implementation of stp in b2b marketing
DESCRIPTION
Book referred to :Marketing Management by Philips Kotler, Kevin Lane Keller, Abraham Koshy and Mithileshwar JhaTRANSCRIPT
Implementation of STP in B2B marketing.
Meghashree Mohan
Implementation of STPD in B2B marketing 2
We can segment business markets with some of the same variables we use in consumer markets such as Geography, Benefits sought ,Usages rate etc but business markets use some other variables also
Source: Marketing management by Kotler, Keller, Koshy, Jha
3
Major segmentation variables for business market
Demographics
industry Which industry to focus?
Company size What size of company to serve?
location What geographical area to serve?
Operating variable
technology What customer technology to focus?
User or non user status Heavy users, medium users, light users or no users?
Customer capabilities Should we serve customers needing many or few services?
Purchasing approaches
Purchasing function organization
Should we serve companies with highly centralized or decentralized purchasing power?
Power structure Should we serve companies that are engineering dominated , financially dominated and so on?
Nature of exiting relationship
Should we serve companies with which we have strong relationship or simply go after the most desirable companies?
General purchasing policies
Should we serve companies that prefer leasing, service contract, system purchasing? Sealed bidding?
Purchasing criteria Should we serve companies that seeking quality ? Service ?price ?
Situational Factors
Urgency Should we serve companies that need quick and sudden delivery or service?
Specific application Should we focus on certain application of our products Ruther that all application?
Size or order Should we focus on large or small orders?
Personal characteristics
Buyer seller similarities Should we serve companies whose people and values are similar to us?
Attitude toward risk Should we serve risk taking or risk avoiding customers?
loyalty Should we serve companies that show high loyalty to their suppliers?
Source: Marketing management by Kotler, Keller, Koshy, Jha
Implementation of STPD in B2B marketing 4
DEMOGRAPHY-Which Industry to serve?
Rubber tyre industry
automobile
aircrafts
segmentation
Fork lift trucks
trucks
Farm tractors
Implementation of STPD in B2B marketing 5
Operating values: Size of the firm or Enterprise
Large
Medium
Small
Very small
Size and number of companies
Large orders from large companies
Implementation of STPD in B2B marketing 6
Laboratory apparatus
making industry
Tissue culture laboratories
Fertilizer testing laboratories
Soil testing laboratory
Medical apparatus
Private lab
University labs
Government labs
Private hospitals
Medical collages
Government hospitals Low price & service
More reliable and accurate
Low price & service
More reliable and accurate
Macro segmentation (I)
Micro segmentation(price , service & utility) (II)
Segmentation basis demography and purchasing ability
Implementation of STPD in B2B marketing 7
Effective segmentation criteria:
I. Measurable: The size, purchasing power are characteristic.
II. Substantial: Large and profitable enough to serve
III. Accessible: effectively reached and served.
IV. Differentiable: conceptually distinguished and respond differently to different marketing mix
V. Actionable: effective program formulated for attracting and serving
Implementation of STPD in B2B marketing 8
Market targeting
After doing the market segmentation the firm has to evaluate the segment of their market potential. Then the company has to decide which and how many segments to serve and how to serve them.
I. Single segment concentrationII. Selective specializationIII. Product specializationIV. Market specializationV. Full market coverage
Implementation of STPD in B2B marketing 9
1)Single product in single market.
2)The farm equipment division of MahindraAnd Mahindra concentrated on tractors, andPrimarily targeted agriculture market.
3)The zodiac brand concentrates on formal shirts on executive and professionals.
4)Some hospitals focus on certain therapeutic area, Heart specialty ,gynecology etc
There are certain risk in single segment concentration :a particular market segment can become sour or a competitor may invade the segment.
Evaluating and Selecting The market Segments(i) single segment concentration
M1 M2 M3
P1
P2
P3
Source: Marketing management by Kotler, Keller, Koshy, Jha
Implementation of STPD in B2B marketing 10
(ii) Selective specialization
M1 M2 M3
P1
P2
P3
1) Specialized product in specialized market.
2) The firm attempts to serve all customer group
Source: Marketing management by Kotler, Keller, Koshy, Jha
Implementation of STPD in B2B marketing 11
(iii) Product specialization
M1 M2 M3
P1
P2
P3
1)Single product in different markets
2)The firms makes a certain product that it sells to several different market segments
3)E.g. A microscope manufacture , for instance ,sells to university, government and commercial laboratories.
Source: Marketing management by Kotler, Keller, Koshy, Jha
Implementation of STPD in B2B marketing 12
(iv) Market specializationM1 M2 M3
P1
P2
P3
1)Various products in single market.
2)The firm concentrates on serving many needs of a particular customer group or market.
Source: Marketing management by Kotler, Keller, Koshy, Jha
Implementation of STPD in B2B marketing 13
(v) Full market coverage
M1 M2 M3
P1
P2
P3
1) Different products in different markets.
2) The firm attempts to serve all customer group with all the products they might need.
3) It is possible for only the large firms
4) E.g. a)Reliance :They have wide
range of products in nearly all kind of markets.
Source: Marketing management by Kotler, Keller,
Koshy, Jha
Implementation of STPD in B2B marketing 14
Tyre Market Segmentation
Indian Tyre Industry
Commercial Vehicles
MHCV HCV LCV
Passenger Vehicles
CarsMotorcycles
Scooters
Others
Farm OTR
Industrial
Vehicles
MHCV : Medium Heavy Commercial VehiclesHCV Heavy Commercial VehicleLCV Light Commercial VehicleOTR Off the Road
Market Segmentation for the Tyre Industry is based on the type of vehicle served.
Implementation of STPD in B2B marketing 15
Bridgestone - Market Specialization
M1 (Cars)
M2 (Trucks)
M3 (2-wheelers)
P1 Touring Tyres
P2 Sport Tyres
P3 Economy Tyres
Bridgestone India has focused on the Passenger Car Segment exclusively as it offers only radial tyres.
Implementation of STPD in B2B marketing 16
MRF : Compete Market Coverage
M1 (Cars)
M2 (Trucks)
M3 (2-wheelers)
P1 Touring Tyres Economy Tyres High Grip Tyres
P2 Sport Tyres Mileage Tyres Touring Tyres
P3 Economy Tyres Endurance Tyres
Best Fit Tyres
MRF holds a diversified portfolio of products spanning the entire tyre market.
Implementation of STPD in B2B marketing 17
Positioning
BRIDGESTONE:
Communication : High Performance, Top Quality & International standard.Punch line: Passion for ExcellenceThis communication is substantiated by association to F1 racing
Communication : Superior Endurance, Strength, Sporty & Home-GrownPunch line: Tyres with MuscleSponsors Cricket & Rally racing to position as high endurance and sporty
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Airlines(market 1)
Passenger transport(market 2)
Goods transport(market 3)
Large computers(product 1)
A,B B B
Midsize computers(product 2)
A
Personal computers(product 3)
AC
Company A Company B Company C
Implementation of STPD in B2B marketing
Customer group/markets
Pro
du
ct
vari
eti
es
Segment by segment invasion plans
Source: Marketing management by Kotler, Keller, Koshy, Jha
DIFFERENTIATIONThe process of distinguishing the differences
of a product or offering from others, to make it attractive to a particular target market.
Source of competitive advantage.The objective of diffrentiation is to develop a
position that potential consumers see as unique.
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