Course_MM_Curs limba engleza MK7

7/28/2019 Course_MM_Curs limba engleza MK7

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Understand how target marketing depends upon the idea of

heterogeneous demand among different market segments.

Note the advantages and disadvantages to segmentation and

target markets.

Understand the process of target market segmentation.

Appreciate how segmenting business markets differs from

segmenting consumer markets.

Understand the issues that arise when segmenting globalmarkets.


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A deep understanding of a group of potential customers

and a marketing plan specifically tailored for that group

helps to ensure the success of a product.

Example:Energy drinks, although popular in Europe for

over 20 years, were virtually unknown in the US until 1997,

when Red Bull first appeared and created the energy drinks

market.


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Making the product available only at selected in places

where young adults like to party.

They also make use of consumer educators, who drive

around in a silver, Red Bull off-road vehicle, passing out free

samples who anyone who looks like they need a boost ofenergy.

They sponsor extreme sporting events: snowboarding,

skateboarding, mountain biking.


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Amarketis any individual, group of individuals or

organizations, willing, able and capable of purchasing a

firms product.

Example:you and your mother may both want a new car,

but your needs and wants may be totally different.


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Generally, different groups of customers have differing

needs from specific products, orheterogeneous

demand.

Forexample: teens may want stylish blue jeans; workers want

durable jeans, while older gray consumers want comfortable

jeans.


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Market segmentation consists of groups of consumers

who are alike based on some characteristics. Each of

the market segments that a company selects to reach

with its marketing efforts is a target market.

The process of matching a specialized marketing mix

with the needs of a specific market segment is critical

to the marketing success of a product, and is calledtarget marketing.


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Mass Market Niche Micromarkets

The

Individual


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For Mass Markets, the marketing mix is standardized toreach all customers in the same way. The smaller thesize of the segments targeted, the more customized orindividualized the marketing efforts toward the market

can be. Moving toward the middle of the continuum, firms may

define a smaller segment, the niche, through nichemarketing.

Niche marketing is the process of targeting a relativelysmall market segment with a specific, specializedmarketing mix.


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Old Navy is a specialty store targeted at teenagers.


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Foot Joy makes shoes for golfers.


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Estee makes sugar free foodproducts for diabetics.

The smaller segments of the market are known asmicro-markets (small market segments, such as zip

code areas or even neighborhoods), and marketingefforts aimed at this segment are calledmicromarketing.


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Micromarketing is the process of targeting this small,narrowly defined market segments.

For example: a large, upscale retail store may identify therich neighborhoods within a city, and send them by mail fliers,

advertisements, inviting them to purchase from the respective

store. Other examples of customized services are: wedding

planners, hairstylists, doctors, and even Burger King, which

invites customers to

have it your way.


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Advantages:

1. Identification of the market allows a company to knowwhom to analyze to better understand consumer potential.

2. A detailed analysis of the market allows a company to

develop and implement a marketing mix tailored to the

specific needs of the market. Example: in the USA, after a careful analysis, Honda was

able to reduce the price of the cars by reducing the number of

available options, making the total product better suited to the

needs of the cars

reliable target market.


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3. Identification of the market allows a company toassess potential demand for its products.

Example: the total market for a Marketing textbook can

be determined by looking at the number of college

students enrolled in business programs.


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4. Knowing the market allows firms to identifycompeting products in their specific market, and

develop responsive competitive positions.

Example: Burger King and McDonalds recognize that

they are direct competitors in the burger market, and

each responds to changes in the others marketing

efforts.


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6. Defining and analyzing a target market allows a firmto position its products to the market based on assessed

needs and preferences.

7. Defining a target market allows a firm to identify

opportunities.


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1. Targeting multiple markets generally increase marketingcosts.

2. Personalization and individualization of markets can lead

to proliferation of products that can be costly to manage.

3. Too small niches may be viewed cynically by the targetedindividual, and negatively affect consumer response to

marketing efforts.

4. Narrowly segmenting a market to target may actually

prevent a product from developing brand loyalty.

5. Target marketers have been widely criticized for unethical

or stereotypical activities.


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Monitor, Evaluate and Control

Develop and Implement Appropriate Marketing Mix

Select Positioning Strategy

Assess Potential Profitability of Each Segment and Select Segments for Targetin

Profile Each Selected Segment

Determine Bases for Segmentation

Determine Need for Segmentation

Identify the Total Market


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To determine if the total market needs to be dividedinto segments for the purpose of targeting with special

marketing programs.

Example: the market for sugar is huge. Most kitchens stock

sugar, but is there a need to segment markets when selling

sugar? Probably not, because of the products homogeneity of

demand and little perceived difference in brands.


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Criter ia for Successful Segmentation

Heterogeneous - there are always differences in

consumer preference, or heterogeneity of demand (e.g.:

brown sugar, white sugar, double-refined sugar,

artificial sweetener).

Measurabledifference preferences for a product must

be identifiable and capable of being related tomeasurable variables, such as age, gender, lifestyle,

product usage, etc.


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Actionablecompanies must be able to respond todifference preferences with an appropriate marketing

mix.

Accessiblethe proposed market segment must be

accessible and reachable with targeted programs.


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Segmentation means dividing markets into homo-geneous groups based on some related characteristics.

a) Demographic segmentationage, income, occupation,

level of education, race, gender, family life cycle,

family size, religion. Example: Family life cycle - singlesbuy canned vegetables in individual serving sizes, while

families with babies buy fresh vegetables.


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b) Geographic segmentationregions may be used tosegment markets for specialized marketing efforts.

Types of products vary and brands of products

purchased vary according to regions of the world,

country, state, city or neighborhood. Example: snow

sleds are common purchases in the northern part of the

US, while outdoor furniture is popular in the south.


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e) Situation segmentationthere are different situationswhich affect the buying decision: task definition (is it a

gift), temporal perspective (how much time do you

intend to spend shopping?), etc.

f) Behavior or usage segmentationloyalty toward a

product, the way the product is used, and usage patterns

can serve as a basis for segmenting markets.


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Forecast Demand

Once segments have been identified and distinguished, a

firm must determine the profitability of customizing

marketing efforts aimed at these segments. This involves

first forecasting demand for the product, within eachsegmented target market.

Example: at the beginning of 2008, McDonalds owned

43.1% market share and has a restaurant located within 4

minutes of most consumers. Competitors actions and otherenvironmental factors that may affect future sales must also

be carefully anticipated when forecasting potential demand.


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Positioning is the image that customers have about aproduct, especially in relation to the products

competitors. Example:Mountain Dew, a PepsiCo product, whose sales rose to 13% in

1997, placing the brand on the 4thposition in the carbonated drink market,ahead of Coca Colas Sprite, now ranked 5th. The success of Mountain

Dew is attributed to a strong image that links teenagers, the major market

segment, with outdoors, high-energy and thirst quenching properties of the

drink.Mountain Dew has retained its strong position over the last 25 years.


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Product Attr ibutes

the characteristics or attributes ofa product may serve as the basis for positioning the

product. Some Colgate-Palmolive toothpastes are

positioned by their attributes: Colgate Tartar Plus

Whitening has both an antitartar and whitening formula forclean, white teeth, while Colgate Total toothpaste helps

prevent cavities, gingivitis, plaque, and provides long-lasting

fresh breath protection.


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Product User

the typical user of a product can also beused to position a product.

Example: Marlboro cigarettes appealed for a long time tothe rugged individual with their Marlboro man. The latest

Samsung mobile phone is positioned to appeal to thesuccessful, individualistic business leader, so that they could

compete with the IPhone,

already famous by now.


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Product Usage

products can be positioned accordingto the ways in which they are typically used.

Product Classsome products are positioned against

another type of product class. The advertisement hints

that the nutritional, low-calorie energy barPria is an

alternative to a chocolate candy bar.


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Competition

comparing your product to its competition,either directly or indirectly, is another form of product

positioning. Burger King and McDonalds often compare

their products to each other. It also happened with kitchen

detergents, Coke and Pepsi, nowadays these techniquesbeing partly forbidden by law.

Symbolsometimes companies use a symbol or icon to

position their product in the minds of the consumers. Overtime, the symbol can become synonymous with the

company or product.


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Target marketing is extremely important because it

allows firms to identify and analyze their customers,

develop tailored market mixes to meet customer needs,

identify market demand, identify competition, increase

operating efficiencies, improve product positioning and

identify opportunities.


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Identifying the total market; Determining the need for segmentation based on criteria for

segmentation, strategic factors, and external factors; Determining the bases for segmentation using demographic,

geographic, psychographic, benefits sought. Situation and behaviordescriptors.

Profiling each selected segment; Assessing potential profitability of each segment and selecting

segments for targeting; Selecting the positioning strategy on the basis of price/quality,

product attributes, product user, product usage, product class,

competition, or symbols. Developing and implementing an appropriate marketing mix; Monitoring, evaluating and controlling the selection process.


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