segementatiion targeting positiong
TRANSCRIPT
Understanding and Influencing Organizational Buyer Behavior
DecisionBehaviorDecisionBehavior Customer
NeedsCustomer
Needs
AccurateTarget
AccurateTarget
GrowthRate
GrowthRate
Product
Price
Distribution
Service
Communication
Marketing Communication Message BehaviorPrograms Channels Processor Desired
SalesForceExperienceTrade ShowsAdvertisingCompetitors
OrganizationConsumer
PreferredSupplier
Product Purchase
PurchaseFrequency
Customer Loyalty
Organizational Buyer
Users
Gatekeepers
Influencers
Deciders
Who is the Organizational Consumer Decision Maker?
IdentifyingValue in theMarketplace
Determining Value Capabilities
Missionand MarketingObjectives
Planning The Marketing Program
CustomerValue
SelectivityConcentration
DifferentialAdvantage
COREMARKETINGSTRATEGY
Strategy Formulation
Marketing Programs
COREMARKETINGSTRATEGY
ProductPolicy andStrategy
Pricing
Relationships
Communicating
Value
Evaluation
EVALUATINGVALUEDELIVERY
MARKETINGPROGRAMS
Segmentation, Targeting and Positioning
British Tobacco and Phillip Morris focused on industrialising countries showing cigarette as fashionable status symbol and lifestyle..
Developing Market-Oriented Strategies in Broad Product-Markets
Combined Target Market Approach
Multiple Target Market Approach
Single Target Market Approach
Market Segmentation Strategies
Global Market Segmentation The process of sub-dividing a market into
distinct, actionable, homogeneous, substantial subsets.
1. Geographic Segmentation2. Demographic(income and population)3. Psychographic(values, attitudes, lifestyles)4. Behaviour characteristics.5. Benefit Sought6. Business Environment(soft, hard, regulations)7. Segmenting Industrial Markets / Size / Value /Standards / Industrial Classification /
Geographic and Demographic
Whether to go to triad, EU, US and Japan(high income)
Industrialising countries(Chine, India, Brazil-middle income)
African continent(low income) On the basis of population demographic
distribution.
Psychographic Segmentation Backer Spielvogel & Bates’ Global Scan -
labelled segments as strivers, achievers, pressured, traditional and adapters. Percentage varied from country to country.
1. Strivers: young 31 yrs, hectic achievement driven life, materialistic but having less time and money.
2. Achievers: older than strivers, affluent, assertive, attained success and upward mobile, status and quality conscious.
3. Pressured: largely women of all ages, having constant family and financial pressures.
4. Adaptors: older, contented people who maintained their values with open minds.
5. Traditional: rooted to past, heritage, cultural values.
Young and Rubicam’s Cross cultural consumer Characteristics
Constrained(resigned- staples and price driven and struggling poor-look for discount)
Middle majority(happy mainstreamers-habit brand loyal, unhappy aspirers- conspicuous consumptions, happy succeeders-luxury and quality)
Innovators(rebellious transitional-unique impulsive products, improve world reformers-home made or ecological products)
Behaviour Segment
Whether they buy use and the frequency of usage.
1. Uses: heavy, light, non-users.2. User status: potential, non, ex-, regular,
first time and competitors and products users.
Benefit Segment:on the basis of benefit sort.
Target Marketing
Who are the Target Customers?
Which markets should be targeted?
Why are these markets targeted?
Can we describe Customer need requirements?
Agree on Target Market/Segments
Summarize Customer Need Requirements
Focus activities on Target Market
Developing Market-Oriented Strategies in Broad Product-Markets
Combined Target Market Approach
Multiple Target Market Approach
Single Target Market Approach
This approach segments the marketand picks one of the homogeneoussegments as the firm's target market.
The segmenter here aims at onesubmarket with one marketing mix.
TheStrategy
Single Target Market Approach
Developing Market-Oriented Strategies in Broad Product-MarketsCombined Target
Market ApproachMultiple Target
Market ApproachSingle Target
Market Approach
This approach segments the marketand chooses two or moresegments as the firm's target market.
The segmenter here aims at two or more submarkets with a different marketing mix for each.
Strategy1
Strategy 2
Strategy3
Multiple Target Market Approach
Developing Market-Oriented Strategies in Broad Product-Markets
Combined Target Market Approach
Multiple Target Market Approach
Single Target Market Approach
This approach combines two or moresubmarkets into a larger target marketas a basis for one strategy.
The combiner here aims at twosubmarkets with one marketing mix.
TheStrategy
Combined Target Market Approach
Step 1-Identify Similar Micro Segments
Basis for Micro-Segmentation– Similar Buying
Center Processes
– Functional Customer Needs
– Stages in Buying Process
M ic roseg m en t 1 M ic roseg m en t 2
B as is :C h arac tris tic s o f th e
D ec is ion M ak in g U n it
M ac roseg m en t 1
M ic roseg m en t 1 M ic roseg m en t 2
B as is :C h arac tris tic s o f th e
D ec is ion M ak in g U n it
M ac roseg m en t 2
B as isS ize ,L oca tion ,In d u s try
A ll P o ten tia l C u s tom ers
Step 2-Identify Level of Decision Participants Influence
Identify Similar MicroSegments Across Macro Segments Similar Buying Center
Processes Functional Customer
Need Requirements Stages in the Decision
Process
BUYGRID FRAMEWORK
New Modified StraightTask Rebuy Rebuy
Need Recognition
ProductCharacteristics
InformationSearch
Evaluation
Decision
Evaluation
Step 3- Identify Most Important Benefits Sought
Personal Interviews Focus Groups
– Open ended
– Concentrate on how customers use the product.
– Possible Improvements
– Wishes
ProductNeed
PurchaseDecision
PRICING
QUALITY
SUPPLYGUARANTEE
CUSTOMERSERVICE
PRESTIGE
SECURITY
RELATIONSHIP
MOTIVATION
Step 4-Develop Customer Attribute/Benefit List
Replace Air with Oxygen
Apparatus for Mixing, dissolution and utilization of Oxygen
Control System to Maintain Peak Efficiency
2/3 Treatment Processing Time
5X Poundage Removal
Ability to absorb shock loads
Reduce Operating Costs
Step 5- Have Decision Makers Prioritize Benefits
Easy to reach keys
100
Makes me relax
80
I got my moneys worth
50
Customer Sort Customer Attributes
Customers Choose Exempler from each pile
Customer rate importance of each pile
Customer rate current performance
Cluster Analysis Helps to Reveal-Voice of the Customer
•Can add Coolant without replacing cartridge•Cooling material does not affect contents•Cooling material takes up a minimum of space
•Keeps contents cold•Cools effectively•Keeps contents warm
Use Convenient Cooling Mechanism
Temperature isControllable
MaintainsTemperatureof Package Contents
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Step 6- Identify Stage of Involvement in Decision
Involvement varies across organizational functions
Segmentation Matrix
Segment Names
Benefits Sought
PriorityRanking
Identify,Select, and Describe the Target Market
Product or Service____________________
Target Segment_______________________
Segment Size_________________________
Key Decision Makers___________________
Key Customer Needs
1.____________ 2.____________
3.____________ 4.____________
Global Targeting
Act of evaluating, comparing and selecting the prospective segment with highest potential.
Criteria: 1. Size and growth potential(China)2. Potential competition(Kodak-Fuji fight in US,
Europe)3. Compatibly and feasibility with company’s
mission and objectives(Coke’s challenge to Pepsi in Russia)
Selecting a Global Target Market Strategy
Standardised global marketing: same marketing mix extensive distribution, more sales less production cost(Revlon –’Shake Your Body’ campaign)
Concentrated global marketing: To reach single focused segment (Winterhalter sells dishwasher only to restaurant, Estelle Lauder cosmetic to upper upper segment only)
Differentiated global marketing: targeting two or more distinct segments with different marketing mix.
Positioning The Product
Specify Target Market Specify Key Benefit Specify Key Support Specify Differential
Advantage
Develop Positioning Statement
Get Team Buy In
PRODUCT POSITIONINGDIFFERENTIAL ADVANTAGE
DifferentialAdvantage
Non differentialAdvantage
FunctionalPsychological
Economic
Non PriceCompetition
PriceCompetition
SustainableDifferentialAdvantage
How do our customers perceive us in relation to our competitors?
What is our image?
"Segmenting" the Segment
Positioning Strategies May Be Based On:Establishing a Differential Advantage
CompetitiveAnalysis
CustomerAnalysis
PotentialAdvantage
Identify NewDifferentialAdvantage
Satisfies KeyCustomerNeed
TargetMarket
Segment
CanCompetition
Match
DifferentialAdvantage
No No
YesYes
No
Specific Features
Benefits, Problem solutions, Needs
Specific Usage Occasions
User Category Against another
Product Product Class
disassociation
Positioning Examples
Canon Compact Big Copier
Xerox
Luxury Features
3M Reliability, Quality
Mita Simple to Use
Minolta Works with you
Sharp Options/Features
Natural Brand Positioning
PerceivedPrice
StandardizedPhysicalCharacteristic
-20
+20
-1 +1
Positioning Statement Format
Convince [Our Target Market] that
[Customer Benefits Sought] because
[How Our Strategy Provides Benefits]
Target Market and Positioning
Product or Service_______________
Target Market Segment_____________
Convince_______________________ thatTarget Market
_______________________________ BecauseCustomer Benefits Sought
_________________________________How our strategy provides benefits
Global Product PositioningActing on consumers mind rather that the product. High tech positioning
1. Technical products: computers, microprocessors, RAM.
2. Special interest products:Adidas, Sports, I-Pods
3. Product that demonstrates well : Polaroid camera High touch positioning: focus more on image than
specialised technical information.
1. Product for common problems showing slice of life.
2. Global village products: mineral water, designer fashions and pizza etc.
3. Universal theme based products: ruggedness and heroism of Harley Davidson
Developing Objectives
Which type of objective should be emphasized?
Should the type of objective vary by segment and customer target?
What criteria should be used to assess objectives?
Develop Objectives– By Market Segment
– By Geography
– By Customer Target
Template for Good Objectives
____________ percent of _____________A quantifiable number Target Customer
will _______________ the ____________Objective Product or Service
in ________________.Time Frame
Evaluating Market Feasibility
Industry Demand Market Share Required Investments Costs Performance.