chapter 8 market segmentation, targeting, and positioning strategies
TRANSCRIPT
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Chapter 8Chapter 8
Market Segmentation, Market Segmentation, Targeting, and Positioning Targeting, and Positioning
StrategiesStrategies
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ObjectivesObjectives
Define marketExplain market segmentationRelate marketing mixes to target marketsIdentify various marketing strategiesUnderstand key market segment
selection considerationsIdentify and apply segmentation variablesUnderstand positioning strategy
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What is a Market?What is a Market?
Resources
Willingness
Ability
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Segmentation Works Segmentation Works Because ...Because ...
Not all buyers alikeSubgroups may be identifiedSubgroups smaller and more
homogeneousEasier to satisfy smaller groups
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Major Steps in Major Steps in Segmentation & Segmentation &
TargetingTargeting
1.Break marke
t down
2.Group into
segments
TARGET MARKET
3.Choos
etarget marke
t
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Choosing Market Choosing Market SegmentsSegments
Distinguishing/stable characteristic
Significant sizeAccessible with
distribution & promotion
Responsive (similar needs)
Measurable potential
We need a
YES response to
each of these!
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GenderGender
FF
MM
Age14 - 21 22 - 29
Geo
gra
ph
yG
eog
rap
hy JapanJapan
Western Western EuropeEurope
U.S.U.S.
Segment Cross-Segment Cross-Classification: Aerobic Classification: Aerobic
ShoesShoes
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Matching the Marketing Matching the Marketing Mix to Target Market Mix to Target Market
Our target market: Women aged 14-21
living in the United States
The right…
Product?
Price?
Promotion?
Place?
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Possible Strategies for Possible Strategies for Target MarketingTarget Marketing
Undifferentiated marketing
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Possible Strategies for Possible Strategies for Target MarketingTarget Marketing
Concentrated Marketing80 / 20 PrincipleMajority fallacy
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80/2080/20 Rule Rule
A relatively small percentage of customers accounts for a disproportionately large share of the sales
Target Target customerscustomers
20%20%Share ofShare ofcustomerscustomers
Target Target customerscustomers
80%80%
Share ofShare ofsalessales
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Possible Strategies for Possible Strategies for Target MarketingTarget Marketing
Differentiated marketingMultiple market segmentation
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Possible Strategies for Possible Strategies for Target MarketingTarget Marketing
Custom Marketing: “To each his/her own.”
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Custom MarketingCustom Marketing
One-to-one marketing
Uses data based-marketing and information technology
For example...
•Your name
•Room preferences
•Special requests
•Smoking or non smoking
•Credit card number
•Frequent hotel user discount
FOR REPEAT HOTEL GUESTS
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Bases for Segmenting Bases for Segmenting Consumer MarketsConsumer Markets
Demographic
Sociographic
Lifestyle
Geographic
Behavior
Consumption
Predispositions
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Bases for Segmenting Bases for Segmenting Business MarketsBusiness Markets
GeographyGeographyOrganizational charateristicsOrganizational charateristics
Purchase behaviorPurchase behaviorUsage patternsUsage patterns
Organizational predispositionsOrganizational predispositions
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PositioningPositioning
The way consumers perceive the brand relative to its competitionID competitive advantageStress salient characteristicsDifferentiate
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Market Positioning Map: Market Positioning Map: Tea - 1980s Tea - 1980s
IcedIced HotHot
Traditional flavorTraditional flavor
Unique flavorUnique flavor
Luzianne Luzianne
LiptonLipton
TetleyTetley
Celestial SeasonsCelestial Seasons
NesteaNestea
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Repositioning: TeaRepositioning: Tea - Late - Late 1990s1990s
IcedIced HotHot
Traditional flavorTraditional flavor
Unique flavorUnique flavor
Luzianne Luzianne
LiptonLipton
TetleyTetley
Celestial SeasonsCelestial Seasons
NesteaNestea
Arizona Iced TeaArizona Iced Tea
SnappleSnapple
Lipton RoundsLipton Rounds
Tetley RoundsTetley Rounds
Lipton Natural TeasLipton Natural Teas
Lipton FlavoredLipton Flavored
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ReviewReview
Define marketExplain market segmentationRelate marketing mixes to target marketsIdentify various marketing strategiesUnderstand key market segment
selection considerationsIdentify and apply segmentation variablesUnderstand positioning strategy