MARKETING MANAGEMENT Identifying Market Segments and Selecting Target Markets, Positioning & Differentiating the Market Offering through the Product Life Cycle Supervised by : DR. MOHAMAD RIZAN, SE., MM.

MARKET SEGMENTATION, TARGETING & POSITIONING (1) Market segmentation; dividing a market into smaller groups of buyers distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

MARKET SEGMENTATION, TARGETING & POSITIONING (2) Target Marketing; the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

MARKET SEGMENTATION, TARGETING & POSITIONING (3) Market positioning; arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

EFFECTIVE SEGMENTATION (1) Measurable; the size, purchasing power, and characteristics of the segments can be measured. Substantial; the segments are large and profitable enough to serve.

EFFECTIVE SEGMENTATION (2) Accessible; the segments can be effectively reached and served. Differentiable; the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Actionable; effective program can be formulated for attracting and serving the segments.

MARKET SEGMENTATION (1) Geographic segmentation; dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods.

MARKET SEGMENTATION (2) Demographic segmentation; dividing the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race, generation, nationality and social class.

MARKET SEGMENTATION (3) Psychographic segmentation; dividing a market into different groups based on the basis of lifestyle or personality or values.

MARKET SEGMENTATION (4) Behavioral segmentation; dividing a market into groups based on consumer knowledge, attitude toward, use, or response to a product.

TARGET MARKET Target market; a set of buyers sharing common needs or characteristics that the company decides to serve.

SELECTING TARGET MARKET SEGMENTS (1) Undifferentiated (mass) marketing; a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.

SELECTING TARGET MARKET SEGMENTS (2) Differentiated (segmented) marketing; a market coverage strategy in which a firm decides to target several market segments and designs separate offer for each.

SELECTING TARGET MARKET SEGMENTS (3) Concentrated (niche) marketing; a market coverage strategy in which a firm goes after a large share of one or a few segments or niches.

SELECTING TARGET MARKET SEGMENTS (4) Micromarketing is the practice of tailoring products and marketing programs to suit the taste of specific individuals and locations. Micromarketing includes local marketing and individual marketing

SELECTING TARGET MARKET SEGMENTS (5) Micromarketing ; the practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups-includes local marketing and individual marketing.

MICROMARKETING (1) Local marketing ; tailoring brands and promotions to the needs and wants of local customer groups-cities, and even specific stores.

MICROMARKETING (2) Individual marketing ; tailoring products and marketing programs to the needs and preferences of individual customers-also labeled “market-of-one marketing,” “customized marketing,” and “one-to-one marketing.”

PRODUCT POSITIONING (1) Product positioning ; the way the product is defined by consumers on important attributes-the place the product occupies in consumers’ minds relative to competing products.

SEVERAL DIFFERENT POSITIONING POSSIBILITIES (1) Attribute positioning; (HP 3G) Benefit positioning; (kamera digital bisa zoom & cyber shot) Use or application positioning; (Yakult) User positioning; (HP Nokia) Competitor positioning (Honda vs Yamaha vs Suzuki) Product category positioning (Kopiko & Sari buah mangkudu) Quality and price positioning; (BMW)

PRODUCT LIFE CYCLE MARKETING STRATEGIES (1) Introduction; a period of slow sales growth as the product is introduced in the market. Marketing strategies; the pioneer advantage & the competitive cycle.

PRODUCT LIFE CYCLE MARKETING STRATEGIES (2) Growth; a period of rapid market acceptance and substantial profit improvement. Marketing strategies; (1) improve product quality and adds new product features and improved styling,

PRODUCT LIFE CYCLE MARKETING STRATEGIES (2) Marketing strategies-Growth stage; (2) adds new models and flanker products (products of different size, flavors, and so forth that protect the main product), (3) enter new market segments, (4) increases its distribution coverage and enters new distribution channels,

PRODUCT LIFE CYCLE MARKETING STRATEGIES (3) Marketing strategies-Growth stage; (5) shifts from product awareness advertising to product preference advertising, (6) lowers prices to attract the next layer of price sensitive buyers.

PRODUCT LIFE CYCLE MARKETING STRATEGIES (4) Maturity; a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profit stabilize or decline because of increased competition. Marketing strategies; market modification, product modification, marketing mix modification (take off cycle).

PRODUCT LIFE CYCLE MARKETING STRATEGIES (5) Decline; a period when sales show a downward drift and profit erode. Marketing strategies; evaluating unprofitable brand, product, and market.

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