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IMT-N-V-14-CBConsumer Behavior
Session II
Wednesday, October 8 th 2014
Text Reference:Chapter 2, Segmentation, Targeting & Positioning
Consumer Behavior, Schiffman – Wisenblit -Ramesh Kumar, Pearson Pub.
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Learning Objectives
Market Segmentation & Marketing Strategy
1. Value based Marketing2. Interrelationship between STP
3. Effective STP4. Base for Segmenting & Targeting5. Contemporary Marketing Strategies
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2.1 Delivering Customer Value
Choose the Value
• Customer Segmentation• Focus on Target Market• Value Positioning
Provide the Value
• Develop Product & Service• Pricing• Sourcing & Making• Distribution & Servicing
Communicate theValue
• Sales Force• Sales Promotion• Advertising
Strategic Marketing Tactical Marketing
VALUE CHAIN
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Strategic Planning & Marketing Strategy
CorporateLevel
• Defining the Company Mission• Setting Company Objectives & Goals• Designing the Business Portfolio
StrategicLevel
• Planning Marketing Strategies for Business Units/ Verticals• Strategic Marketing Plan
TacticalLevel
• Planning Functional Strategies for Products• Tactical Marketing Plan
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Marketing Strategy
Level Time Period Nature Means Tools of Analysis
Corporate 10+ Years
StrategicPlanning STP
1) BCG Matrix
2) Michael Porter’s5 Forces Model
3) SWOT Analysis
4) Igor Ansoff’sGrowth VectorMatrix
Division 5-10 Years
SBU 2-5 Years
Product 0-2 Years TacticalPlanning
4P’s Marketing Plan
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Marketing Plan
Marketing Plan 5 C’s STP 4 P’s
I. Executive SummaryII. Situation Analysis
CustomerCompanyCollaboratorsContext
Competitors
SegmentationTargetingPositioning
ProductPricePlacePromotion
III. Marketing StrategyIV. Goals & Projections
CustomerCompanyCollaboratorsContextCompetitors
SegmentationTargetingPositioning
ProductPricePlacePromotion
V. Tactical Plans &Implementation Controls
CustomerCompanyCollaboratorsContextCompetitors
SegmentationTargetingPositioning
ProductPricePlacePromotion
Pp 240. Marketing Plans, Marketing Management, Avinash Kapoor, Cengage Learning
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2.2 STP & Inter-relationships
Segmenting:Who will be my customer?
○ Dividing market into subsets of consumers with common needs or characteristics
Targeting:How to approach them?
○ Selecting prospective customers & pursuing them○ One or more segments to pursue
Positioning:
How to entice these customers?○ Create distinct image; Choose a value proposition○ Differentiate- USP, Position & Communicate
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Market Segmentation
Consumer needs differ
Heterogeneity prevails in market
Marketers find homogenousgroups in heterogeneous market
Then offer something different toeach segment
Differentiation helps productscompete
Segmentation helps identify mediaaccessed
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Targeting Segments
Mass (Undifferentiated) MarketingServing whole market with one offering
Differentiated (Segmented) Marketing
Several segments with individual marketing mixes
Concentrated (Niche) MarketingOne segment, small product mix, high margins
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Segment by Segment Invasion Plan
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Positioning
Product Positioning = Product differentiation + CommunicationCustomer co-creation by customer centric organizationsProjecting image of product in consumer’s mind
Positioning more important than actual product, includes:Product features & benefitsQuality, price & packagingUse, user & applicationVersus competition
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ConsumerPersonality
SelfImage
Product ProductPersonality
BrandPersonality
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2.3 Criteria for Effective Segments/ Targeting
Identifiable Sizeable
Stable Accessible
Congruent with the company’sobjectives and resources
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2.4 Bases for Segmentation
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2.5 Contemporary Marketing Strategies
Behavioral targeting○ Personalized advertising messages
Tracking online navigationTracking Geographical locationTracking purchase behavior
Micro targeting○ Narrowcasting
Email, Mobile
Consumer generated marketing/ contentProduct placement
Celebrity endorsementsSegment/ Brand age cycle
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Chapter 14, Contemporary Marketing Strategies, CB-Kardes,Cline.Cronley, 2008International edition, Cengage
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Contemporary Marketing Strategies
WoMConsumers talking about brandsNaturally & organically occurring brand talk
Marketer involvement
Buzz Marketing○ Campaign designed to generate WoM○ Serves commercial interests for a marketer Viral Marketing○ Use of internet to spread WoM & Buzz○ Sharing & tagging over social mediaStealth Marketing○ Covert Buzz Campaign○ Consumer unaware of systematic buzz generation
Chapter 14, Contemporary Marketing Strategies, CB-Kardes,Cline.Cronley, 2008International edition Cengage