targetiing &segmentation
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Transcript of targetiing &segmentation
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Targeting, Segmentation,&
Positioning
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Targeting
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Market SegmentA large identifiable group within amarket with similar wants, purchasing
power, geographical locations, buyingattitudes
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Niche MarketingWhat is an attractive niche ?
A distinct set of needs
A premium can be chargedNot likely to attract competition
Gains certain economies through
specialisationSufficient size, profit and growthpotential
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Local MarketingWhen the marketing mix is altered tosuit the local conditions
eg. Giving a higher/ lower discountthan whats prevailing in the rest of themarkets
or implementing a different promotionscheme
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Individualised MarketingWhen the firm deals with eachcustomer on a one to one basis
When products are customised for thecustomer
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Market TargetingSingle segment concentration
Selective specialisation
Product specialisation
Market specialisation
Full Market coverage -undifferentiated marketing
differentiated marketing
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Undifferentiated MarketingSingle product addressing all segmentswith a single marketing program.
Mass production is possible giving scaleeconomies
Pushes price downwards enabling to
attract price sensitive segments
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Differentiated MarketingA separate market offering for everysegment
Marketing programs for every segmentcould be different
Pushes up costs at various levels,
necessitating sufficient volumes forviability
Generates inter-segment rivalry
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Segmentation
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Segmentation
The analytical goal is to measureConsumer Behaviour and place
each person in a group (segment)that will minimise the behaviour
between each member of thesegment and maximise thevariance between segments
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Why do we need to segment?Because people vary so much fromother people needs, motivations,
decision processes, buying behaviourTo maintain focus on the customertarget segment
To customise advertising according totarget segment
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Behavioral variablesOccasions birthdays,lunchtime,vacations
Benefits eg.travel business,vacation, educational
User status non users, ex users, first
time users, regular users, potentialusers
Usage rate light, medium, heavy
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Loyalty statusdiehards,shifters,switchers
Buyer Readiness unaware awareinformed interested desireintention to buy
Attitude enthusiastic, positive,indifferent, negative, hostile
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Criteria for segmentationMeasurable
Substantial
Accessible
Differentiable
Actionable
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Bases for segmentationGeographic
Demographic
Psychographic
Behavioural benefit, usage situation,extent of usage
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Segmentation Strategy/ Bases for
segmentationGeographic
Demographic
Brand LoyaltyAttitudes and benefits
Psychographic or lifestyle
Behavioural benefit, usage situation, extentof usage
Culture and ethnic subculture
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Factors affecting size of
segmentsAffluence
Sophisticated consumer measurement
and databases
Custom manufacturing
New forms of distribution
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Reaching Target segmentsControlled coverage
Customer self-selection
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Segmentation is a spectrumConcentrated marketing
Differentiated marketing
Mass marketing
Niche marketing
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Positioning
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PositioningWhat the product stands for?
Mind-share
Positioning and segmentationstrategies must have fit. A brand mustbe positioned to be maximally effectivein attracting the desired targetsegment.
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Positioning strategiesProduct characteristics/benefits
Price-quality approach
Use or application approach
Product class approach
Product user approach
Cultural symbol approach
Competitor approach
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Positioning strategiesIdentify competitors
Determine how competitors are
perceived and evaluated
Determine the competitors positions
Analyse the customers
Select the position
Monitor the position
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Positioning DecisionEconomic analysis should guide the decision
Segmentation commitment
Not change for change sake. To stick with theadvertising if it is working.
Make it easy for customers toremember/recall. Use symbols, logos, etc. asa memory aid.
Be honest.
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Segmentation and Planning
for change
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Micromarketing
The result of understanding andrelating to an increasinglyfragmented market place
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Planning for changeUnless managements act, the moresuccessful a company has been in the past,the more likely it is to fail in the future.
Because the basic psychological principle isthat people tend to repeat behaviour forwhich they have been rewarded
Successful strategies must fit an environmentthat is constantly changing. Frequently thefuture arrives before managers are willing togive up the present.
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Consumer Analysis and Social PolicyPolicy issues related to macro-marketing and trends in consumer
decisionsBehavioural/ Psychological economics
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Enhanced Shareholder Value
(ESV)
The ability of a company toprovide job security and
satisfaction, satisfy customers,grow profits consistently, adopt
sound long-term strategies, abilityto weather business shocks.
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3 Ms of profit GrowthMore markets
More market share
More margins
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Markets have 4 componentsPeople and their needs
Ability to buy
Willingness to buy
Authority to buy
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Customer Buying CareerObserving
Making requests
Making selections
Making assisted purchases
Making independent purchases
Be aviora consumer
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Be aviora consumersegmentation (Generational
Cohort analysis)Baby boomers
Baby busters
Skippies
Yuppies
Muppies
Empty nesters
Young again
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EthnocentricityFocusing on ones own way of doingthings with very little sensitivity or
interest in the ways of the worldMarketing practitioners need culturalempathy defined as the ability to
understand the inner logic andcoherence of other ways of life.
Porters 5 factors that
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Porters 5 factors thatcharacterise contemporary
marketsGrowing similarity of countries
Fluid global capital markets
Technological restructuring
Integrating role of technology
New global competitors
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Cultural analysis of global
marketsCultural empathy
Think global, act local
Think local, act global
Glocalisation
Therefore, standardisation is rarelypossible.
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Communication ProblemsThe diversity of markets and consumersalso pose several communication
challenges for marketersTherefore visual language, pictures aremostly used for better universal
understanding. Gestures and words canbe misleading
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Language problems Please leave your values at the desk ParisHotel
Drop your trousers here for best results Bangkok
laundry
Because of the impropriety of entertaining guests ofthe opposite sex in the bedroom, it is suggested thatthe lobby be used for the purpose Zurich hotel
The manager has personally passed all waterserved here Acapulco restaurant
Ladies are requested not to have children in the
bar Norway bar
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Conceptual Equivalency Come alive with Pepsi
Come alive out of the grave
Germany Pepsi brings your ancestors back fromthe grave- China