1. Building the right relationships with the right customers
Week 3

2. Ford’s Model T
followed a mass market approach :
"You can have any color you want, as long as it is black

3. STP (Segmentation, Targeting, Positioning)

4. Market Segmentation
Division of total market into smaller, relatively homogeneous groups
– kurtz, Boone –
Dividing market into smaller groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes
– Philip Kotler –
Clustering people with similar needs into a “market segment” (a relatively homogeneous group of customers who will respond to a marketing a similar way) – Perreault, Cannon, McCarthy –
Segmentasi berarti melihat pasar secara kreatif – Hermawan Kartajaya, Rethinking Marketing –

5. Segmentation Variables for Consumer Markets:
Product-related market

6. Segmentation Variables for Consumer Markets

7. This fridge with a built in TV is targeted to the owner who watches television in the kitchen and has a design that faces the fridge (behavioral variables)
Nutrition bars are targeted to varying demographics including men, women and children (demographic variables)

8. Segmentation based on Gender

9. Segmentation based on Psychographic

10. Segmentation based on Behavioral

11. Segmentation based on Loyalty Status

12. International Markets
Segmentation for
International Markets

13. Requirements for Effective Segmentation
To be useful, market segments must be:
Measurable
Accessible
Substantial
Differentiable
Actionable

14. Target Market
Target market consist of a set of buyers who share common needs or characteristics that the company decides to serve

16. Target Marketing Strategies
Undifferentiated marketing targets the whole market with one offer
Mass marketing
Focuses on common needs rather than what’s different
Differentiated marketing targets several different market segments and designs separate offers for each
Goal is to achieve higher sales and stronger position
More expensive than undifferentiated marketing
Concentrated marketing targets a small share of a large market
Limited company resources
Knowledge of the market
More effective and efficient
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
Local marketing
Individual marketing
Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups
Cities
Neighborhoods
Stores
Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers
Also known as:
One-to-one marketing
Mass customization
Markets-of-one marketing
Mass customization is the process through which firms interact one-to-one with masses of customers to design products and services tailor-made to meet individual needs. Has made relationships with customers important in the new economy.
Provides a way to distinguish the company against competitors

17. Individual marketing

18. Individual Marketing (Customization)

19. Source:

20. Patterns of Target Market Selection

21. Patterns of Target Market Selection

22. Product differentiation Service differentiation
Identifying a set of possible competitive advantages to build a position by providing superior value from :
Product differentiation
Service differentiation
Channel differentiation
People differentiation
Image differentiation

23. Positioning Perceptions Impressions Feelings
The way the product is defined by consumers on important attributes — the place the product occupies in consumers’ minds relative to competing products
Perceptions
Impressions
Feelings

24. Perception
“Many people believe that the basic issue in marketing is convincing customers you have a better product, that in the long run the best product will win.
Not true… It's an illusion…there is no objective reality. The perception is the reality. Marketing is battle of perceptions, not products All that exists in the world of marketing are perceptions in the mind of customers “
Source: the 22 immutable laws of marketing by Jack Trout, Al Ries

25. Perceptions for Different Brands of Bar Soap
Positioning and Differentiation
Positioning analysis is based on how (potential) customers think about a firm's current or potential offering
Positioning considers how customers think about competitors' offerings as well as the firm’s own offering
Positioning analysis identifies what kind of offering different segments see as ideal
Differentiation focuses on developing a marketing mix that target customers will see as distinct from competing mixes
Positioning and differentiation help with combining and segmenting, by revealing which segments view the market in similar (or dissimilar) ways

26. Positioning Statement (PS)
PS states the product’s membership in a category and then shows its point-of-difference from other members of the category.
Examples :

27. Value Propositions

28. Dunkin versus Starbucks.
Discuss
It’s the time
of the great coffee wars:
Dunkin versus Starbucks.
Discuss the target market for each company’s coffee.
Are these just consumer markets, or is there a business market for them as well?

29. thank you