Transcript Hotel Market Segments - Profsamkulka's Weblog | Just
Market Segmentation, Targeting and Positioning
By : Prof Sameer Kulkarni 1
The Starting Point
• Mass Marketing: The Seller engages in – 1. Mass marketing>mass production>mass distribution>and mass promotion ONE PRODUCT FO ALL BUYERS.
It creates the largest potential market>leads to lower costs>lower prices>higher margins 2
Segment Marketing
• Role of Marketer • The marketer does not create the segments • The marketer identifies the segments and decide which one to target • The company can better design>price>disclose& deliver the product to satisfy the target market .
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Benefits of Segmentation
• Effective use of resources • Gain a focus • Create Value for a target market • Positioning 4
Steps in Market Segmentation, Targeting, and Positioning
Market Segmentation
1. Identify bases for segmenting the market 2. Develop segment profiles
Market Targeting
3. Develop measure of segment attractiveness 4. Select target segments
Market Positioning
5. Develop positioning for target segments 6. Develop a marketing mix for each segment 5
Step 1. Market Segmentation Levels of Market Segmentation Through Market Segmentation, Companies Divide Large, Heterogeneous Markets into Smaller Segments that Can be Reached More Efficiently And Effectively With Products and Services That Match Their Unique Needs.
Mass Marketing Same product to all consumers (no segmentation, i. e. a commodity) Segment Marketing Different products to one or more segments (some segmentation, i.e. Thumsup) 6
Steps in Market Segmentation, Targeting, and Positioning
Market Segmentation Market Targeting Market Positioning 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments 3. Evaluate attractiveness of each segment 4. Select the target segment(s) 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept
Basic Market-Preference Patterns
(a) Homogeneous preferences (b) Diffused preferences (c) Clustered preferences Sweetness Sweetness Sweetness
Step 2. 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)
Niche Marketing
Different products to subgroups within segments (more segmentation)
Micromarketing
Products to suit the tastes of individuals and locations (complete segmentation)
Local Marketing Individual Marketing
Tailoring brands / promotions to local customer groups Tailoring products/ programs to individual customers
Bases for Segmenting Consumer Markets
Geographic Region, City or Metro Size, Density, Climate Demographic Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...
Psychographic Lifestyle or Personality Behavioral Occasions, Benefits, Uses, or Attitudes
Step 3. Market Segmentation Geographic Segmentation International National Regional/City 11
Geographic Bases
• Region • Density • Climate • Population
Step 4. Market Segmentation
Bases for Segmenting Business Markets
Personal Characteristics Situational Factors Demographics Bases for Segmenting Business Markets Operating Characteristics Purchasing Approaches
Step 5. Market Segmentation Demographic Segmentation • Dividing the market into groups based on variables such as: – Age – Gender – Family size or life cycle – Income – Occupation – Education – Religion – Race – Generation – Nationality 14
Step 6. Market Segmentation Psychographic Segmentation Divides Buyers Into Different Groups Based on: 15
Step 7. Market Segmentation Behavioral Segmentation • Dividing the market into groups based on variables such as: – Occasions – Benefits – User status – Usage rate – Loyalty status – Readiness stage – Attitude toward product 16
Behavioral Bases
• User Status & Brand Loyalty • Personality/Lifestyle • Social Class • Occasion • Readiness to Buy • Benefits Sought • Usage Rate
Step 8. Market Segmentation
Segments must respond differently to different marketing mix elements & programs R equirements for effective segmentation Measurable Accessible Substantial Actionable
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Size, purchasing power, profiles of segments can be measured.
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Segments can be effectively reached and served.
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Segments are large or profitable enough to serve.
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Effective programs can be designed to attract and serve the segments.
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Evaluating Market Segments
• Segment size and growth • Segment structural attractiveness • Company objectives and resources 19
Step 9. Market Targeting Market Coverage Strategies
A. Undifferentiated Marketing Company Marketing Mix
Market
B. Differentiated Marketing
Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3 Segment 1 Segment 2 Segment 3 Company Marketing Mix
C. Concentrated Marketing
Segment 1 Segment 2 Segment 3 20
Step 10. Market Targeting
Evaluating Market Segments Segment Size and Growth Analyze sales, growth rates and expected profitability for various segments.
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.
Choosing a market-coverage strategy
• Company resources • Degree of product homogeneity • Market homogeneity • Competitors’ strategies 22
P1
Five Patterns of Target Market Selection
Single-segment concentration M1 M2 M3 Selective specialization M1 M2 M3 Product specialization M1 M2 M3 P1 P1 P2 P3 P2 P3 P2 P3 P = Product M = Market P1 P2 P3 Market specialization M1 M2 M3 P1 Full market coverage M1 M2 M3 P2 P3
Step 11. Market Targeting
Choosing a Market-Coverage Strategy
Company Resources Product Variability Product’s Life-Cycle Stage Market Variability Competitors’ Marketing Strategies
Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the the target market’s mind.
• Step 12: Positioning for Competitive Advantage Product’s Position - the way the product is
defined by consumers
on important attributes the place the product occupies in consumers’ minds relative to competing products.
Marketers must: –
Plan
positions to give their products the greatest advantage in selected target markets 26
Positioning Strategies
• Positioning by specific product attributes • Positioning by benefits • Positioning for user category • Positioning for usage occasion • Positioning against another competitors • Positioning against another product class 27
Steps to Choosing and Implementing a Positioning Strategy • • • Step 1. Identifying Possible Competitive Advantages: Competitive Differentiation. Step 2. Selecting the Right Competitive Advantage: Unique Selling Proposition (USP).
Step 3. Communicating and Delivering the Chosen Position.
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The BCG Competitive Advantage Matrix
Number of Approaches to Achieve Advantage Few Many Large Volume Specialized Small Stalemated Fragmented
Product Differentiation
• Physical attributes • Service differentiation • Personnel differentiation • Location • Image differentiation 30
Product Differentiation
Form Fea tures Perfor mance Quality Conform ance Quality Dura bility Relia bility Repair ability Style Design
Services Differentiation
Ordering Ease Installation Customer Consulting Delivery Customer Training Maintenance & Repair
Which differences to promote?
• Important to customers • Distinctive • Superior • Communicable to customers • Preemptive • Affordable • Profitable 33
Image Differentiation
Media Atmosphere Symbols Events
Important Profitable Distinctive Affordable Differences Worth Establishing Superior Preemptive
Perceptual Map
Positioning map of service level versus price.
Source: MARG, 2007 36
Positioning Strategies
• Product Attributes • Benefits, Problem Solutions & Basic Needs • •Cholesterol Free Oil:Dhara • Specific Use : Gift for all Events Titan • Against Other Products: Tata salt Vs. Captain Cook • Product User : Fashion loving , Well to do Consumers :Vimal fabrics • Against a Competitor •Price & Quality