ Benefits Sought • Needs and benefits are the characteristics or attributes of product that consumer seeks or consider important. Example: • Nokia Mobiles
  8. 8. Needs/ Benefits Soughti. Multi-Item Scale: To know how important or unimportant each benefit is to consumer.ii. Conjoint Analysis: the qualities of product or service that are most desired by the customers. a) Identification of Relevant Behavior b) data Collection c) Data Analysis
  9. 9. Conjoint AnalysisIdentification of Relevant Behavior 1 To specify which attribute is important to study; e.g: Pizza Hut (Price, Delivery Time, Type of Crust or Split Toppings)Data Collection: 2 Collect the data by given levelData Analysis: 3 Analyze the Data.
  10. 10. • When and where consumed• The nature of situation• What type• The quantity consumed• Brand color, and size
  11. 11. Rooh Afza in RamazanEXAMPLE: BEHAVIORALMEASURES
  12. 12. 3. Values/ Lifestyle MeasureAnalyzing consumers’ activities,interests, and opinions, we canunderstand individual lifestyles andpatterns of behavior, which in turnaffect their buying behavior anddecision-making processes. On thisbasis, we can also identify similarproduct and/or media usage patterns.
  13. 13. 4. Classifying CharacteristicsDemographic • Key variables concern age, sex, occupation, level of education, religion, social class, and income characteristics, many of which determine a potential buyer’s ability to purchase a product or service.
  14. 14. • Geographic • In many situations the needs of potential customers in one geographic area are different from those in another area. This may be due to climate, custom, or tradition.
  15. 15. Commercial
  16. 16. Evaluate the Market SegmentsThe market segments are studied against the five criteria: 1 Uniqueness 2 Responsiveness 3 Actionability 4 Stability and 5 Profitability
  17. 17. Uniqueness • Uniqueness refers to large between- group differences in the segments. • The best basis for forming market segments is to creates segments that are more unique. • The objective is to achieve competitive power. • The more unique the segments are, the easier It is to translate the segmentation result into strategic and tactical actions.
  18. 18. Responsiveness • If specific strategies and tactical actions are made for the specific segment, it is expected that the segment would be more responsive to those actions than other segments. • For example Pleasure travelers may respond to price change whereas business travelers may not.
  19. 19. Actionability • Actionability is the extent to which the manager can take action on the results of the segmentation analysis. • Actionability expresses the notion that the segment targeted must be of an appropriate size for the company. For Example • A need-based segment is made to cater a particular group of patients.
  20. 20. Stability• The segment should be stable over time with respect to desired end benefits and classification factors.• It is not necessary that same people remain in the segment.• People with the needs identified by the segment should have same classification characteristics.
  21. 21. Profitability • The segment should have enough potential to contribute towards the organization’s objective and purpose of existence.
  22. 22. Segment Strategy• The last step in segmentation is to select a segmentation strategy.• It must be decided whether to take mass marketing approach or segmented approach.• Segmented approach is further divided as single segment approach or multiple segment approach.• Single segment: Porsche• Multiple segment: Chevrolet, Toyota
  23. 23. Examining Competitive Market Forces.
  24. 24. Examining Competitive Market Forces. (Emphasis on first three)• What are the fundamental characteristics of my industry? Creating a market profile• Who are my competitors? Perceptual• What are the current positions of my competitor? mapping• What moves are my competitor most likely to make?• What moves can we make to achieve a sustainable competitive advantage?
  25. 25. Examining Competitive Market Forces.Creating a market Profile: Deals with industrycharacteristics such as: – Size and growth rate of the industry – Substitute products – Suppliers to the industry – Principal customers – Manufacturing and distribution – Barriers to entry – Social and economic conditions affecting the industryPerceptual Mapping: Also known as product positioningmap. Who are my competitors & what are their current positions?
  26. 26. Perceptual Map (Fig 4-6)• Large • High Quality portion • Quiet Dave’s Hill Top West View• Low Price • Pleasant• Fast Service atmosphere • Accessibility Rusty • Wide Scupper selection Perceptual mapping most likely ask consumers to rate brands with more than two attributes
  27. 27. Perceptual Map (Q# 10)• Night life • Weather Miami• Sports New York• Shopping• Dining Las Vegas• Culture San • Safety San• Museum Francisco Antonio• Sightseeing CITY TOURISTS Las Vegas 8,756 Miami 2,620 New York 17,411 San Antonio 840 San Francisco 9,375
  28. 28. Perceptual Map (Q# 10)Conclusion: Further create similar attributes as in the City New York, San Francisco. Such as:  Shopping facilities  Sigh seeing  Museums  Sports & Nightclubs
  29. 29. THANK YOU!

×