Segment targeting & positioning
•Download as PPSX, PDF•
8 likes•2,881 views
The document discusses key concepts in target marketing including market segmentation, market segments, market targeting, and product positioning. It provides examples of how companies like Procter & Gamble segment markets by identifying different niches within segments and offering varied product formulations. It also outlines the steps in target marketing such as segmenting the market, selecting target segments, and designing a marketing mix for each target. Different targeting strategies like undifferentiated, concentrated, and multisegment strategies are described along with their advantages and disadvantages. Overall, the document provides an overview of segmenting, targeting, and positioning in target marketing.
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (20)
Similar to Segment targeting & positioning
Similar to Segment targeting & positioning (20)
More from Ajilal
More from Ajilal (20)
Recently uploaded
Recently uploaded (20)
Segment targeting & positioning
- 2. Figure 8.1: Steps in the Target Marketing Process
- 3. Sells multiple brands within the same product category for a variety of products Brands feature a different mix of benefits and appeal to different segments Has also identified different niches within certain segments Product modifications are useful: Tide offers seven different product formulations to serve different niches’ needs Procter & Gamble
- 4. Market Segmentation Market Market Segment Market Segmentation People or organizations with needs or wants and the ability and willingness to buy A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
- 5. MARKET SEGMENTATION = Dividing market into segments, each of which behaves differently vis-à-vis your product Selecting certain segment(s) Developing one marketing plan for each segment Thinking small(er)
- 6. PRODUCT MARKET SOFT PILLOW MEDIUM PILLOW FIRM PILLOW Stomach sleepers Back sleepers Side sleepers Key: L, Large market; M, medium market; S, small market L L L M M M M S S Product/Usage Habits Segmentation Pillow Manufacturer
- 7. Segmentation ----WHY!!!!!!!!!!!!!!!!!!!! Buyer Preference Patterns Homogeneous preference Diffused preference Clustered preference
- 8. STYLE DURABLE Homogeneous Preference -No natural segments -All buyers have same preference TITAN WATCHES
- 9. STYLE DURABLE Diffused Preference -No pattern (…or poor research) -Take center position TITAN WATCHES
- 10. STYLE DURABLE Clustered Preference -Natural segments -Increases as number of competitors increases TITAN WATCHES
- 11. Values of the Two Segments- Youngsters & Adults - WATCHES Attribute 1 PRICE Attribute 2 BEAUTY Attribute 3 DURABILITY Adults Youngsters
- 12. Segmentation Dilemma Mass Marketing -- (Economies of Scale) (However, everyone is different) CUSTOMIZATION
- 13. Choosing a Targeting Strategy Undifferentiated Marketing Differentiated Marketing Concentrated Marketing Customized Marketing
- 14. Undifferentiated Marketing Appeals to a broad spectrum of people Efficient due to economies of scale Effective when most consumers have similar needs Example: Big Bazaar
- 15. Differentiated Marketing Develops one or more products for each of several customer groups with different product needs Appropriate when consumers are choosing among well-known brands with distinctive images and it is possible to identify one or more segments with distinct needs for different types of products Example:Lakme, Ponds, Fair & Lovely
- 16. Concentrated Marketing Entails focusing efforts on offering one or more products to a single segment Useful for smaller firms that do not have the resources to serve all markets Example:HMT Watches
- 17. Customized Marketing Segments are so precisely defined that products are offered to exactly meet the needs of each individual – Example: Mass customization is a related approach in which a company modifies a basic good to meet the needs of an individual – Example: Dell Computers
- 18. Segmentation Why segment? – Identifies opportunities and needs. – Allows firm to focus on specific needs. – Improves marketing mix for each segment. – Allows small firm to exist.
- 19. The Importance of Market Segmentation Markets have a variety of product needs and preferences Marketers can better define customer needs Decision makers can define objectives and allocate resources more accurately
- 21. Criteria for Segmentation Substantiality Identifiability Measurability Accessibility Responsiveness Segment must be large enough to warrant a special marketing mix. Segments must be identifiable and their size measurable. Members of targeted segments must be reachable with marketing mix. Unless segment responds to a marketing mix differently, no separate treatment is needed.
- 22. Segmentation Bases Characteristics of individuals, groups, or organizations used to divide a total market into segments. (variables)
- 23. Bases for Segmentation Behavioral Benefits Sought Psychographics Demographics Geography Bases Used to Segment Consumer Markets
- 24. Geographic Segmentation Region of the country or world Market size Market density : TV Companies Climate: woollen clothes City
- 25. Bases for Segmentation Behavioral Benefits Sought Psychographics Demographics Geography Bases Used to Segment Consumer Markets
- 26. Bases for Demographic Segmentation Age: Cartoon Network; MTV; News Channels Gender: Cosmetics & After Shave Income: Economical & Luxury goods Ethnic background: Food Family Life Cycle: Life Insurance Companies Generation: Apparels Education Occupation: PC Selling
- 27. Bases for Segmentation Behavioral Benefits Sought Psychographics Demographics Geography Bases Used to Segment Consumer Markets
- 28. Psychographics Psychographic segments market in terms of shared attitudes, interests, and opinions Segments include demographic information such as age and income, but also includes richer descriptions Some organizations develop their own psychographic segments for their consumers, but others utilize national systems (VALS by SRI International)
- 31. Life Style: VALS
- 32. VALS Framework •PRINCIPLE ORIENTED: •Fulfilled: Mature, Well Educated, Informed, Respectful but Open minded •Believers: Conservative, Conventional, follow established rules •STATUS ORIENTED: •Achievers:Committed to family and Work, Image is very Important •Strivers: Unsure of themselves, Money is a measure of success •ACTION ORIENTED: •Experiencers: Young, Vital, Enthusiastic, rebellions •Makers: Practical, Suspicious of new ideas, value working with their hands
- 33. Bases for Segmentation Behavioral Benefits Sought Psychographics Demographics Geography Bases Used to Segment Consumer Markets
- 34. Benefit Segmentation The process of grouping customers into market segments according to the benefits they seek from the product . Maruti Esteem, Honda City
- 35. Bases for Segmentation Behavioral Benefits Sought Psychographics Demographics Geography Bases Used to Segment Consumer Markets
- 36. Segmenting by Behavior Behavioral segmentation slices consumers on the basis of how they act toward, feel about, or use a product
- 37. Behavioral Segmentation Variables Market Segmentation Occasions User Status User Rates: Airlines Loyalty Status: Credit Cards Readiness Stage Attitude Toward the Product
- 38. Business Marketing Segmentation Geographic Customer Type Customer Size Product Use Business Markets Purchasing Criteria Purchasing Strategy Importance Personal Characteristics Micro- segmentation Macro- segmentation
- 39. Steps in Segmenting a Market Select a market for study Choose bases for segmen- tation Select descrip- tors Profile and analyze segments Select target markets Design, imple- ment, maintain mkting mix
- 40. Target Market A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
- 41. Strategies for Selecting Target Markets Concentrated Strategy Undifferentiated Strategy Multisegment Strategy
- 42. Undifferentiated Targeting Strategy Advantages: Potential savings on production and marketing costs Disadvantages: Unimaginative product offerings Company more susceptible to competition
- 43. Concentrated Targeting Strategy Advantages: Concentration of resources Meets narrowly defined segment Small firms can compete Strong positioning Disadvantages: Segments too small, or changing Large competitors may market to niche segment
- 44. Advantages: Greater financial success Economies of scale Disadvantages: High costs Cannibalization Multisegment Targeting Strategy
- 45. Positioning Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
- 46. Position The place a product, brand, or group of products occupies in consumers’ minds relative to competing offerings.
- 47. Effective Positioning Assess the positions of competing products Determine the dimensions of these positions Choose an effective market position
- 48. Positioning Bases Attribute Price and Quality Use or Application Product User Product Class Competitor Positioning Bases