segment ting
TRANSCRIPT
Segmenting
Market: people or institutions with sufficient purchasing power, authority, and willingness to buy
Market SegmentationDividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.
Target market: specific segment of consumers most likely to purchase a particular product
Consumer products: goods or services purchased by an ultimate consumer for personal use
Business products: goods or services purchased for use either directly or indirectly in the production of other goods and services for resale
KC MasterpieceProduct Targeted at Selected Consumers
Cattlemen’sProduct Targeted at the Business Market: Comes in 1 and 5 Gallon Containers. Introduced more than 40 years ago to meet the special needs of foodservice operators
The Role of Market SegmentationMarket Segmentation: division of the total market into smaller, relatively homogeneous groupsNo single marketing mix can satisfy everyone. Therefore, separate marketing mixes should be used for different market segments.
Market segmentation procedure
Stage I - Survey stageStage II - Analysis stageStage III - Profiling stage
Basis for segmenting consumer markets
Geographic segmentationRegionCity
PampersThis ad is an example of geographic segmentation. When visiting the web site look for the different countries Pampers markets to.
Demographic segmentationAgeFamily sizeFamily life cycleGenderIncomeOccupationEducationReligion
•Psychographics segmentation–Life style–Personality
Segmenting Consumer Markets
Product-related segmentation: dividing a consumer population into homogeneous groups based on characteristics of their relationships to the product Can take the form of segmenting based on:• Benefits that people seek when they buy• Usage rates for a product• Consumers’ brand loyalty toward a product
Requirements for Effective Segmentation
• Size, purchasing power, profiles of segments can be measured.
• Segments can be effectively reached and served.
• Segments are large or profitable enough to serve.
Measurable Measurable
AccessibleAccessible
SubstantialSubstantial
DifferentialDifferential • Segments must respond differently to different marketing mix elements & programs.
The Market Segmentation ProcessStage I: Identify Segmentation Process
Stage II: Develop Relevant Profile
Stage III: Forecast Market Potential
Stage IV: Forecast Market Share
Stage V: Select Specific Segment
Identify Segmentation Process
Stage II: Develop Relevant Profile
Stage III: Forecast Market Potential
Stage IV: Forecast Market Share
Stage V: Select Specific Segment
Patterns of target market selection
• Single segment concentration• Selective specialisation• Product specialisation• Market specialisation• Full market coverage– Undifferentiated marketing– Differentiated marketing– Concentrated Marketing
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
Undifferentiated marketing:
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
• Selecting and Executing a Strategy– No single, best choice strategy suits all firms– Determinants of a market-specific strategy• Company resources• Product homogeneity• Stage in the product life-cycle• Competitors’ strategy
Positioning
• Positioning is the act of designing the company’s offerings and image so they occupy a meaningful and distinct competitive position in the target customers minds
POSITIONING
• Using product characteristics• The price – quality approach• The use or applications approach• The product user approach• The cultural symbol approach
Developing new products
• Once a company has carefully– Segmented the market– Chosen target customer groups– Identified their needs– Determined the market positioning
It is ready to develop and launch appropriate new products
What is a new product…
• New to the world products• New product lines• Addition to existing product lines• Improvements in the existing products• Repositioning