Presentation on theme: "COMPETITION IS EVERYWHERE"— Presentation transcript:
1 COMPETITION IS EVERYWHERE CHAPTER 074/20/2017COMPETITION IS EVERYWHERE7.1 Targeting Market Segments7.2 Positioning for Competitive Advantage7.3 Competing for Market Segments7.4 Learning About the CompetitionMARKETING
2 TARGETING MARKET SEGMENTS GOALS for Lesson 7.1Describe how markets can be segmented by geographic location, demographic characteristics, psychographics, product usage, and benefits derived.Explain how to evaluate market potential and calculate market share.
3 Identifying Market Segments Marketing Segment – a group of individuals or organizations within a larger market that share one or more important characteristics.Mass Marketing – aimed at a broad population of consumers rather than a narrow segment.
4 Identifying Market Segments Geographic segmentation – dividing customers based on where they liveDemographic characteristics – age, gender, race, income, educationPsychographics – people’s interests and values
5 Identifying Market Segments Product usage – frequency with which consumers use a product.Benefits derived – divides the population into groups depending on the value they receive form the product or service.
6 Analyzing Market Segments 1. Number of potential consumers2. Interest in the product or service and other mix elements3. Money available to make the purchase4. Ability to communicate with consumers through the promotional mix
7 Market Segment Analysis People who vacation at ski resortsPeople who read ski magazinesPeople with annual income over $50,000People who like to ski
8 Market PotentialMarket potential is the total revenue that can be obtained from the market segment.
9 Market ShareMarket share is the portion of the total market potential that each company expects to get in relation to its competitors.
10 Review Activities Review Questions, pg. 170, #1-4 Review Activity, pg. 185, #28, a - e
11 POSITIONING FOR COMPETITIVE ADVANTAGE GOALS for Lesson 7.2Explain the various bases for positioning a product to distinguish it from the competition.Describe the three common positioning strategies.
12 PositioningTo highlight differences between competitors in the mind of the consumer that may influence purchases.Market Position – refers to the unique image of a product or service in a consumer’s mind relative to similar competitive offerings.
13 Bases for Positioning Attribute – product characteristics or features Price and quality – desired level of quality in the product and establishing an appropriate priceUse or application – stressing unique uses
14 Bases for PositioningProduct user – encourages use of a product or service by associating a personality or type of user with the productProduct classification – to associate with a particular categoryCompetitor – demonstrate how they positioned against competitors
15 Market Position Laundry Product A Laundry Product B Attribute Cleans quickly and easily Leaves fresh scentPrice and QualityLow price, good value Higher price for highest qualityUse or ApplicationUse as pre-wash on tough stains Use for hand-washing delicatesProduct UserHomemaker’s reliable friend New generation’s discoveryProduct ClassificationUsed by Olympic athletes Used by professional laundriesCompetitorGets out dirt Product B can’t Gentler on clothing than Product A
17 Selecting a Positioning Strategy Consumer perceptions are the images consumers have of competing goods and services in the market placeEx. – Hersey produces the ideal chocolate barEx. – BMW the ultimate driving machine
18 Selecting a Positioning Strategy Competition – that your product is superior to the competitionEx – Coke vs. PepsiBusiness environment – changes that might affect the position of its products or servicesEx – golf clubs (new technology)
19 Positioning Strategy? Hospital’s Emergency Services Fast Food FurnitureGuitar ClassesCell PhonesEnergy DrinksIf you were a business owner, which positioning technique would be best for each product or service? Why?
20 COMPETING FOR MARKET SEGMENTS GOALS for Lesson 7.3Explain direct vs. indirect competition and price vs. non-price competition.Describe the benefits of competition to consumers.
21 Types of Competition for Positioning Direct competition – competition in a market segment with businesses that offer the same type of product or serviceMarriott vs. HyattMcDonalds vs. Burger King
22 Types of Competition for Positioning Indirect competition – competes with a product that is outside its product classification group.Ex –
23 Types of Competition for Positioning Price competition – emphasis on price when companies compete.Ex – restaurants, grocery stores, airlines
24 Types of Competition for Positioning Non-price competition – emphasis on non price factors, quality, brand, location, or serviceEx – insurance companies, high end products.
25 Benefits of Competition Consumer receives the best price for products available.Competition encourages improvements in products with the addition of unique features and benefits.Businesses are always looking for new and improved products to put into the marketplace to compete with their competitors.Competition offers consumers the benefit of a wide variety of products from which to choose.
26 Product Development Project – Element #4 Competition Analysis – 7.2 and 7.3Who are your competitors?Who are your direct competitors? What are their strengths and weaknesses? How can you use them to help your business?Who are your indirect competitors?How are you going to position your product, what are the bases for the positioning, why?
27 LEARNING ABOUT THE COMPETITION GOALS for Lesson 7.4Discuss the types of information businesses need to know about their competitors.Describe the kinds of activities businesses engage in to gain marketing intelligence.
28 Types of Information Price Distribution Product/Service planning PromotionCompetitor’s market position
29 Sources of Information Marketing IntelligenceAttend trade showsTalk to customersAnalyze sales reportsShip in competitor’s businessSubscribe to information servicesExamine competitor’s product
30 Collecting and Analyzing Information Collection is an organized processObjectivesTo identify the strengths and weaknesses of key competitorsTo assess competitors’ current market strategiesTo predict competitors’ future actions