-MARKET SEGMENTATION-TRUNG HIEUTU OANH
YOUNG MARRKETERS
ELITE 2
1. MARKET SEGMENTATION
2. BRAND EQUITY
WHAT IS MARKET SEGMENTATION
MASS MARKETING MARKET SEGMENTATION TARGET MARKETING
is when almost the same product is used
for promotion & distribution for all
customers
is the process of understanding & dividing
the market into distinct groups of
consumers according to their needs,
characteristics or behaviors. It’s also a
compromise between mass marketing &
target marketing.
is a practice to identify and segment the
market & develop products and marketing
mixes for each segment or group of
customers
WHY MARKET SEGMENTATION
STRATEGY OFFERING MARKETING TACTICS
-Target market
-Offering strategy
-Product line
-Associated Service Bundle
-Advertising & other communication
(message & media)
-Distribution -Channels
-Pricing -Sales force allocation
-Promotion
Segmentation has great impact on strategy & tactical development
“understanding why people buy products and services like yours, which of those people you can best satisfy and what you can do to
make your product simply irresistible to them”
WHY MARKET SEGMENTATION-Segmentation allows firm to better satisfy the needs of its potential customers.
-Segmentation allows us to choose which buyers to target & provides important insights as how to appeal to them.
-Segmentation helps us use resources effectively, gain a focus, create value for target market & position our brand.
A GOOD MARKET SEGMENTATION IS
- Identifiable: the differentiating attributes of the segments must be measurable so that they can be identified
- Accessible: the segments must be reachable through communication and distribution channels
- Substantial: the segments should be sufficiently large to justify the resources required to target them
- Unique needs: to justify separate offerings, the segments must respond differently to the different marketing mixes.
- Durable: the segments should be relatively stable to minimize the cost of frequent changes.
Good market segmentation will result in segment members that are internally homogenous and externally
heterogeneous; that is, as similar as possible within the segment, and as different as possible between segments
Segmentation should be able to
help an organization rapidly
evaluate new business
opportunities
STRATEGIC
LEVEL
Segmentation should yield
information to help craft successful
marketing offers for specific
prospects
OPERATIONAL
LEVEL
BASES FOR SEGMENTATION
DEMOGRAPHIC GEOGRAPHIC PSYCHOLOGICAL BEHAVIORAL
-Age
-Income
-Marital status
-Gender
-Education
-Family size
-Social status
-Occupation
-Region
-Size of metropolitan
-Population density
-Climate
-Activities
-Interests
-Opinions
-Attitudes
-Values
-Benefits sought
-Usage rate
-Brand loyalty
-User status
-readiness to buy
EXAMPLE: PAINT INDUSTRY1st
apartmentMoving in
Getting
childrenBuying
house
Remodeli
ng project
Summer
cottage
moving
Opportunity Industry
focus
INDUSTRY FOCUS
PRODUCT: technical properties (in/outdoor, surface, water repellant,…)
PRICE: price driven
PLACE: paint retailer
PROMOTION: segment aligned (TV, POSM, magazines,…)
OPPORTUNITY
PRODUCT: relevant added value (non toxic, anti bacteria, eco friendly)
PRICE: premium
PLACE: paint retailer
PROMOTION: segment aligned (children magazine)
EXAMPLE: DOVE
Marketing mix Segments
WOMAN
WOMAN , 50+
SUN
MEN
WHAT IS BRAND EQUITY
FIRM
BRAND 1
BRAND 2
BRAND 3
MARKETING
MARKETING
MARKETING
CONSUMER
BRAND EQUITY is how consumers think, feel, and act
with respect to the brand, as well as the prices, market
share & profitability that the brand commands for the
firm.
It’s important intangible asset that has psychological &
financial value to the firm
CONSUMER-BASED BRAND EQUITY
-
Consumer-based equity can be defined as the differential effect that brand
knowledge has on consumers’ response to the marketing activities of that brand
Customer-based brand equity occurs when the consumer has a high level of
awareness and familiarity with the brand and holds some strong, favorable, and
unique brand associations in memory.
Brand equity arises from differences in consumers’ response. They are the result
of consumers’ knowledge about the brand in the way they have felt, learnt, seen
& heard. Brand equity are reflected in perceptions, preferences & behaviors
related to all aspects of brand marketing.
BRAND EQUITY ELEMENTS
BRAND EQUITY
Name/symbol
BRAND
LOYALTY
PERCEIVED
QUALITYBRAND
AWARENESS
BRAND
ASSOCIATION
OTHER BRAND
ASSETS
Provide value to
customers by
enhancing customers’:
• Interpretation/Process
ing of information
• Confidence in the
Purchase decision
• Use satisfaction
Provide value to firm
by enhancing:• Efficiency &
effectiveness of
marketing programs
• Brand loyalty
• Prices/Margins
• Brand extensions
• Trade leverage
• Competitive
advantage
Brand equity creates value for
both the customer and the
firm.
BRAND EQUITY ELEMENTS: CONTINUEBRAND LOYALTY
Reflects how likely a customer
will be to switch to another
brand, especially when that
brand makes a change, either
in price or in product features.
• Reduced marketing costs
• Trade leverage
• Attracting new customers
via awareness and
reassurance
• Time to respond to
competitive threats
BRAND AWARENESS
Is the ability of potential buyer
to recognize or recall that
brand in a certain product
category
• Anchor to which other
associations can be
attached
• Familiarity which leads to
liking
• Visibility that helps gain
consideration
• Signal of
substance/commitment
PERCEIVED QUALITY
Perceived quality is a
perception by customers of
the overall quality or
superiority of a product or
service.
• Reason to buy
• Differentiate/ position
• Price premium
• Channel member interest
• Brand extensions
BRAND ASSOCIATIONS
A brand association is
anything “linked” in memory
to a brand.
• Help Process/Retrieve
Information
• Differentiate/Position
• Reason-to-Buy
• Create Positive
Attitudes/Feelings
• Basis for Extensions
OTHER BRAND ASSETS
Such as: patents, trademarks,
channel relationships, etc.
• Competitive advantages
HOW TO MEASUREThe Customer-based brand equity concept does not only show us steps
to get the highest objective of a brand - brand loyalty but also gives
guidance to measure brand by analyzing consumers’ both rational and
emotional responses based on their brand knowledge.
- Indirect approach: assess potential sources
of customer-based brand equity by identifying
and tracking consumers’ brand knowledge—all
the thoughts, feelings, images, perceptions,
and beliefs linked to the brand.
- Direct approach: assess the
actual impact of brand
knowledge on consumer
response to different aspects of
the marketing program.
EXAMPLES
RESONANCE
Consumer involvement,
community, attachment
JUDGEMENT FEELING
Innovative, loyalty,
leader, superiority
Happiness, sharing,
celebration, unify,
family & friends, self-
respect
PERFORMANCERefreshment,
unique flavor,
reference of colas,
energy, tasty
IMAGERY:
Happiness, Moments,
Christmas, social, fun
SALIENCE
Lovemark, everywhere, American values, fresh drink, sharing happiness,
community
RESONANCE
Fanta is among the most
well-known beverages
on the French soda
market. Strong customer
loyalty amongst teens
JUDGEMENTTaste & color:
recognizable.
Teens beverage:
mothers are purchases
& care about family
Fun, excited,
belonging to a
community,
reassuring, social
approval
FEELING
PERFORMANCEHigh tenure in fruit (12%), no
pulp, natural colorants.
No use of sugar but criticism
on the use of aspartame:
nuances credibility
IMAGERYConsuming a common
experience, less serious,
teenager drink
SALIENCEStrong historical inheritance. Redefined its positioning: Stronger awareness
among teens. High recognition and recall on the fruit soda market: strong
French market
THANK YOU