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2.  Market orientation as philosophy  Market segmentation  Targeting market  Positioning  Marketing mix 2

3.  Select base for segmentation and identify appropriate market segments e.g. groups, individuals, organiztions.  Evaluate and appraise the market segments resulting from the first step.  Select an overall market targeting strategy and specific target segments.  Tailoring a distinct position in selected markets  Developing marketing mixes that serve desired positioning strategy in the marketplace  Auditing marketing environments and efforts 3

4.  The focus of a successful marketing program is the customer. Effectively marketing must fully understand the needs.  Customers with decent life and individualism have Heterogeneous demands, This has given rise to need segmenting.  The process of understanding the customer and choosing a group of customer you can serve best is targeting.  So target a segmentation is core of the marketing process. 4

5. 5 Objective 3 Identify Total Market Effective Segmentation Bases for Segmentation Select Target Segment Positioning Strategy Marketing Mix Monitor, Evaluate and Control

6.  The first step in the target market selection process is to specifically define the total market of all potential customers for a product category. 6

7.  Segmenting means dividing a heterogeneous demanding markets into homogenous groups based on similar characteristics or traits  Heterogeneous demand- different groups of customers have differing needs from specific products.  Homogeneous segment- the separation of markets into distinctive groups based on homogeneous characteristics. 7

8. 8 Distinctive Measurable Identifiable Substantial Actionable Accessible

9. 9 Distinctive Clear differences in consumer preferences for a product must exist.

10. 10 Difference preferences for a product must be identifiable and capable of being related to measurable variables. Measurable Identifiable

11. 11 The proposed market segment must have enough size and purchasing power to be profitable. Substantial Criteria for successful segmentation

12. 12 Companies must be able to respond to difference preferences with an appropriate marketing mix. Actionable

13. 13 The proposed market segment must be readily accessible and reachable with market programs. Accessible

14.  To divide a market into segments, firms use segmenting criterion that describe the characteristics of each part of the market. 14

15. 15 Situation Segmentation Psychographic Segmentation Geographic Segmentation Behavior/Usage Segmentation Demographic Segmentation Benefits-Sought Segmentation

16. 16 Life-cycle Social class Income Level EthnicEthnic EducationEducation

17. 17 Situation Segmentation Psychographic Segmentation Geographic Segmentation Behavior/Usage Segmentation Demographic Segmentation Benefits-Sought Segmentation

18.  Localizes its marketing efforts to specific geographic regions 18

19. 19 Situation Segmentation Psychographic Segmentation Geographic Segmentation Behavior/Usage Segmentation Demographic Segmentation Benefits-Sought Segmentation

20.  Grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions)  Useful but more difficult to identify and measure compared to demographic variables 20

21. 21 Situation Segmentation Psychographic Segmentation Geographic Segmentation Behavior/Usage Segmentation Demographic Segmentation Benefits-Sought Segmentation

22.  Markets can be segmented based on the benefits that consumers desire from using a specific product 22

23. 23 Situation Segmentation Psychographic Segmentation Geographic Segmentation Behavior/Usage Segmentation Demographic Segmentation Benefits-Sought Segmentation

24.  Purchase situation or occasion  Physical surroundings  Social surroundings  Temporal perspective 24

25. 25 Situation Segmentation Psychographic Segmentation Geographic Segmentation Behavior/Usage Segmentation Demographic Segmentation Benefits-Sought Segmentation

26.  Markets can be segmented by how often or how heavily consumers use a specific product  Pareto ’ s Principle or 80/20 Principle - 80% of revenue generated by 20% of customers 26 Light Users 80% Light Users 80% Heavy Users 20% Heavy Users 20%

27.  Information for segmenting markets may be obtained from database such as Census, State Statistics etc. 27

28.  While the steps in the target market selection process are essentially the same for business markets, there are three major differences:  The purchasing process, which differs greatly from the household consumer market.  The use of different segment variables, in simple way, a Standard Industrial classification is often employed 28

29.  Segmentation variables used to segment business markets:  Size  Industry  Purchasing approaches  Product usage  Situational factors (seasonal trend)  Geographic 29

30.  Targeting: choose the specific segment toward which a firm directs its market efforts.  Niche Marketing: the process of targeting a small market segment with a specific, specialized marketing mix (not core products on offer).  Micromarketing- the process of targeting smaller, more narrowly defined market segments.  On the individual consumer end of the continuum, a firm may decide to target individual consumers and personalize marketing efforts toward each. 30

31.  Can effectively serve all the segments, must target marketing efforts to a segment or segments.  Marketing opportunities and unfilled ‘gaps ’ are more accurately identified  Marketing mix is more delicately meet toe potential customer’s needs  Offer the greatest potential to achieve profit or relationship goals 31

32. 32 1.Undifferentiated marketing 2.Differentiated marketing 3.Concentrated marketing 4.Custom marketing

33.  Companies might develop one marketing mix strategy that is appropriate for all members of the total market. 33 Undifferentiated targeting strategy Concentrated strategy Differentiated strategy

34.  Only one marketing mix is developed and directed toward a few, or perhaps one, profitable market segments. 34 Undifferentiated targeting strategy Concentrated strategy Differentiated strategy

35.  Exists when a firm develops different marketing mix plans specially tailored for each of two or more market segments. 35 Undifferentiated targeting strategy Concentrated strategy Differentiated strategy

36. Positioning  Kotler defined: “ designing an offer so that it occupies a distinct and valued place in the minds of the target customer. ” 36

37. Positioning Image that customers have about a product in relation to the product ’ s competitors 37

38.  Key to developing the appropriate marketing mix is the positioning strategy of the product. 38

39.  All products have object and subject attributes  Recognizable  Comparable 39

40.  Effective positioning  What consumers currently think about the product, especially in relation to competing products  What the marketer wants consumers to think about the product  Which positioning strategy will elevate the consumers ’ current product image to the desired product image. 40

41.  Position Mapping also called as perceptual mapping- creating a visual description about consumer perceptions of a product on two or more dimensions in relation to competitors. 41

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44.  The positioning strategy must determine where a company wants to go  And how to get there by positioning the product according to any of the following ways:  Price/Quality  Product Attributes  Product User  Product Usage  Product Class  Competition  Symbol 44

45. 45 Objective 3 Identify Total Market Segmentation Bases for Segmentation Select Target Segment Positioning Strategy Marketing Mix Monitor, Evaluate and Control

46.  The final steps are to develop and a marketing mix matched to the needs of the target market  This must support the chosen positional strategy in the selected target markets  Therefore determine the ‘ 4Ps ’ or “ 7Ps ” of its marketing mix as a tool to achieve the desired position 46

47.  Product  customer value  Price  cost  Place  convenience  Promotion  communication  People  consideration  Processes  co-ordination  Physical evidence  confirmation 47

48. 48 Objective 4 Product Place (Distribution) Promotion Price Marketing Mix

49.  Refers to goods, services, people, places and ideas  Household consumers  Business-to-business customers 49 Product

50.  Marketing channel is the network of organizations that create time, place and ownership utilities for household consumers and business customers. 50 Place (Distribution)

51.  Integrated Marketing Communication (IMC)  System of management and integration of marketing communication elements  Advertising, publicity, sales promotion, personal selling, sponsorship marketing, and point-of-purchase communications 51 Promotion

52.  Pricing decisions are complex and are driven by a variety of considerations including:  Customer demand, costs, information availability, competition, profit motives, product considerations, and legal considerations 52 Price