Recommended
Recommended
More Related Content
Similar to Strategic Marketing EBMA 3715 Unit 4 (Chapter 4) PART 2
Similar to Strategic Marketing EBMA 3715 Unit 4 (Chapter 4) PART 2 (20)
More from TEAM SN
More from TEAM SN (14)
Recently uploaded
Recently uploaded (20)
Strategic Marketing EBMA 3715 Unit 4 (Chapter 4) PART 2
- 1. SEMESTER TEST 1 DATE: 25 FEBRUARY 2015 TIME: 5,6TH PERIOD 11:10 – 13:00 VENUES: A – Z, EXR 6 WORK: Unit 1-5 MARKS: 50 TIME: 90 Minutes FORMAT: Case study with application questions- Thus, you must know the theory very well!
- 5. Assignment for Unit 4: GROU Create an idea for a new TV show and present it in class. The following must be included in your presentation: •A description of your target market(s) •The target marketing approach & motivation. •The TV show’s competitive advantage & motivation. •The TV show’s position in the market & motivation •Describe which positioning method you used & motivation.
- 7. MARKET SEGMENTATION, TARGETING AND POSITIONINGCHAPTER 4
- 8. • Dividing consumer markets into various groups with similar needs and wants. Segmentation • Deciding which market segment’s needs can be satisfied by the company. Targeting • Creating an image of the product or brand in the mind of the consumer Positioning
- 9. P.G. 78
- 21. BENEFITS VS. DISADVANTAGES OF SEGMENTATION (PG. 78) Accuracy of customer needs Identify new opportunities Guidelines for development of separate market offerings and strategies segments Allocation of marketing resources Very expensive Limited market coverage Cannibalisation BENEFITS DISADVANTAGES
- 27. PREREQUISITES FOR MARKET SEGMENTATION {page 79 & 98} Measurable • Who is in segment Identifiable • How many potential customers Accessible • Reach target market Substantial • Worthwhile serving Meaningful • Needs
- 28. BEHAVIOURAL Variables such as usage rate and patterns, price sensitivity, brand loyalty and benefits sought. PSYCHOGRAPHIC Variables such as values, attitudes and lifestyle DEMOGRAPHIC Variables such as age, gender, ethnicity, education, occupation, income and family status. GEOGRAPHIC Regional variables such as region, climate, population density and population growth rate. Bases for segmentation
- 29. GEOGRAPHIC
- 32. DEMOGRAPHICS Age Gender Income Family life cycle stage Ethnicity Any combination of these factors Not limited to these factors, other: income, occupation, lifestyle, living standards (LMS)
- 33. DEMOGRAPHIC FACTORS LivingStandardsMeasure ment: A tool has been developed by SAARF (South African Advertising Research Foundation) to aid marketers in SOUTH AFRICA It measures social class, or living standards, regardless of race and without using income as a variable to segment the market
- 35. 0 2 4 6 8 10 12 14 16 % of SA adult population LSM 1 LSM 2 LSM 3 LSM 4 LSM 5 LSM 6 LSM 7 LSM 8 LSM 9 LSM 10 LSM = Living Standards Measurement
- 36. Summary Of New LSM® Groups LSM 1 (1.4%) DEMOGRAPHICS Male and female 50+ Primary Completed Small urban/ Rural Traditional Hut R1 480 ave household income per month MEDIA Radio a major channel of media communication; mainly African Language Services (ALS)- Umhlobo Wenene FM, Ukhozi FM and community GENERAL Minimal access to services Minimal ownership of durables, except radio sets Mzansi bank account Activities: minimal participation in activities, singing LSM 2 (3.6%) DEMOGRAPHICS Male and Female 15–24, 35-49 and 50+ Some High School Small urban/ Rural Squatter Hut Shack, Matchbox and Traditional Hut R2 216 ave household income per month MEDIA Radio: Commercial, mainly ALS-Ukhozi FM, Umhlobo Wenene FM GENERAL Communal access to water Minimal ownership of durables, except radio sets and stoves Mzansi bank account Activities: minimal participation in activities, singing, attend burial society meetings and traditional gatherings AMPS 2013 Jul’12-Jun’13
- 37. Summary Of New LSM® Groups LSM 5 (16.9%) DEMOGRAPHICS Male and Female with female bias 15-34 Some High School Small urban/ rural House, matchbox/ matchbox improved R4 310 ave household income per month MEDIA Radio: Commercial mainly ALS stations, Lesedi FM, Motsweding FM, Ukhozi FM, community radio TV: SABC 1,2,3, e.tv, Top TV GENERAL Electricity, water on plot, flush toilet outside TV sets, hi-fi/radio set, stove, fridge Mzansi accounts Activities: singing, bake for pleasure, go to night clubs, attend gatherings, buy lottery tickets LSM 6 (23.8%) DEMOGRAPHICS Male and Female 15-49 Matric Large Urban House/ townhouse, cluster house R6 669 ave household income per month MEDIA Wide range of commercial and community radio TV: SABC 1,2,3, e.tv, Top TV, Community TV Any AMPS Newspaper Outdoor GENERAL Electricity, water in home, flush toilet in home TV set, stove, fridge/freezer, microwave oven Savings and Mzansi accounts Activities: hire DVDs, go to night clubs, take away in the past 4 weeks, attend gatherings, buy lottery tickets, go to gym
- 38. Summary Of New LSM® Groups LSM 9 LOW (4.9%) DEMOGRAPHICS Male 35+ Matric and higher Urban R20 307 ave household income per month MEDIA Wide range of commercial and community radio TV: SABC 2,3, e.tv, M-Net, DStv, Top TV, Community TV Accessed internet past 7 days All print Cinema & Outdoor GENERAL Full access to services and bank accounts Full ownership of durables Increased participation in activities, excluding stokvel meetings LSM 9 HIGH (4.9%) DEMOGRAPHICS Male 35+ Matric and higher Urban R25 395 ave household income per month MEDIA Wide range of commercial radio TV: SABC 2,3, e.tv, M-Net, DStv, Top TV, Community TV Accessed internet past 7 days All print Cinema & Outdoor GENERAL Full access to services and bank accounts Full ownership of durables Increased participation in activities, excluding stokvel meetings
- 39. Summary Of New LSM® Groups LSM 10 LOW (3.4%) DEMOGRAPHICS Male and Female with a male bias 35+ Matric and higher Urban R32 451 ave household income per month MEDIA Wide range of commercial radio TV: SABC 3, M-Net, DStv, Top TV, Community TV All print Accessed internet past 7 days Cinema & Outdoor GENERAL Full access to services and bank accounts Full ownership of durables Increased participation in activities, excluding stokvel meetings LSM 10 HIGH (2.7%) DEMOGRAPHICS Male 35+ Matric and higher Urban R40 695 ave household income per month MEDIA Wide range of commercial radio TV: M-Net, DStv, Top TV, Community TV All print Accessed internet past 7 days Cinema & Outdoor GENERAL Full access to services and bank accounts Full ownership of durables Increased participation in activities, excluding stokvel meetings
- 40. Mpumalanga Eastern Cape Free State Gauteng KwaZulu-Natal Northern Cape North West Western Cape Limpopo Lsm 1- 4 Lsm 5 Lsm 6 Lsm 7 Lsm 8 Lsm 9 Lsm 10 % of Province that is Rural More than 60 % 31 to 60 % 11 to 30 % up to 10 % SAARF Universal LSM® By Province
- 44. GEODEMOGRAPHICS Clustering potential customers living in proximity who display similar demographical characteristics
- 46. PSYCHOGRAPHIC
- 47. BEHAVIOURAL Purchase occasions: regular vs. special occasion Benefit sought: Benefit consumer seek- emotional or economical User status: Non-users, ex-users, potential users or regular users Usage rate: Frequency Loyalty status: loyalty towards the organisation or its brand names Buyer readiness stage: Customer’s readiness to buy. Attitude towards the product: Negative vs. positive
- 52. Kona-Q : fast-casual niche of the restaurant industry Compete against fast food as well as more traditional sit down restaurants. TARGET MARKET SEGMENT STRATEGY Kona-Q focus on 1. families and 2. individuals. Most dinner service is for families. •As more households become two income families, the adults have less time to prepare meals. Going out to dinner eliminates the need to prepare a meal and offers time to catch up with each other. •The lunch business is driven by individuals. Many go out to lunch to get out of the work setting. Others have business meetings at lunch. This creates a large market of potential customers that is especially attractive. Families: forecasted to contribute 67% of the dinner time revenue. •Have 2.4 children •>$50K in household income •67% have an undergraduate degree •26% have graduate level coursework •Go out to eat 1.6 times a week •Dinners out are used as a meal replacement since neither parent has time to cook a meal at home •Sophisticated families that live within three miles of the site Individuals: comprise 69% of the lunch time revenue. •Ages 19-47 •Individual income average is $36,000 •72% of the individuals over 23 have an undergraduate education •Eat out 2.3 times a week •Young professionals that live near the location •Shoppers who patronize the nearby high rent stores
- 53. MARKET TARGETING
- 54. Evaluate Potential Target Markets (pg. 100) Step 1: Deciding on appropriate evaluation criteria Step 2: Weighting factors to reflect their importance Step 3: Assessing current position of each target market Step 4: Projecting the future position of each target market Step 5: Evaluating implications of possible future changes
- 55. Step 1: Deciding on appropriate evaluation criteria Market Attractiveness Competitive Attractiveness Market/customer factors Market position factors Economic and technological factors Economic and technological factors Competitive factors Capabilities of organisation Environmental factors Synergy with other segments
- 56. Step 3: Assessing current position of each target market Market attractiveness Competitive position Step 4: Projecting the future position of each target market Step 5: Evaluating implications of possible future changes
- 62. Undifferentiated Differentiated Concentrated Niche Mass customisation
- 68. POSITIONING
- 77. DEFINITION OF POSITIONING (PG. 106) Refers to the way consumers perceive a product in terms of its characteristics and advantages and its competitive position. It therefore involves the creation, in the minds of targeted buyers, of a distinctive position with regard to the organisation’s product relative to those of competing organisations.
- 81. CHARACTERISTICS Cavity/Decay Prevention White/Bright Teeth Fresh Breath Tartar Control Plaque Reduction Stain Remover Gum Disease Prevention Flavour/Great Taste Fun for Kids No Mess - pump, neat-squeeze Sensitive Teeth: Sensodine All-in-One: Aquafresh Low Price: shop brands, brands on sale
- 82. EXAMPLE OF POSITIONING MAP Brand B Brand C High tooth decay prevention Low tooth decay prevention Low plaque fighting High plaque fighting Brand A
- 85. ATTRIBUTE
- 86. BENEFIT
- 87. USER
- 88. COMPETITOR
- 89. PRODUCT CATEGORY
- 91. COMMON POSITIONING ERRORS Under-positioning Over-positioning Confused positioning Doubtful positioning
- 92. Marketers often need to reposition their brands or products as the market develops, competitors enter or exit, and customers’ expectations and needs change. Repositioning
- 98. Assignment for Unit 4: GROU Create an idea for a new TV show and present it in class. The following must be included in your presentation: •A description of your target market(s) •The target marketing approach & motivation •The TV show’s competitive advantage & motivation •The TV show’s position in the market & motivation and describe which positioning method you used & motivation.
- 99. Test 1 DATE: 25 FEBRUARY 2015 TIME: 5,6TH PERIOD 11:10 – 13:00 VENUES: A – Z, EXR 6 WORK: Unit 1-5 MARKS: 50 TIME: 90 Minutes FORMAT: Case study with application questions- Thus, you must know the theory very well!