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- 1. PRINCIPLES OF MARKETING Market Segmentation,Targeting, and Positioning for Competitive Advantage
2. Steps in STP 1.Identify Bases for Segmenting the Market 2.Develop Profiles of Resulting Segments 3.Develop Measures of Segment Attractiveness 4.Select Target Segment(s) 5.Develop Positioning for Each Target Segment 6.Develop Marketing Mix for Each Target Segment Market Positioning Market Targeting Market Segmentation 3. Step 1. Market Segmentation Levels of Market Segmentation Mass Marketing Same product to all consumers(no segmentation) Segment Marketing Different products to one or more segments (some segmentation) Local marketing Products to suit the tastes of individuals or locations(complete segmentation) Niche Marketing Different products to subgroups within segments ( more segmentation) 4. Local marketing Products to suit the tastes of individuals or locations(complete segmentation) Local Marketing Tailoring brands/ promotions to local customer groups, i.e Sears Individual Marketing Tailoring products and programs to the needs of individual customers, i.e. Dell 5. Step 1. Market Segmentation Bases for Segmenting Consumer Markets Geographic Demographic Age, gender,family size and life cycle,or incomePsychographic Social class, lifestyle,or personality Behavioral Occasions, benefits, uses, or responses , attitude Nations, states,regions or cities Descriptive 6. Age and Life-Cycle Segmentation P&G targets kids with Crest Kids Cavity Protection toothpaste.Its gentle on tooth enamel and has fun- filled sparkles and sparkle fun flavor just for kids. 7. Psychographic Segmentation When Honda markets its ACTIVA , it appeals to the rebellious, independent women & girls. 8. Using Multiple Segmentation Bases:Geodemographics 9. Step 1. Market Segmentation Bases for Segmenting Business Markets Bases for Segmenting Business Markets Demographics Personal Characteristics Situational Factors Operating Characteristics Purchasing Approaches 10. Step 1. Market Segmentation Bases for Segmenting International Markets Political/ Legal CulturalIntermarket Economic Geographic Industrial Markets 11. Step 1. Market Segmentation Requirements for Effective Segmentation
- Size, purchasing power, profiles
- of segments can be measured.
- Segments must be effectively
- reached and served.
- Segments must be large orprofitable enough to serve.
Measurable Accessible Substantial Differential Actionable
- Segments must responddifferently to different marketing mix elements & actions.
- Must be able to attract and servethe segments.
- Choose a partner and make a list of the market segments to which you belong.What segmentation variables did you take into consideration when you placed yourself into those segments?
Interactive Student Assignment 13. Step 2. Market Targeting Evaluating Market Segments
- Segment Size and Growth
- Analyze sales, growth rates and expected profitability .
- Segment Structural Attractiveness
- Consider effects of:Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers.
- Company Objectives and Resources
- Company skills & resources relative to the segment(s).
- Look for Competitive Advantages.
14. Step 2.Market Targeting Market Coverage Strategies Segment 1 Segment 2 Segment 3 Segment 1 Segment 2 Segment 3 Company Marketing Mix Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3 Market A.Undifferentiated Marketing B.Differentiated Marketing C.Concentrated Marketing 15. Step 2. Market Targeting Choosing a Market-Coverage Strategy CompanyResources Product Variability Products Stage in the Product Life Cycle MarketVariability Competitors Marketing Strategies 16. Step 3. Positioning for CompetitiveAdvantage
- Positioning the act of designing company offering & image to occupy distinctive place in the mind of target market
- Points -of -difference (PODs)
- Attributes or benefits consumers strongly associate with brand
- E.g.- FedEx (overnight delivery), Nike (performance)
- Points-of-parity (POPs)
- Associations that are not necessarily unique to brand but may be shared with other brands
17. Developing CompetitiveDifferentiation Product Service Personnel Image Areas for Competitive Differentiation 18. Services Differentiation (e.g., speed, convenience, careful delivery) ProductDifferentiation (e.g., consistency, durability, reliability, repairability ) Identifying Possible Competitive Advantages People Differentiation (e.g., hiring, training better people than competitors) Image Differentiation (e.g., convey benefits and positioning) Channel Differentiation 19. Image symbols media Events Atmosphere 20. Steps to Choosing and Implementinga Positioning Strategy
- Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation.
- Step 2. Selecting the right competitive advantage.
- Step 3. Effectively communicating adn delivering the chosen position to the market.
21. Selecting the Right Competitive Advantages Criteria for Determining Which Differences to Promote Affordable Superior Profitable Preemptive Distinctive Important Communicable 22. Positioning Errors
- Under positioning:
- Failing to really position the company at all.
- Over positioning:
- Giving buyers too narrow a picture of the company.
- Confused Positioning:
- Leaving buyers with a confused image of a company.
- Doubtful positioning:
- Buyers may find hard to believe the brand claims in view of product features , price or manufacturer.
23. Step 3. Positioning for CompetitiveAdvantage: Strategies Against a Competitor Usage Occasions Away from Competitors Product Attributes Product Class Benefits Offered Users B A E D C H G F