Documente Academic
Documente Profesional
Documente Cultură
SEGMENTATION
A company cannot serve all customers in a broad market such as computers and soft drinks. The consumers are too much numerous and diverse in their buying requirements. The company needs to identify the market segments that it can serve more effectively. The market is divided into homogenous groups to serve each customer segment effectively.
SEGMENTATION
Market segmentation is the process of dividing a heterogeneous market into a homogeneous sub units. Market segmentation helps a firm to compete in a highly competitive market. For competitive advantage of a firm lies in being everything to a select few. To be everything to everyone is a sure recipe for a strategic failure. A market segment consists of a large identifiable group within a market with similar wants, purchasing power, geographical location, buying attitudes, or buying habits.
NICHE MARKETING
A niche is a more narrowly defined group, typically a small market whose needs are not well served. Marketers usually identify niches by dividing a segment into sub segments or by defining a group seeking a distinctive mix of benefits. For example, the segments of heavy smokers include those who are trying to stop smoking and those who dont care.
LOCAL MARKETING
Target marketing is leading to marketing programs being tailored to the needs and wants of local customer group.
INDIVIDUAL MARKETING
The ultimate level of segmentation leads to segment of one, customized knowledge, or onetoone marketing.
PATTERNS OF MARKET SEGMENTATION Homogenous Preferences-Here consumers have roughly the same preference. The market has no natural segment. Diffused Preferences-Consumer preferences may be scattered through out, indicating that consumers vary greatly in their preferences. Clustered Preferences-The markets may reveal distinct preference clusters, called natural market segments.
Clustered Preferences
Diffused Preferences
Homogenous Preferences
Urban, Rural
Climate
2. Demographic Segmentation
Age Below 6, 6-11, 12-19,20-34, 35-49, 50-64, 65+ Sex Male, Female Marital status Single, Married, Divorced, Widowed Religion Hindu, Muslim, Christian, Sikh, Parsi, Jain Income Level Lower Level, Middle Income, higher Level
.
2. Demographic Segmentation
Education
Illiterate, School, Secondary School, Diploma, Graduate, Post graduate, Professional graduate
Occupation
Un employed, Housewife, Student, Agricultural, Skilled/ Semi skilled/ Un skilled Workers, Clerk, Sales Person, Officers/ Executive/ Managers, Proprietors, teachers, Professional & Technical.
3. Psychographic Segmentation
Social Class
Lower Class, Middle Class, Upper Class
Life Style
Economy Minded, Status Conscious, Extrovert-Enthusiast.
Personality
Gregarious, Ambitious, etc.
4. Use-Related Segmentation
User Rate
Light User, Medium User, Heavy User
User Status
Non-User, Ex-User, Potential User, First time User, Regular User.
Brand Loyalty
Absolute, Strong, Medium, None.
Occasion
Regular, Special
Close-Up
Crest
Brands on sale
High selfinvolvement
High sociability
High hypochondriasis
High autonomy
Lifestyle characteristics
Hedonistic
Active
Conservative
Value-oriented
EFFECTIVE SEGMENTATION
Demographic Industry Which industry should we serve? Company What size company should we serve? Location What geographical areas should we serve?
Source- Bonoma and Shapiro
SEGMENTING BUSINESS MARKETS Operating Variables Technology What customers technology should we focus on? User or non seller status Should we serve heavy users, medium users, light users or non users Customer capabilities Should we serve customers needing many or few services?
Source- Bonoma and Shapiro
SEGMENTING BUSINESS MARKETS Situational Factors Urgency Should we serve companies that need quick and sudden delivery or service? Specific application Should we focus on specific application of our product rather than all companies? Size of order Should we focus on large or small orders?
Source- Bonoma and Shapiro
SEGMENTING BUSINESS MARKETS Personal Characteristics Buyer seller similarity Should we serve companies whose people and values are similar to ours? Attitude towards risk Should we serve risk taking or risk avoiding customers? Loyalty Should we serve customers that show high loyalty to their suppliers?
Source- Bonoma and Shapiro
Response variables
What they want Benefits Desired Price, reliability, service Application or usage situation Scheduled verses unplanned maintenance (trucks, factories) Sensitivity to marketing mix Price, promotion, product features Purchasing Behaviour Buying volume & frequency Switching among brands Purchasing approach Channel used
TARGET MARKETS
MARKET
Market is an aggregate of people who have needs for products in a product class and who have the ability, willingness, and authority to purchase the products.
TARGET MARKET SELECTION PROCESS 1. 2. 3. 4. 5. Identify the Appropriate Targeting Strategy Determine which segmentation variables to use Develop Market Segment Profiles Evaluate relevant Market Segment Select Specific Target Markets
1.
3.
Promotion
ORGANIZATION
TARGET MARKET
Promotion
ORGANIZATION
TARGET MARKET
Product Price Place AAAAAAAAAAA AAAAAAAAAAA BBBBBBBBBBB BBBBBBBBBBB CCCCCCCCCCC CCCCCCCCCCC TARGET MARKET
Promotion
MARKETING MIX 1
Product
ORGANIZATION Price Place
DIFFERENTIATED STRATEGY
POSITIONING
POSITIONING Positioning is an act of communicating companys offer so that it occupies a distinct and valued place in the consumers mind
POSITIONING
various ways to position the brand are Use situations Emphasizing tangible benefits Linking to users Head on competitive positioning Lifestyle positioning
POSITIONING
various ways to position the brand are Use situations Emphasizing tangible benefits Linking to users Head on competitive positioning Lifestyle positioning
POSITIONING
Positioning ErrorsUnder Positioning Over Positioning Irrelevant Positioning Confused Positioning Doubtful Positioning
POSITIONING
Positioning a Brand- PERCEPTUAL MAPPING Studying the ideal product perception. Get the customers to rank these attributes in the order of importance to them. Customers knowledge of competitors brand. Customers are asked to assess competitors brands and specify how close or far they are on each attribute to the ideal product. Based on customers assessment of competitors brands on the ideal product map, product managers identify vacant slots and then build the positioning strategy by filling these.