Post on 24-Jan-2017
transcript
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Segmentation & Target Marketing
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Learning OutcomesDescribe the characteristics of markets and market segments
Explain the importance of market segmentation
Discuss criteria for successful market segmentation
Describe the bases commonly used to segment consumer markets
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Learning Outcomes List the steps involved in segmenting markets
Discuss alternative strategies for selecting target markets
Explain one-to-one marketing
Explain how and why firms implement positioning strategies and how product differentiation plays a role
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Describe the characteristics of markets
and market segments
Market SegmentationLOI
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7 5
(1) people or organizations with
(2) needs or wants, and with
(3) the ability and
(4) the willingness to buy.
A group of people that lacks any one of these characteristics is not a market.
What is a Market...
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Market Segmentation
MarketPeople or organizations with needs or wants and the ability and willingness to buy.
MarketSegment
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
MarketSegmentation
The process of dividing a market into meaningful, relatively similar, identifiable segments or groups.
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Segmentation Exercise
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Explain the importance of market segmentation
The Importance of Market Segmentation
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Markets have a variety of product needs and preferences
Marketers can better define customer needs
Decision makers can define objectives and allocate resources more accurately
The Importance of Market Segmentation
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Discuss criteria for successful market
segmentation
Criteria for Successful Segmentation
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
SubstantialitySegment must be large
enough to warrant a special marketing mix.
Identifiabilityand
MeasurabilitySegments must be identifiable and
their size measurable.
AccessibilityMembers of targeted segments
must be reachable with marketing mix.
Criteria for Segmentation
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Describe the bases commonly used to
segment consumer markets
Bases for Segmenting Consumer Markets
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Usage Rate
Benefits Sought
Psychographics
Demographics
Geography
Bases for Segmentation
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO4 Geographic Segmentation
Region of the country or world
Market size
Market density
Climate
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO4 Demographic Segmentation
Age
Gender
Income
Ethnic background
Family life cycle
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO4 Family Life Cycle
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Family Life Cycle Exercise
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO4
Personality
Motives
Lifestyles
Geodemographics
Online
http://
Bases for Psychographic Segmentation
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO4
BenefitSegmentation
Benefit Segmentation
The process of grouping customers into market segments according to the benefits they seek from the product.
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO4 Benefit Segmentation
Usage-RateSegmentation
Dividing a market by the amount of product bought or consumed.
80/20Principle
A principle holding that 20 percent of all customers generate 80 percent of the demand.
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
REVIEW LEARNING OUTCOMEBases for Segmenting Consumer Markets
LO4
Geography Demographics Psychographics Benefits Usage Rate
• Region• Market size• Market
density• Climate
• Age• Gender• Income• Race/ethnicity• Family life
cycle
• Personality• Motives• Lifestyle• Geodemo-
graphics
• Benefitssought
• Former• Potential• 1st time• Light or
irregular• Medium• Heavy
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
List the steps involved in segmenting markets
Steps in Segmenting a MarketLO6
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
REVIEW LEARNING OUTCOMESteps in Segmenting MarketsLO6
Select a market
for study
Choosebases
for segmen-
tation
Selectdescriptors
Profileand
analyzesegments
Selecttarget
markets
Design,implement,
maintainmarketing
mix
1 53 42 6
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Discuss alternative strategies for selecting target markets
Strategies for Selecting Target MarketsLO7
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7
A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.
Strategies for Selecting Target Markets
TargetMarket
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7
ConcentratedStrategy
UndifferentiatedStrategy
MultisegmentStrategy
Strategies for Selecting Target Markets
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7 Undifferentiated Targeting Strategy
A marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.
UndifferentiatedTargetingStrategy
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7
UndifferentiatedStrategy
Undifferentiated Targeting Strategy
Advantage:
Potential savings on production and marketing costs
Disadvantages:
Unimaginative product offerings
Company more susceptible to competition
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
ConcentratedTargeting Strategy
LO7 Concentrated Targeting StrategyA strategy used to select one segment of a market for targeting marketing efforts.
NicheOne segment of a market.
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7 Concentrated Targeting Strategy
ConcentratedStrategy
Advantages: Concentration of resources Meets narrowly defined
segment Small firms can compete Strong positioning
Disadvantages: Segments too small, or
changing Large competitors may
market to niche segment
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7 Multisegment Targeting Strategy
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.
MultisegmentTargetingStrategy
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7 Multisegment Targeting Strategy
MultisegmentStrategy
Advantages: Greater financial success Economies of scale
Disadvantages: High costs Cannibalization
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO7
Product design costs
Production costs Promotion costs Inventory costs Marketing research costs Management costs Cannibalization
Costs of Multisegment Targeting
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Explain how and why firms implement positioning
strategies and how product differentiation
plays a role
PositioningLO9
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Positioning
LO9 Positioning
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general.
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
LO9Positioning of Procter & Gamble Detergents
Brand Positioning MarketShare
Tide Tough, powerful cleaning 31.1%
Cheer Tough cleaning, color protection 8.2%
Bold Detergent plus fabric softener 2.9%
Gain Sunshine scent and odor-removing formula 2.6%
Era Stain treatment and stain removal 2.2%
Dash Value brand 1.8%
Oxydol Bleach-boosted formula, whitening 1.4%
Solo Detergent and fabric softener in liquid form 1.2%
Dreft Outstanding cleaning for baby clothes, safe 1.0%
Ivory Snow Fabric & skin safety on baby clothes 0.7%
Ariel Tough cleaner, aimed at Hispanic market 0.1%
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
PerceptualMapping
LO9 Perceptual Mapping
A means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers’ minds.
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7 38
Perceptual Mapping
LO9
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Positioning BasesLO9
Attribute
Price and Quality
Use or Application
Product User
Product Class
Competitor
Emotion
Copyright ©2009, Cengage Learning. All rights reserved Chapter 7
Repositioning
LO9 Repositioning
Changing consumers’ perceptions of a brand in relation to competing brands.