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MARKETING MANAGEMENT 13 th edition 8 Identifying Market Segments and Targets KotlerKeller.

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Presentation on theme: "MARKETING MANAGEMENT 13 th edition 8 Identifying Market Segments and Targets KotlerKeller."— Presentation transcript:

1 MARKETING MANAGEMENT 13 th edition 8 Identifying Market Segments and Targets KotlerKeller

2 CHP: 8&10-2 Effective Targeting Requires… Identify and profile distinct groups of buyers who differ in their needs and preferences. Select one or more market segments to enter. Establish and communicate the distinctive benefits of the market offering.

3 CHP: 8&10-3 Ford’s Model T Followed a Mass Market Approach

4 CHP: 8&10-4 Steps in Market Segmentation, Targeting, and Positioning Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Segmentation 1. Identify bases for segmenting the market 2. Develop segment profiles Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market Targeting 3. Develop measure of segment attractiveness 4. Select target segments Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment Market positioning 5. Develop positioning for target segments 6. Develop a marketing mix for each segment

5 CHP: 8&10-5 Four levels of Micromarketing Segments Local areasIndividuals Niches

6 CHP: 8&10-6 Segment Marketing Targeting a group of customers who share a similar set of needs and wants.

7 CHP: 8&10-7 Basic Market Preference Patterns

8 CHP: 8&10-8 Customerization Combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.

9 CHP: 8&10-9 Examples of Market Customization

10 CHP: 8&10-10 Segmenting Consumer Markets Geographic Demographic Psychographic Behavioral

11 CHP: 8&10-11 Demographic Segmentation Age and Life Cycle Life Stage Gender Income Generation Social Class

12 CHP: 8&10-12 Psychographic Segmentation: The VALS Segmentation System

13 CHP: 8&10-13 Behavioral Segmentation Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude

14 CHP: 8&10-14 Behavioral Segmentation Breakdown

15 CHP: 8&10-15 Segmenting for Business Markets Demographic Operating Variable Purchasing Approaches Situational Factors Personal Characteristics Personal Characteristics

16 CHP: 8&10-16 Segmenting for Business Markets Demographic segmentation –Industry, company size, location Operating variables –Technology, usage status, customer capabilities Purchasing approaches Situational factors –Urgency, specific application, size of order Personal characteristics –Buyer-seller similarity, attitudes toward risk, loyalty

17 CHP: 8&10-17 Size, purchasing power, profiles of segments can be measured. Segments can be effectively reached and served. Segments are large or profitable enough to serve. Measurable Accessible Substantial Differential Actionable Segments must respond differently to different marketing mix elements & programs. Effective programs can be designed to attract and serve the segments. Effective Segmentation Criteria

18 CHP: 8&10-18 Market Targeting Evaluating Market Segments Segment Size and Growth –Analyze current sales, growth rates and expected profitability for various segments. Segment Structural Attractiveness –Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers. Company Objectives and Resources –Company skills & resources needed to succeed in that segment(s). –Look for Competitive Advantages.

19 CHP: 8&10-19 Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 2 Company Marketing Mix 3 Company Marketing Mix 3 Market A. Undifferentiated Marketing B. Differentiated Marketing C. Concentrated Marketing Market Targeting Market Coverage Strategies

20 CHP: 8&10-20 Patterns of Target Market Selection

21 CHP: 8&10-21 Patterns of Target Market Selection

22 CHP: 8&10-22 Patterns of Target Market Selection

23 MARKETING MANAGEMENT 13 th edition 10 Crafting the Brand Positioning KotlerKeller

24 CHP: 8&10-24 Marketing Strategy Segmentation Targeting Positioning

25 CHP: 8&10-25 Positioning Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

26 CHP: 8&10-26 Choosing a Positioning Strategy Step 1. Identifying Possible Competitive Advantages Step 2. Selecting the Right Competitive Advantage Step 3. Communicating and Delivering the Chosen Position

27 CHP: 8&10-27 Defining Associations Points-of-difference (PODs) Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand Points-of-parity (POPs) Associations that are not necessarily unique to the brand but may be shared with other brands

28 CHP: 8&10-28 Consumer Desirability Criteria for PODs Relevance Distinctiveness Believability

29 CHP: 8&10-29 Deliverability Criteria for PODs Feasibility Communicability Sustainability

30 CHP: 8&10-30 Examples of Negatively Correlated Attributes and Benefits Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Efficacious vs. Mild Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple

31 CHP: 8&10-31 Positioning: How many ideas to promote? Unique selling proposition –Four major positioning errors 1.Underpositioning 2.Overpositioning 3.Confused positioning 4.Doubtful positioning Developing and Communicating a Positioning Strategy

32 CHP: 8&10-32 Differentiation Strategies Product ChannelImage Personnel

33 CHP: 8&10-33 Product Differentiation Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

34 CHP: 8&10-34 Identity and Image Identity: The way a company aims to identify or position itself Image: The way the public perceives the company or its products


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