Date post: | 16-Apr-2017 |
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Business |
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MARKETING PRINCIPLES
All of this issues need a marketing plan to overcome the threats & get their objectives &
goals
Rev. profit
Organization
Feedback
Competition
Strategic goals
Segmentation &
targeting
Positioning &
differentiation
Value proposition
promotion
place
price
product
B R A N D
C U S T O M E R
THE MOST IMPORTANT DEFINITIONS
SEGMENTATION Is Subdividing Of Market Into Homogeneous Sub Set Of Customers Where Any Subset May Be Selected As Marketing Target
TARGETING a well-defined set of customers whose needs the organization plans to satisfy
POSITIONING Is the act of designing the company's image to occupy a distinctive place in the target market's mind
THE MOST IMPORTANT DEFINITIONS How do we define it ?
7- 7
Identify
bases for
segmenting
the market
Develop
segment
profile
Develop
measures of
segment
attractivenes
s
Select the
target
market
Develop
positioning
for target
segments
Develop a
marketing
mix for each
segment
There is a lot of definitions to the
market segmentation
Market segmentation involves the subdividing of a market into distinct subgroups of customers, where any subgroup can be selected as a target market
Market Segmentation is the marketing process of identifying and breaking up the total market into groups of potential customers with similar motivations, needs or characteristics, who are likely to exhibit homogeneous purchase behaviour. Undertaking this process allows marketing efforts to be targeted at select groups.
creaminess
sweetness
creaminess
sweetness
creaminess
sweetness
C - Clustered Preference -natural segments -increases as number of competitors increases
A - Homogeneous Preference -no natural segments -all buyers have same preference
B - Diffused Preference -no pattern (…or poor research) -take center position
Why market segmentation
????
To develop marketing activities Increase marketing effectiveness Generate greater customer satisfaction Create savings To identify strategic opportunities and niches Allocation of marketing budget Adjustment of product to the market need To estimate the level of sales in the market To overcome competition effectively To develop effective marketing programmes To contribute towards achieving company goals
7- 13
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Geographical segmentation – Marketing mixes are
customized geographically
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation variables
Key Topics
Market Segmentation
Market Segmentation
Geographic Segmentation Variables
City or Metro Size Density Climate
World Region or Country Country Region City
7- 15
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Geographical segments • Demographic
segmentation – Most popular type – Demographics are
closely related to needs, wants and usage rates
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation variables
Key Topics
Market Segmentation
7- 16
Demographic Segmentation Variables
• Age • Gender • Family size • Family life cycle • Income
Occupation Education Religion Nationality
Market Segmentation
7- 17
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Geographic segments • Demographic
segmentation • Psychographic
segmentation – Lifestyle, social class,
and personality-based segmentation
• Behavioral segmentation
• Using multiple segmentation variables
Key Topics
Market Segmentation
7- 18
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Geographic segments • Demographic
segmentation • Psychographic
segmentation • Behavioral segmentation
– Based on knowledge, attitude, use or response to a product
– Typically done first
• Using multiple segmentation variables
Key Topics
Market Segmentation
7- 19
Behavioral Segmentation Variables
• Occasions: According to occasions buyer get the idea to buy or use the purchased item.
• Benefits sought: According to different benefits consumers seek from the product.
• User Status: Nonusers, ex-users, potential users, first-time users & regular users.
• User Rates: Light, medium & heavy product users.
• Loyalty Status: Loyalty to brands, stores & companies can be a base. Consumers can be somewhat loyal & completely loyal
Market Segmentation
7- 20
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Geographic segments • Demographic
segmentation • Psychographic
segmentation • Behavioral
segmentation • Using multiple
segmentation variables
Key Topics
Market Segmentation
7- 21
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Demographic segmentation – Industry, company size,
location
• Operating variables – Technology, usage status,
customer capabilities
• Purchasing approaches • Situational factors
– Urgency, specific application, size of order
• Personal characteristics – Buyer-seller similarity,
attitudes toward risk, loyalty
Key Topics
Market Segmentation
7- 22
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Geographic segmentation – Location or region
• Economic factors – Population income or level
of economic development
• Political and legal factors – Type / stability of
government, etc.
• Cultural factors – Language, religion, values,
attitudes, customs, behavioral patterns
Key Topics
Market Segmentation
7- 23
• Segmenting Consumer Markets
• Segmenting Business Markets
• Segmenting International Markets
• Requirements for Effective Segmentation
• Measurable – Size, purchasing power,
and profile of segment
• Accessible – Can be reached and served
• Substantial – Large and profitable
enough to serve
• Differentiable – Respond differently
• Actionable – Effective programs can be
developed
Key Topics
Market Segmentation
– Consists of a set of buyers who share common needs or characteristics that the company decides to serve.
– The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond
Target Market
Criteria for Targeting: 9 W’s
• Who buys our product? • Who does not buy it? • What need or function does it serve? • What are customers buying to satisfy the
need for which our product is targeted? • What price are they paying? • When is the product purchased? • Where is it purchased? • Why is it purchased?
FACTORS CONSIDERED IMPORTANT IN THE SELECTION OF TARGET MARKET STRATEGY
• 1. Company’s Resources • 2. Product Homogeneity • 3. Product Stage in the Life Cycle • 4. Market Homogeneity • 5. Competitive Marketing Strategy
• Target Marketing Strategies
Five basic strategies for target market selection:
• (1) Single Segment Targeting • (2) Selective Targeting • (3) Mass Market Targeting • (4) Product Specialization • (5) Market Specialization
• Basic Target Marketing Strategies
Strategies of Target Marketing
• Undifferentiated (mass) Marketing
• Differentiated (segmented) Marketing
• Concentrated (niche) Marketing
• Micromarketing (local or individual marketing)
• Ignoring market segments differences & make one offer to whole market
• Target several segments & designs offer for each
• Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium
• Tailoring to the needs & wants of the locals or individuals
Key Topics
Our
project
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lotion
THANK YOU! FOR YOUR ATTENTION