Transcript 1
1 Market orientation as philosophy Market segmentation Targeting market Positioning Marketing mix 2 Select base for segmentation and identify appropriate market segments e.g. groups, individuals, organiztions. Evaluate and appraise the market segments resulting from the first step. Select an overall market targeting strategy and specific target segments. Tailoring a distinct position in selected markets Developing marketing mixes that serve desired positioning strategy in the marketplace Auditing marketing environments and efforts 3 The focus of a successful marketing program is the customer. Effectively marketing must fully understand the needs. Customers with decent life and individualism have Heterogeneous demands, This has given rise to need segmenting. The process of understanding the customer and choosing a group of customer you can serve best is targeting. So target a segmentation is core of the marketing process. 4 Identify Total Market Effective Segmentation Bases for Segmentation Select Target Segment Positioning Strategy Marketing Mix Monitor, Evaluate and ControlObjective 3 5 The first step in the target market selection process is to specifically define the total market of all potential customers for a product category. 6 Segmenting means dividing a heterogeneous demanding markets into homogenous groups based on similar characteristics or traits Heterogeneous demand- different groups of customers have differing needs from specific products. Homogeneous segment- the separation of markets into distinctive groups based on homogeneous characteristics. 7 8 •Clear differences in consumer preferences for a product must exist. 9 •Difference preferences for a product must be identifiable and capable of being related to measurable variables. 10 Criteria for successful segmentation •The proposed market segment must have enough size and purchasing power to be profitable. 11 •Companies must be able to respond to difference preferences with an appropriate marketing mix. 12 •The proposed market segment must be readily accessible and reachable with market programs. 13 To divide a market into segments, firms use segmenting criterion that describe the characteristics of each part of the market. 14 Demographic Segmentation Segmentation Geographic Segmentation Situation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Benefits-Sought 15 Income Level Life-cycle Social class Education Ethnic 16 Demographic Segmentation Segmentation Geographic Segmentation Situation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Benefits-Sought 17 Localizes its marketing efforts to specific geographic regions 18 Demographic Segmentation Segmentation Geographic Segmentation Situation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Benefits-Sought 19 Grouping customers together based on social class, lifestyles and psychological characteristics (attitudes, interests and opinions) Useful but more difficult to identify and measure compared to demographic variables 20 Demographic Segmentation Segmentation Geographic Segmentation Situation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Benefits-Sought 21 Markets can be segmented based on the benefits that consumers desire from using a specific product 22 Demographic Segmentation Segmentation Geographic Segmentation Situation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Benefits-Sought 23 Purchase situation or occasion Physical surroundings Social surroundings Temporal perspective 24 Demographic Segmentation Segmentation Geographic Segmentation Situation Segmentation Psychographic Behavior/Usage Segmentation Segmentation Benefits-Sought 25 Markets can be segmented by how often or how heavily consumers use a specific product Pareto’s Principle or 80/20 Principle - 80% of revenue generated by 20% of customers Light Users 80% Heavy Users 20% 26 Information for segmenting markets may be obtained from database such as Census, State Statistics etc. 27 While the steps in the target market selection process are essentially the same for business markets, there are three major differences: The purchasing process, which differs greatly from the household consumer market. The use of different segment variables, in simple way, a Standard Industrial classification is often employed 28 Segmentation variables used to segment business markets: Size Industry Purchasing approaches Product usage Situational factors (seasonal trend) Geographic 29 Targeting: choose the specific segment toward which a firm directs its market efforts. Niche Marketing: the process of targeting a small market segment with a specific, specialized marketing mix (not core products on offer). Micromarketing- the process of targeting smaller, more narrowly defined market segments. On the individual consumer end of the continuum, a firm may decide to target individual consumers and personalize marketing efforts toward each. 30 Can effectively serve all the segments, must target marketing efforts to a segment or segments. Marketing opportunities and unfilled ‘gaps ’ are more accurately identified Marketing mix is more delicately meet toe potential customer’s needs Offer the greatest potential to achieve profit or relationship goals 31 1.Undifferentiated marketing 2.Differentiated marketing 3.Concentrated marketing 4.Custom marketing 32 Undifferentiated targeting strategy Concentrated strategy Differentiated strategy Companies might develop one marketing mix strategy that is appropriate for all members of the total market. 33 Undifferentiated targeting strategy Concentrated strategy Differentiated strategy Only one marketing mix is developed and directed toward a few, or perhaps one, profitable market segments. 34 Undifferentiated targeting strategy Concentrated strategy Differentiated strategy Exists when a firm develops different marketing mix plans specially tailored for each of two or more market segments. 35 Positioning Kotler defined: “designing an offer so that it occupies a distinct and valued place in the minds of the target customer.” 36 Positioning Image that customers have about a product in relation to the product’s competitors 37 Key to developing the appropriate marketing mix is the positioning strategy of the product. 38 All products have object and subject attributes Recognizable Comparable 39 Effective positioning What consumers currently think about the product, especially in relation to competing products What the marketer wants consumers to think about the product Which positioning strategy will elevate the consumers’ current product image to the desired product image. 40 Position Mapping also called as perceptual mapping- creating a visual description about consumer perceptions of a product on two or more dimensions in relation to competitors. 41 42 43 The positioning strategy must determine where a company wants to go And how to get there by positioning the product according to any of the following ways: Price/Quality Product Attributes Product User Product Usage Product Class Competition Symbol 44 Identify Total Market Segmentation Bases for Segmentation Select Target Segment Positioning Strategy Marketing Mix Monitor, Evaluate and ControlObjective 3 45 The final steps are to develop and a marketing mix matched to the needs of the target market This must support the chosen positional strategy in the selected target markets Therefore determine the ‘4Ps ’ or “7Ps” of its marketing mix as a tool to achieve the desired position 46 Productcustomer value Pricecost Placeconvenience Promotioncommunication Peopleconsideration Processesco-ordination Physical evidenceconfirmation 47 Place Product (Distribution) Marketing Mix Promotion Price Objective 4 48 Product Refers to goods, services, people, places and ideas Household consumers Business-to-business customers 49 Place (Distribution) Marketing channel is the network of organizations that create time, place and ownership utilities for household consumers and business customers. 50 Integrated Marketing Communication (IMC) System of management and integration of marketing communication elements Advertising, publicity, sales promotion, personal selling, sponsorship marketing, and point-of-purchase communications Promotion 51 Pricing decisions are complex and are driven by a variety of considerations including: Customer demand, costs, information availability, competition, profit motives, product considerations, and legal considerations Price 52