Chapter 8-10 - amoroso, wong, co, esteban, lim, oracion

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Identifying Market
Segments and Targets
Chapter 8…
Amoroso , Arem
Wong, Audren

• Target Marketing
• Market Segment
• Consumer characteristics and responses
– Geographic Segmentation
• Grassroots marketing
– Demographic Segmentation
– Multicultural marketing
– Psychographic Segmentation
– Behavioral Segmentation
• Combining data for richer consumer description
• Not all segmenting schemes are useful
• Steps in the Segmentation Process
• Selecting Market Segments
OUTLINE

Concept 1: Target marketing
• Why Segment the Market?
• Companies cannot connect with all customers in
large, broad, or diverse markets
• “To compete more effectively…[companies] are now
focusing on those consumers they have the greatest
chance of satisfying.”
Examples:
Kotler: Club Med – catering to young couples, adventure
seekers
Local: Cebu Pac – catering to “budget” commuters
RP medical application: Different specializations – catering
to specialized needs

• Segmentation:
– Identify and profile market segments
– Select market segment(s) to enter
– Establish and communicate distinctive benefit(s)
of the company’s market offering
• Market segments
– Large, identifiable groups within a market
– Group of customers who share a similar set of
needs and wants
Definition of Terms

Concept 2: Bases for Segmenting
Consumer Markets
• Consumer
Characteristics
• Consumer Responses
• Geographic
• Demographic
• Psychographic
• Behavioral Response
– Benefits
– Usage
– Brands

Consumer Characteristics

Concept 3: Geographic
Segmentation
• Divide into geographical units
– Kotler/Local: Nation, States, Regions, Countries, Cities,
Neighborhoods
– Medical Application: Medical Diagnostics Hubs in densely
populated areas

• Getting as close and personally relevant to
individual customers as possible
– Kotler: Nike (sponsorship of local school teams, expert-conducted
clinics, provision of shoes, clothing, equipment); Citibank and
neighborhood demographics, Curves
– Local: GK – customized approached to different beneficiaries
– Medicine: Gov’t Medical Missions
Concept 4: Geographic Segmentation
(Grassroots marketing)

– Kotler: Crest and Colgate to age and life cycle
stage (kids, adults, older consumers), Pampers
– Local: Dove deodorants for men/women, Bench -
Herbench
– Medical: Belo, Hospitals (Paying and Charity
Wards)
Concept 5: Demographic
Segmentation

• recognizing that different ethnic and cultural segments
have different needs and wants that require targeted
marketing activities
• Can result in different marketing messages, media,
channels, etc.
– Kotler: McDonalds “I’m Loving It” rooted in hip-hop culture;
– RP: LGBT
– Medical: Topic conferences in TMC, “Patient Partner”
Concept 6: Multicultural
Segmentation

• Psychographics
– Using psychology and demographics to better understand
consumers
– Grouped on the basis of psychological/personality traits,
lifestyle, or values
Kotler: Canadian Airports - Actualizers
Local: BDO – “We find ways” targeting young professionals who are
“Achievers”
RP medical application:
Minimal Invasive Surgeries – for successful people “Achievers”
and “Innovators”, Who is willing to avail of latest medical
treatments made available in the Philippines (e.g. Stem cell) for
Innovators
Concept 7: Psychographic
Segmentation

Consumer Responses

• Based on knowledge of, attitude toward, use of, or
response to a product.
– Needs and benefits
– Decision Roles
– User and Usage
– Buyer-Readiness Stage
– Loyalty Status
Kotler: ICI – Selling paints to wife
Local: Safeguard – targeting mothers
RP medical application: Doctors – Identifying Gatekeepers
(Moms) to improve patient compliance
Concept 8: Behavioral
Segmentation

Combination of Data

• Kotler: PRIZM (Potential Rating Index by Zip
Markets)
• Medical: Diagnostic Packages, Medicines for senior
citizens
• Demographic variables are the most important,
followed by the operating variables – down to the
personal characteristics of the buyer
Concept 9: You can combine data
to yield even richer descriptions
of consumers

• Needs-Based Segmentation
• Segment Identification
• Segment Attractiveness
• Segment Profitability
• Segment Positioning
• Segment “Acid Test”
• Marketing-Mix Strategy
Concept 10: Steps in the
Segmentation Process

Market Targeting

• Undifferentiated/ Mass marketing
– Goes after the whole market with one offer
– Appropriate when all consumers have roughly same
preferences
• Kotler: Model T-Ford has only one color, black
• Local: Magic Sarap for Filipino households
• Medical: Multivitamin commercials
– High potential, lower cost, lower prices, higher margins
• Differentiated marketing
– Groups of consumers with different wants/needs
– Fine-tune marketing program/activities
• Kotler/Local: Estée Lauder, Clinique
• Medical: Met, skin-whitening products
Concept 11: Selecting
market Segments
(Targeting)

• Multiple Segment Specialization
– Selective Specialization
– Selects a subset of all the possible segments, each objectively
attractive an appropriate
– Little or no synergy
• Kotler: Crest Whitestrips
• Product specialization
– Selling a product to several different market segments
• Kotler: Microscopes sold to university, government, and commercial
laboratories
• Medical: Braun products in medical schools and hospitals (e.g. IV
needles)
market Segments
(Targeting)

• Market specialization
– Serving many needs of a particular customer group
• Kotler:
• Local/Medical: Braun medical skills training in medical schools
• Single Segment Specialization
– Marketing to only one segment
– Niche - narrowly defined customer group seeking a distinctive mix
of benefits within a segment (subsegments)
• Kotler: Porche on sports car market, Volkswagen on small-car market
• Local: Luxury Cars (Ferrari, Maserati)
• Medical: Molecular Medicine
market Segments
(Targeting)

• Individual Marketing
– Ultimate level of segmentation leads to “segments of one,”
“customized marketing,” or “one-to-one marketing”
– Kotler: use of internet: eBay, iTunes, Amazon,
– Local: OLX, Project Pie
– Medical: TMC: Personalized Medicine
market Segments
(Targeting)

• Target marketing includes three activities: market
segmentation, market targeting, and market positioning
• Market segments are large, identifiable groups within a market.
• Two bases for segmenting consumer markets are consumer
characteristics and consumer responses.
• The major segmentation variables for consumer markets are
geographic, demographic, psychographic, and behavioral.
Marketers use them singly or in combination
• To be useful, market segments must be measurable, substantial,
accessible, differentiable, and actionable
• We can target markets at four main levels: mass, multiple
segments, single (or niche) segment, and individuals.
• A niche is a more narrowly defined group. Globalization and the
Internet have made niche marketing more feasible to many.
SUMMARY

Chapter 9: Creating Brand
Equity
CO & ESTEBAN
2017, ASMPH

Outline
• What is a brand?
• Role of brands
• Scope of Branding
• Brand Equity
• Brand Asset Valuator
• Brand Resonance Model
• Brand Elements

Outline
• Brand Elements Choice Criteria: Brand Building
• Brand Elements Choice Criteria: Defending
• Brand Contact
• Internal Branding
• Leveraging Secondary Information
• Managing Brand Equity: Brand Reinforcement
• Brand Extensions
• Brand Portfolios

Concept 1
What is a brand?
Is a NAME, TERM, SIGN, SYMBOL,
DESIGN, or some combination of
these elements, INTENDED TO
IDENTIFY THE GOODS AND
SERVICES of one seller or group of
sellers and to DIFFERENTIATE them
from those of competitors

Concept 1
What is a brand?
Kotler: ESPN
Local: Jollibee
Belo Medical Group

Concept 2
The Role of Brands
1. IDENTIFY THE SOURCE OR MAKER OF A
PRODUCT and allow customers to
ASSIGN RESPONSIBILITY OF ITS
PERFORMANCE to a manufacturer or
distributor
2. Offers LEGAL PROTECTION for UNIQUE
FEATURES OR ASPECTS of the product
3. A credible brand signals a LEVEL OF
QUALITY so that satisfied clients CAN
EASILY BUY the product again

Concept 2
The Role of Brands
Kotler: New Coke vs. Classic Coke
Local: Lucky Me! Pancit Canton
The Medical City

Concept 3
Scope of Branding
Branding is endowing products and
services with the POWER OF A BRAND.
CREATION OF MENTAL STRUCTURES,
CLARIFIES THE CUSTOMER’S DECISION
MAKING and, in the process, PROVIDES
VALUE TO THE FIRM.

Concept 3
Scope of Branding
Kotler: Shaun White
Local: Joy Dishwashing Liquid
Manny Pacquiao

Concept 4
Brand Equity
• added value endowed on products
and services, which may be
reflected in the way consumers,
think, feel, and act with respect to
the brand.

Concept 5
Brand Asset Valuator

?

CPG
s
Clinical
Trials
Old
Guidelines
Theories

Concept 6
Brand Resonance Model

Concept 7
Brand Elements
Brand elements are devices, which
CAN BE TRADEMARKED, that
IDENTIFY AND DIFFERENTIATE the
brand.

Concept 7
Brand Elements
Kotler: Nike “Just Do It”
Local: Datuputi “Mukhasim”
South Star Drug “Mapagkakatiwalaang
Tunay”

Concept 8
Brand Elements Choice
Criteria: Brand Building
1.MEMORABLE – do consumers
recall and recognize brand
element?
2.MEANINGFUL – is the brand element
credible?
3.LIKABLE – how aesthetically
appealing is the brand element?

Concept 8
Brand Elements Choice Criteria:
Brand Building
Kotler: Meaningful – Mop & Glo floor wax
Local: Meaningful – Mr. Clean Detergent bar
Meaningful – Lesofat– anti-obesity pills

Concept 9
Brand Elements Choice
Criteria: Defensive
1.TRANSFERABLE – can the brand
element introduce new products
in the same or different
categories?
2.ADAPTABLE
3.PROTECTABLE –Names that are
synonymous with product categories
should retain their trademark rights
and not become generic

Concept 9
Brand Elements Choice Criteria:
Defensive
Kotler: Protectable - Kleenex
Local: Protectable - Pampers
Protectable - Robitussin

Concept 10
Brand Contact
• Any information-bearing experience,
whether positive or negative, a
customer or prospect has with the
brand, its product category, or its
market.

Concept 11
Internal Branding
Marketers must now “walk the walk”
to deliver the brand promise.
Internal branding consists of
activities and processes that help
INFORM AND INSPIRE EMPLOYEES
about brands.

Concept 11
Internal Branding
Kotler: Disney – seminars on “Disney Style”
Local: Lamoyan Corporation
Pharma Companies

Concept 12
Leveraging Secondary
Information
• Create brand memory by linking the
brand to other information in
memory that conveys meaning to
consumers

Concept 13
Managing Brand Equity:
Brand Reinforcement
A brand needs to be carefully managed
so its VALUE DOES NOT DEPRECIATE.
Conveying the brand’s meaning in terms of
(1) products it represents, what core
benefits it supplies, and what needs it
satisfies (2) how the brand makes
products superior should exist in
consumers’ minds.

Concept 13
Managing Brand Equity: Brand Reinforcement
Kotler: Nivea – product extensions “mild”,
“gentle” and “caring”
Local: Yakult – everyday okay
Robitussin – Hagod Robitussin

Introducing a host of NEW PRODUCTS
under their STRONGEST BRAND
NAMES.
Concept 14
Brand Extensions

Concept 14
Brand Extensions
Kotler: Crayola – twistable crayons, biggie
crayons
Local: Lucky Me – Calamansi, Spicy, Sweet
and Spicy
RP medical application: Buscopan - Venus

Concept 15
Brand Portfolios
Flankers
Low-end
Entry-level
High-end
Prestige
Cash Cows

• Schools and Scholarships?
• Value meals?
• Stores in SM?

Thank You!

CRAFTING THE BRAND
POSITIONING
Turning every product into the
best product ever!
Lim, Josephine Alexandra
Oracion, Vince
Chapter 10

Outline:
• Positioning
• Category Membership
• Industry
• Red VS Blue Ocean Thinking
• Points of Differences
• Points of Parity
• Brand Mantra
• Competitive Advantage
• Emotional Branding
• Cultural Branding
• Brand Journalism

Concept 1
No company can win if its
products and services
resemble every other (p.277)
• Kotler
– Method products: original idea. Bottle built to let
soap flow out the bottom, so users would never
have to turn it upside down
• Local
– Mang Inasal: Unlimited rice
• Medical
– ASMPH, The Medical City: “Patient Partner”

Concept 2
Positioning (p.276)
Kotler: Entertainment Weekly, Method
Products
Local: Zalora
RP medical application: Belo

Def’n: defines which other brands
competes it with
•Kotler
– AT&T, Verizon, Sprint
•Local
– Globe, Smart, Sun
•Medical
– The Medical City, St Lukes Global, Makati Medical
Center
Concept 3: The
competitive frame of
reference

Concept 4
Category Membership (p.277)
Kotler: Pepsi, Cocola
Local: Globe, Smart
Mercury Drug Store, South Star Drug

Concept 5
Industry (p.278)
Kotler:
Local: Coffee Industry, Fast Food
Industry
Pharmaceutical Industry

• Which of the factors that our
industry takes for granted should we
eliminate?
• Which factors should we reduce
well below the industry’s standard?
• Which factors should we raise well
above the industry’s standard?
• Which factors should we create
that the industry has never offered?
Concept 6: 4 Questions for
Blue-ocean thinking

Concept 6
Red Ocean vs Blue Ocean
Thinking (p.278)
Kotler: Callaway Golf’s “Big Berta”
Local: Smart VS Globe, Uber, C2
RP medical application: Berocca VS
Centrum

Concept 7
Points of Differences (p.280)
Def’n: attributes or benefits that consumers
strongly associate with a brand, positively
evaluate, and believe they could not find to
the same extent with a competitive brand.
Must be:
- Desirable to consumer
- Deliverable by company
- Differentiating from competitors

Concept 7
Points of Differences (p.280)
Kotler: Apple, Nike, Southwest
Airlines, VISA vs American Express
Local: Safeguard, SM
RP medical application: ASMPH, TMC

Concept 8
Points of Parity (p.280)
Def’n: attribute or benefit associations
that are not necessarily unique to
the brand but may in fact be shared
with other brands.
2 types:
- Category POPs = must have’s
- Competitive POPs = overcome
weakness

Concept 8
Points of Parity (p.280)
Kotler: Miller Lite Beer, VISA vs
American Express
Local: San Miguel Light, Coke Zero,
Pepsi Max
RP medical application: Generic Drugs,
Diagnostic Packages

Def’n: It is not uncommon for a brand to
identify more than one actual or potential
competitive frame of reference
•Kotler
– Starbucks vs McDonalds (quick serve); vs
supermarket brands (coffee); vs local coffee shops
•Local
– Can be the same (Starbucks in the Philippines)
•Medical
– Hospitals vs diagnostic clinics; vs wellness clinics;
vs other hospitals
Concept 9: Multiple frames of
reference:

Concept 10
Brand Mantra (p.284)
Def’n: articulation of the heart and
soul of the brand and is closely
related to other branding concepts
like “brand essence” and “core brand
promise.

Concept 10
Brand Mantra (p.284)
Kotler: Nike, Disney
Local: SM
RP medical application: The Medical
City

Concept 11
Competitive Advantage
(p.289)
Kotler: Progressive, YouTube
Local: Smart, National Bookstore
RP medical application: ASMPH

• Employee differentiation
– GE, Pfizer, Cisco: better trained employees
• Channel differentiation
– Dayton (pet food): besides supermarket, sell also
through vegetarians, breeders, and pet stores
• Image differentiation
– Marlboro: macho cowboy
• Service differentiation
– Jollibee: fast and cheap
Concept 12: 　 Means of
Differentiation

Concept 13
Emotional Branding (p.290)
Kotler: Crayola, Kellogg’s, Mederma
Local: Mcdo, Dove
RP medical application: Vick’s, TMC

Concept 14
Cultural Branding (p.292)
Kotler: ESPN Zone Restaurants
Local: PLDT, LBC, Coke Sakto
RP medical application: HPV Vaccine

Concept 15
Brand Journalism (p.292)
Kotler: Mcdo
Local: Globe, Red Bull
RP medical application: TMC

• Concept 1: Be different
• Concept 2: That special something
• Concept 3: Know your playing field
• Concept 4: Who can substitute me?
• Concept 5: Industry
• Concept 6: Enemy VS Frienemy
• Concept 7: What makes us unique
• Concept 8: What makes us similar
• Concept 9: What else are we known for
SUMMARY

• Concept 10: Credo
• Concept 11: What makes you stand out?
• Concept 12: How do you stand out?
• Concept 13: Tap the feelings!
• Concept 14: Tap into society!
• Concept 15: Packaging oneself
SUMMARY

Summary:
• Study yourself and your competitor!
• Determine the your playing field – similarities &
differences!
• Keep eyes open for all competitors – those close by
and those latent!
• Differentiate the brand!
• Tap all things possible: emotion, culture!
• Create a buzz!!

Chapter 8-10 - amoroso, wong, co, esteban, lim, oracion

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