2. Segmenting, Targeting and Product Positioning Pertemuan 9 Matakuliah: J0114/Manajemen Pemasaran Tahun: 2008

3. Bina Nusantara Learning Outcomes Students can choose bases for segmentation

4. Bina Nusantara Material Outline Market segmentation Purpose of segmentation Segmentation procedure Segmentation, branding and experiential marketing

5. Bina Nusantara Market Segmentation Dividing the market into smaller groups of buyers with distinct needs, characteristics or behaviors who might require separate products or marketing mixes.

6. Bina Nusantara Market Segmentation Awareness that companies cannot appeal to all buyers in the marketplace, or at least not to all buyers in the same way Many companies are being more choosy about the customers with whom they wish to build relationships. Firms are focusing on the buyers who have greater interest in the values they create best.

7. Bina Nusantara Purpose of Segmentation Identify new segments: –Finding unmet needs and opportunities –Finding new behavior from consumers Identify new marketing strategies: –Based on findings, identify new market strategies to differentiate your offering Identify newly developed differentiation values: –Based on new consumer behavior, develop concepts of differentiation Focus on certain marketing strategies and objectives Allocate budget more efficiently

8. Bina Nusantara Segmentation Procedure Identify segmentation objectives: Setting goals of doing segmentation What do you wish to achieve by doing segmentation? For example: increasing sales to 15%, increasing product awareness 15% Identify market or industry characteristics: Study market behavior: how consumers, competition, regulation play important role in market or industries. Example: consumer electronic products can be divided according to life style and income.

9. Bina Nusantara Segmentation Procedure Find out proper basis for dividing markets: Choose amongst many variables which variables best divide market into smaller groups This can be done by doing a thorough analysis of market or industry characteristics Determine number of variables used to segment markets. This can be learnt from market, business or industry characteristics.

10. Bina Nusantara Segmentation Procedure Implementation: –Dividing the market according to business and industry characteristics and variables used Targeting market: Develop measure of segment attractiveness Select target segments Evaluation: Analyze the achievement of current goals in comparison to expected goals Analyze whether segments formed show differences across segments and familiarity within segments

11. Bina Nusantara Segmentation, Branding and Experiential Marketing Segmentation: –Finding new segment –Finding new ideas for differentiation –Finding new positioning Branding: –Offering new value proposition –Creating new image –Creating new personality Experiential Marketing: –Inducing consumers through sensory elements

12. Bina Nusantara Conclusions: Segmentation is about dividing market into smaller groups of consumers showing distinct needs, characteristics, behaviors. Companies have to select and focus on consumers whom they want to serve for, in order to be more efficient Companies cannot appeal all buyers with the same marketing strategy Segmentation results in new segment that can be the source of differentiation, brand personality creation. Thus, it will create new experience for consumers.