Presentation on theme: "Objectives Be able to define the three steps of target marketing: market segmentation, target marketing, and market positioning. Understand the major."— Presentation transcript:
0 Segmentation, Targeting, and Positioning: Building the Right Relationships with the Right Customers Chapter 8
1 ObjectivesBe able to define the three steps of target marketing: market segmentation, target marketing, and market positioning.Understand the major bases for segmenting consumer and business markets.
2 ObjectivesKnow how companies identify attractive market segments and how they choose a target marketing strategy.Comprehend how companies position their products for maximum competitive advantage.
3 Case Study Procter & Gamble Sells multiple brands within the same product category for a variety of productsBrands feature a different mix of benefits and appeal to different segmentsHas also identified different niches within certain segmentsProduct modifications are useful: Tide offers seven different product formulations to serve different niches’ needs
4 Definition Market Segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
5 Market Segmentation Topics Segmenting Consumer Markets Geographical segmentationMarketing mixes are customized geographicallyDemographic segmentationMost popular segmentationDemographics are closely related to needs, wants and usage ratesPsychographic segmentationLifestyle, social class, and personality-based segmentationBehavioral segmentationTypically done firstSegmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation
6 Geographic Segmentation Variables Market SegmentationGeographic Segmentation VariablesWorld Region or CountryU.S. regionStateCityNeighborhoodCity or Metro SizeDensityClimate
9 Market Segmentation Topics Segmenting Consumer Markets Demographic segmentationIndustry, company size, locationOperating variablesTechnology, usage status, customer capabilitiesPurchasing approachesSituational factorsUrgency, specific application, size of orderPersonal characteristicsBuyer-seller similarity, attitudes toward risk, loyaltySegmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation
10 Market Segmentation Topics Segmenting Consumer Markets Geographic segmentationLocation or regionEconomic factorsPopulation income or level of economic developmentPolitical and legal factorsType / stability of government, monetary regulations, amount of bureaucracy, etc.Cultural factorsLanguage, religion, values, attitudes, customs, behavioral patternsSegmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation
11 Market Segmentation Topics Segmenting Consumer Markets MeasurableSize, purchasing power, and profile of segmentAccessibleCan be reached and servedSubstantialLarge and profitable enough to serveDifferentiableRespond differentlyActionableEffective programs can be developedSegmenting Consumer MarketsSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation
12 Target Marketing Evaluating Market Segments Segment size and growth Segment structural attractivenessLevel of competitionSubstitute productsPower of buyersPowerful suppliersCompany objectives and resources
14 Target MarketingChoosing a Target-Marketing Strategy Requires Consideration of:Company resourcesThe degree of product variabilityProduct’s life-cycle stageMarket variabilityCompetitors’ marketing strategies
15 Target Marketing Socially Responsible Targeting Some segments are at special risk:ChildrenInner-city minority consumersInternet shoppersControversy occurs when the methods used are questionable.
16 Positioning Positioning: The place the product occupies in consumers’ minds relative to competing products.Typically defined by consumers on the basis of important attributes.
17 Positioning Choosing a Positioning Strategy: Identifying possible competitive advantagesProducts, services, channels, people or image can be sources of differentiation.Choosing the right competitive advantageHow many differences to promote?Unique selling propositionPositioning errors to avoidWhich differences to promote?
18 Criteria for Meaningful Differences PositioningCriteria for Meaningful DifferencesImportantSuperiorPreemptiveDistinctiveCommunicableAffordableProfitable
19 Positioning Choosing a Positioning Strategy: Selecting an overall positioning strategyMore for More Value PropositionMore for the Same Value PropositionThe Same for Less Value PropositionLess for Much Less Value PropositionMore for Less Value Proposition
20 Positioning Choosing a Positioning Strategy: Developing a positioning statementPositioning statements summarize the company or brand positioningEXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference).Communicating the chosen position