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Developing a Marketing Strategy & the Benefits Market Segmentation Target Marketing Positioning Tailored and effective marketing activities Identify a.

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Presentation on theme: "Developing a Marketing Strategy & the Benefits Market Segmentation Target Marketing Positioning Tailored and effective marketing activities Identify a."— Presentation transcript:

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2 Developing a Marketing Strategy & the Benefits Market Segmentation Target Marketing Positioning Tailored and effective marketing activities Identify a competitive advantage Increased sales/profits Increased customer base Effective use of resources Positioning & differentiation Stimulates innovation Develop marketing mix

3 Market Segmentation Overview of a Marketing Strategy Market Targeting Market Positioning Develop Marketing Mix(es)

4 Landscape GardenerHair Salon Defining Market Segmentation …the process of dividing a market into similar groups Females 10yrs - 60yrs+

5 Essential Criteria of a Market Segment Substantial: Large and profitable enough to serve Accessible:Can be effectively reached and served Differential:Segments must respond differently to different marketing mix elements Actionable:Effective marketing activities can be designed to attract and serve the segments Measurable:Size of segments can be measured

6 Segmentation Variables Consumer marketCommercial Market Geographical County, region, town, postcode, mile radius Demographic/ Firmographic Age, gender, income, occupation, dependants, household composition Turnover, size, employees, business activity, industry Behavioural Usage rate, loyalty, impulse buying, benefit expectations, price sensitivity Usage rate, end product use, benefits sought, purchase procedure, buying status Psychographic Lifestyle, interests, attitudes, personality traits, opinions Socially responsible, entrepreneurial, employee focused, financially prudent

7 Market Segment Profile Demographic/firmographic characteristics Location Needs/wants Benefits sought How much customers purchase How much customers spend Frequency of purchase Payment method Purchase decision factors Attitudes towards product or service Brand loyalty Mediums used to source product or service

8 Target Marketing Strategies Marketing mix UNDIFFERENTIATED MARKETING Market Marketing mix 1 Marketing mix 2 Marketing mix 3 DIFFERENTIATED MARKETING Segment 1 Segment 2 Segment 3 CONCENTRATED MARKETING Segment 1 Segment 2 Segment 3 Marketing mix

9 Marketing Strategies & Factors to Consider Resources Capabilities Product variability Market variability Competitors' marketing strategies Market environment

10 Evaluating Market Segments Expected growth rates Demand Profitability Competition intensity Competitive advantage Speed of payment Price sensitivity Cost of marketing activities Compatible with business aims and objectives

11 Key Success FactorsMarket Segment 1234 Sales potential 3868 Competition intensity 3628 Sensitivity to price 4757 Market growth rate 2658 Market size 2848 Ability to meet needs 3685 Total Quantitative Measures of Market Segment Attractiveness

12 Positioning Strategies Product attributes Usage occasions Users Against a competitor Away from competitors Product classes A combination of the above approaches

13 Positioning Map InexpensiveExpensive Low Prestige High Prestige.. Product c Product a Product b Product d

14 A Model of Competitive Advantage Your Business Cost advantage Or Differentiation Advantage Value Creation Customers

15 Consistency of use Colours Name Logo Company Identity Competitive advantage Company Image + Commitment to quality = Branding Developing an Image/Brand

16 Marketing Mix Product Price Place Promotion Customer solution Convenience Cost Communication Marketing Mix/4Ps Market Or Segment 1 Segment 2 Segment 3

17 Guarantee Delivery Core Benefit or function Packaging Features Size Support service After sales Attributes Core product level Actual product level Augmented Product level Product Levels Market Or Segment 1 Segment 2 Segment 3

18 Product Or Service Functional benefits Relationship benefits Process benefits Three Dimensions of Customer Benefits Market Or Segment 1 Segment 2 Segment 3

19 Pricing Approaches Cost Based Pricing Cost plus pricing Breakeven Buyer Based Pricing Perceived value pricing Competition Based Pricing Going rate pricing Market Or Segment 1 Segment 2 Segment 3

20 Product Service Direct to customer Product Service Intermediary Agents Retailers Distributors Internet Place/Distribution Market Or Segment 1 Segment 2 Segment 3

21 Aim of Promotion Positioning/branding/image Move customers through the decision making process (DMP) AwarenessAttitudeAction Decision making process (DMP) InterestDesire Unawareness

22 Personal selling Advertising Public Relations Sales promotions Awareness Attitude Action (Interest, desire) Level of effectiveness Promotional Mix & Effectiveness in the DMP process

23 Communicating the Message Your Business Message Customer EncodingDecoding Noise

24 Promotional Plan Checklist Mission Money Method Who you are targeting Aims & objectives Budget Costs Image/branding/positioning Costs Logistics/timeframes Integration with the marketing mix Accessibility within market segments Message Image/branding/positioning Information – product/business Features & benefits Monitoring Evaluation Effective/feedback Cost effective

25 Diversification Market penetration Market development Product development Existing MarketsNew Markets Existing Products New Products Ansoffs Product/Market Matrix Increase sales in existing market Introduce current product into new markets Develop existing or new products for existing markets New products or related products for new markets

26 Evaluation and Control Process 5 Determine what to measure Establish standards for comparison Measure performance Is performance >/ = standards? Take corrective action NO Yes Continue with marketing activity

27 Marketing Measurement Methods Customer satisfaction –Satisfaction surveys –Customer feed back forms –Formal/informal meetings with customers Sales variances –Sales/cash flow analysis –Profit margin analysis Marketing cost effectiveness –Marketing costs ratios e.g. Marketing costs Sales


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