Upload
ayman-ahmed
View
218
Download
0
Embed Size (px)
Citation preview
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
1/58
1
Segmentation, Targeting & Positioning
for Competitive Advantage
By Dr. Kevin Lance Jones
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
2/58
2
Marketing Process Involves
Market orientation as philosophy
Market segmentation
Targeting market
Positioning
Marketing mix
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
3/58
3
Marketing Strategy
Select base for segmentation and identify
appropriate market segments.
Evaluate and appraise the market segmentsresulting from the first step.
Select an overall market targeting strategy and
specific target segments.
Tailoring a distinct position in selected markets
Developing marketing mixes that serve desired
positioning strategy in the marketplace
Auditing marketing environments and efforts
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
4/58
4
Importance of
Segmentation and Targeting
The focus of a successful marketing program is thecustomer. Effectively marketing must fully understand the
needs. Customers with decent life and individualism have
Heterogeneous demands, This has given rise to needsegmenting.
The process of understanding the customer and choosinga group of customer you can serve best is targeting.
So target a segmentation is core of the marketing process.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
5/58
5
Identify the Total Market
Objective 3
Identify Total MarketIdentify Total Market
Effective SegmentationEffective Segmentation
Bases for SegmentationBases for Segmentation
Select Target SegmentSelect Target Segment
Positioning StrategyPositioning Strategy
Marketing MixMarketing Mix
Monitor, Evaluate andMonitor, Evaluate and
ControlControl
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
6/58
6
Identify the Total Market
The first step in the target market
selection process is to specificallydefine the total market of all potentialcustomers for a product category.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
7/58
7
Segmentation and Effectiveness
Objective 3
Identify Total MarketIdentify Total Market
EffectiveEffective
SegmentationSegmentation
Bases for SegmentationBases for Segmentation
Select Target SegmentSelect Target Segment
Positioning StrategyPositioning Strategy
Marketing MixMarketing Mix
Monitor, Evaluate andMonitor, Evaluate and
ControlControl
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
8/58
8
Segmentation
Segmenting means dividing a heterogeneousdemanding markets into homogenous groupsbased on similar characteristics or traits
Heterogeneous demand- different groups ofcustomers have differing needs from specificproducts.
Homogeneous segment- the separation ofmarkets into distinctive groups based onhomogeneous characteristics.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
9/58
9
Criteria for
successful segmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
10/58
10
Criteria for
successful segmentation
Clear differences
in consumerpreferences for a
product must
exist.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
11/58
11
Criteria for
successful segmentation
Difference
preferences for a
product must beidentifiable and
capable of being
related tomeasurable
variables.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
12/58
12
The proposed
market segmentmust have enough
size and
purchasing powerto be profitable.
Criteria for
successful segmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
13/58
13
Companies must
be able to respond
to difference
preferences with
an appropriate
marketing mix.
Criteria for
successful segmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
14/58
14
The proposed
market segment
must be readilyaccessible and
reachable with
market programs.
Criteria for
successful segmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
15/58
15
Determine Bases for Segmentation
Objective 3
Identify Total MarketIdentify Total Market
EffectiveEffective SegmentationSegmentation
Bases for SegmentationBases for Segmentation
Select Target SegmentSelect Target Segment
Positioning StrategyPositioning Strategy
Marketing MixMarketing Mix
Monitor, Evaluate andMonitor, Evaluate and
ControlControl
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
16/58
16
Bases for Segmentation
To divide a market into segments, firms
use segmenting criterion that describethe characteristics of each part of the
market.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
17/58
17
Segmentation BaseSegmentation Base
SituationSituation
SegmentationSegmentation
PsychographicPsychographic
SegmentationSegmentation
GeographicGeographic
SegmentationSegmentation
Behavior/UsageBehavior/Usage
SegmentationSegmentation
DemographicDemographic
SegmentationSegmentation
BenefitsBenefits--SoughtSought
SegmentationSegmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
18/58
18
Social classSocial classSocial classSocial class
Income LevelIncome LevelIncome LevelIncome Level
EthnicEthnicEthnicEthnicEducationEducationEducationEducation
Life-cycleLife-cycle
Segmentation Base
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
19/58
19
Segmentation BaseSegmentation BaseSegmentation BaseSegmentation Base
SituationSituation
SegmentationSegmentation
PsychographicPsychographic
SegmentationSegmentation
GeographicGeographic
SegmentationSegmentation
Behavior/UsageBehavior/Usage
SegmentationSegmentation
DemographicDemographic
SegmentationSegmentation
BenefitsBenefits--SoughtSought
SegmentationSegmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
20/58
20
Segmentation Base
Localizes its marketing efforts to specific
geographic regions
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
21/58
21
Segmentation BaseSegmentation BaseSegmentation BaseSegmentation Base
SituationSituation
SegmentationSegmentation
PsychographicPsychographic
SegmentationSegmentation
GeographicGeographic
SegmentationSegmentation
Behavior/UsageBehavior/Usage
SegmentationSegmentation
DemographicDemographic
SegmentationSegmentation
BenefitsBenefits--SoughtSought
SegmentationSegmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
22/58
22
Segmentation Base
Grouping customers together based
on social class, lifestyles and
psychological characteristics(attitudes, interests and opinions)
Useful but more difficult to identify and
measure compared to demographicvariables
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
23/58
23
Segmentation BaseSegmentation BaseSegmentation BaseSegmentation Base
SituationSituation
SegmentationSegmentation
PsychographicPsychographic
SegmentationSegmentation
GeographicGeographic
SegmentationSegmentation
Behavior/UsageBehavior/Usage
SegmentationSegmentation
DemographicDemographic
SegmentationSegmentation
BenefitsBenefits--SoughtSought
SegmentationSegmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
24/58
24
Segmentation Base
Markets can be segmented
based on the benefits thatconsumers desire from using a
specific product
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
25/58
25
Segmentation BaseSegmentation BaseSegmentation BaseSegmentation Base
SituationSituation
SegmentationSegmentation
PsychographicPsychographic
SegmentationSegmentation
GeographicGeographic
SegmentationSegmentation
Behavior/UsageBehavior/Usage
SegmentationSegmentation
DemographicDemographic
SegmentationSegmentation
BenefitsBenefits--SoughtSought
SegmentationSegmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
26/58
26
Segmentation Base
Purchase situation or occasion
Physical surroundings
Social surroundings
Temporal perspective
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
27/58
27
Segmentation BaseSegmentation BaseSegmentation BaseSegmentation Base
SituationSituation
SegmentationSegmentation
PsychographicPsychographic
SegmentationSegmentation
GeographicGeographic
SegmentationSegmentation
Behavior/UsageBehavior/Usage
SegmentationSegmentation
DemographicDemographic
SegmentationSegmentation
BenefitsBenefits--SoughtSought
SegmentationSegmentation
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
28/58
28
Light Users
80%
Light Users
80%Heavy Users
20%
Heavy Users
20%
Segmentation Base
Markets can be segmented by how often or howheavily consumers use a specific product Paretos Principle or80/20 Principle - 80% of revenue
generated by 20% of customers
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
29/58
29
Segmentation Base
Information for segmentingmarkets may be obtained from
database such as Census, State
Statistics, AC
ORN
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
30/58
30
Segmenting Business Markets
While the steps in the target market selectionprocess are essentially the same for businessmarkets, there are three major differences:
The purchasing process, which differsgreatly from the household consumermarket.
The use of different segment variables, in
simple way, a Standard Industrialclassification is often employed
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
31/58
31
Segmenting Business Markets
Segmentation variables used to segmentbusiness markets:
Size
Industry
Purchasing approaches
Product usage Situational factors (seasonal trend)
Geographic
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
32/58
32
Select Segments for Targeting
Objective 3
Identify Total MarketIdentify Total Market
Determine Need forDetermine Need for
SegmentationSegmentation
Determine Bases forDetermine Bases for
SegmentationSegmentation
Select Target SegmentSelect Target Segment
Positioning StrategyPositioning Strategy
Marketing MixMarketing Mix
Monitor, Evaluate andMonitor, Evaluate and
ControlControl
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
33/58
33
Targeting
Targeting: choose the specific segment toward
which a firm directs its market efforts.
Niche Marketing: the process of targeting a
small market segment with a specific,specialized marketing mix.
Micromarketing- the process of targeting smaller,
more narrowly defined market segments.
On the individual consumer end of the
continuum, a firm may decide to target individual
consumers and personalize marketing efforts
toward each.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
34/58
34
Target the Mass Market versus the
Individual Consumer
Mass
Market
Niche Micro-
marketing The
Individual
Personal-
izationMicro-
marketingNicheStandardizedMarketing
Mix
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
35/58
35
Advantage of Targeting Efforts
Cannot effectively serve all the segments,
must target marketing efforts to a segment or
segments.
Marketing opportunities and unfilled gaps
are more accurately identified
Marketing mix is more delicately meet toe
potential customers needs Offer the greatest potential to achieve profit or
relationship goals
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
36/58
36
Targeting Strategy
1.Undifferentiated marketing
2.Differentiated marketing
3.Concentrated marketing
4.Custom marketing
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
37/58
37
Targeting Strategy
Undifferentiated targeting strategyUndifferentiated targeting strategy
Concentrated strategy
Differentiated strategy
Companies might
develop one
marketing mix
strategy that isappropriate for all
members of the
total market.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
38/58
38
Targeting Strategy
Undifferentiated targeting strategy
Concentrated strategyConcentrated strategy
Differentiated strategy
Only one marketing
mix is developed
and directed
toward a few, orperhaps one,
profitable market
segments.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
39/58
39
Targeting Strategy
Undifferentiated targeting strategy
Concentrated strategy
Differentiated strategyDifferentiated strategy
Exists when a firm
develops different
marketing mix
plans speciallytailored for each of
two or more market
segments.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
40/58
4
0
Alternative of Targeting Strategy
1. Single segment
2. Multi segment3. Product specialized
4. Market specialized
5. Full market coverage
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
41/58
4
1
Select Positioning Strategy
Objective 3
Identify Total MarketIdentify Total Market
EffectiveEffective
SegmentationSegmentation
Determine Bases forDetermine Bases for
SegmentationSegmentation
Targeting SegmentTargeting Segment
Positioning StrategyPositioning Strategy
Marketing MixMarketing Mix
Monitor, Evaluate andMonitor, Evaluate and
ControlControl
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
42/58
42
Positioning
Positioning
Kotler defined: designing an
offer so that it occupies a
distinct and valued place in theminds of the target customer.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
43/58
43
Positioning
Positioning
Image that customers have about
a product in relation to the
products competitors
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
44/58
44
Positioning Strategy
Key to developing the
appropriate marketing mix isthe positioning strategy of the
product.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
45/58
45
Presumptions of Positioning
All products have object and
subject attributes
Recognizable
Comparable
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
46/58
46
Select Positioning Strategy
Effective positioning
What consumers currently think about
the product, especially in relation to
competing products What the marketer wants consumers to
think about the product
Which positioning strategy will elevatethe consumers current product image to
the desired product image.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
47/58
47
Select Positioning Strategy
Position Mapping- creating a
visual description about consumerperceptions of a product on two or
more dimensions in relation to
competitors.
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
48/58
48
Select Positioning Strategy
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
49/58
49
Select Positioning Strategy
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
50/58
50
Select Positioning Strategy
The positioning strategy must determinewhere a company wants to go
And how to get there by positioning the
product according to any of the following ways: Price/Quality
Product Attributes
Product User
Product Usage Product Class
Competition
Symbol
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
51/58
51
Marketing Mix
Objective 3
Identify Total MarketIdentify Total Market
SegmentationSegmentation
Bases for SegmentationBases for Segmentation
Select Target SegmentSelect Target Segment
Positioning StrategyPositioning Strategy
Marketing MixMarketing Mix
Monitor, Evaluate andMonitor, Evaluate and
ControlControl
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
52/58
52
Marketing Mix
The final steps are to develop and a
marketing mix matched to the needs of the
target market
This must support the chosen positional
strategy in the selected target markets
Therefore determine the 4Ps or7Ps of
its marketing mix as a tool to achieve thedesired position
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
53/58
53
Recognize 4Ps and the 7Ps
Productcustomer value
Pricecost
Placeconvenience Promotioncommunication
Peopleconsideration
Processesco-ordination
Physical evidenceconfirmation
M k i S d h
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
54/58
54
Marketing Strategy and the
Marketing Mix
Objective 4
ProductPlace
(Distribution)
Promotion Price
Marketing
Mix
M k ti St t d th
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
55/58
55
Refers to goods, services, people, places
and ideas Household consumers
Business-to-business customers
Product
Marketing Strategy and the
Marketing Mix
M k ti St t d th
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
56/58
56
Marketing channel is the network of
organizations that create time, place
and ownership utilities for household
consumers and business customers.
Place
(Distribution)
Marketing Strategy and the
Marketing Mix
M k ti St t d th
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
57/58
57
Integrated Marketing Communication (IMC)
System of management and integration ofmarketing communication elements
Advertising, publicity, sales promotion,personal selling, sponsorship marketing, andpoint-of-purchase communications
Promotion
Marketing Strategy and the
Marketing Mix
M k ti St t d th
8/8/2019 6. Segmentation, Tarketing & Positioning for Competitive Advantage
58/58
58
Pricing decisions are complex and are drivenby a variety of considerations including:
Customer demand, costs, information
availability, competition, profit motives,product considerations, and legalconsiderations
Price
Marketing Strategy and the
Marketing Mix