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-3BABY BOOMERS: A LUCRATIVE MARKET
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-4EFFECTIVE TARGETING REQUIRES…
Identify and profile distinct groups of buyers who differ in their needs and preferences
Select one or more market segments to enter Establish and communicate the distinctive
benefits of the market offering
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-5FORD’S MODEL T FOLLOWED A MASS MARKET APPROACH
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-6FOUR LEVELS OF MICROMARKETING
Segments
Local areas Individuals
Niches
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-7WHAT IS A MARKET SEGMENT?
A market segment consists of a group of customers who share a similar set of needs
ad wants.
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-8PREFERENCE SEGMENTS
Homogeneous preferences exist when consumers want the same things
Diffused preferences exist when consumers want very different things
Clustered preferences reveal natural segments from groups with shared preferences
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-9NICHE MARKETERS
Enterprise Rent-A-Cartargets the insurance-replacement market
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-10
BASKIN ROBBINS FOCUSES ON LOCAL MARKETING
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-11WHAT IS CUSTOMERIZATION?
Customerization combines operationally driven mass
customization with customized marketing in a way that empowers
consumers to design the product and service offering of their choice.
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-12
SEGMENTING CONSUMER MARKETS
GeographicGeographic
DemographicDemographic
PsychographicPsychographic
BehavioralBehavioral
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DEMOGRAPHIC SEGMENTATION
Age and Life CycleAge and Life Cycle
Life StageLife Stage
GenderGender
IncomeIncome
GenerationGeneration
Social ClassSocial Class
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TOYOTA SCION TARGETS GEN Y CONSUMERS
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DOVE TARGETS WOMEN
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BEHAVIORAL SEGMENTATION
Decision Roles Initiator Influencer Decider Buyer User
Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude
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THE BRAND FUNNEL ILLUSTRATES VARIATIONS IN THE BUYER-READINESS STAGE
Aware Ever tried Recent trial Occasional user Regular user Most often used
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LOYALTY STATUS
Switchers
Shifting loyals
Split loyals
Hard-core
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FIGURE 8.3 BEHAVIORAL SEGMENTATION BREAKDOWN
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THE CONVERSION MODEL
Convertible Shallow Average Entrenched
Strongly
unavailableAmbivalent Available
Weakly
unavailable
Users Nonusers
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SEGMENTING FOR BUSINESS MARKETS
DemographicDemographic
Operating VariableOperating Variable
Purchasing ApproachesPurchasing Approaches
Situational FactorsSituational Factors
PersonalCharacteristics
PersonalCharacteristics
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STEPS IN SEGMENTATION PROCESS
Needs-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Marketing-Mix
Strategy
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EFFECTIVE SEGMENTATION CRITERIA
MeasurableMeasurable
SubstantialSubstantial
AccessibleAccessible
DifferentiableDifferentiable
ActionableActionable
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FIGURE 8.4 PATTERNS OF TARGET MARKET SELECTION
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FIGURE 8.4 PATTERNS OF TARGET MARKET SELECTION
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FIGURE 8.4 PATTERNS OF TARGET MARKET SELECTION
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CREST WHITESTRIPS FOLLOWS A MULTISEGMENT STRATEGY
REFERENCES
Chapter – 4 Creating Customer Value, Satisfaction, and Loyalty Kotler, Philip, Keller, Kevin L., Koshy, Abraham
and Jha, Mithileshwar (2013-14) Marketing Management: A South Asian Perspective (14thEdition) Pearson Education Inc
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FIGURE 1.1 FIVE FORCES DETERMINING SEGMENT STRUCTURAL ATTRACTIVENESS
5-31
COMPETITOR ANALYSIS
What is a Competitor Analysis?A competitor analysis is a detailed analysis of a firm’s
competition. It helps a firm understand the positions of its major
competitors and the opportunities that are available.A competitive analysis grid is a tool for organizing the
information a firm collects about its competitors.
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SOURCES OF COMPETITIVE INTELLIGENCE1 OF 3
Collecting Competitive IntelligenceTo complete a competitive analysis grid, a firm must
first understand the strategies and behaviors of its competitors.
The information that is gathered by a firm to learn about its competitors is referred to as competitive intelligence.
A new venture should take care that it collects competitive intelligence in a professional and ethical manner.
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SOURCES OF COMPETITIVE INTELLIGENCE2 OF 3
Ethical ways to obtain information about competitors
• Attend conferences and trade shows.• Purchase competitor’s products.• Study competitors’ Web sites.• Set up Google and Yahoo! e-mail alerts.• Read industry-related books, magazines, and Web sites.• Talk to customers about what motivated them to buy your product as opposed to your competitor’s product.
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SOURCES OF COMPETITIVE INTELLIGENCE3 OF 3
• Many companies attend trade shows to not only display their products, but to see what their competitors are up to.• This is a photo of the the 2008 Consumer Electronics Trade Show in Las Vegas.
5-36
COMPLETING A COMPETITIVE ANALYSIS GRID
Competitive Analysis GridA tool for organizing the information a firm collects
about its competitorsA competitive analysis grid can help a firm see how it
stakes up against its competitors, provide ideas for markets to pursue, and identify its primary sources of competitive advantage.
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FIGURE 11.6 SIX TYPES OF DEFENSE STRATEGIES
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FIGURE 11.7 OPTIMAL MARKET SHARE
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OTHER COMPETITIVE STRATEGIES
Market
Challengers
Market
NichersMarket
Followers
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MARKET CHALLENGER STRATEGIES
Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy
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MARKET FOLLOWER STRATEGIES
Counterfeiter
Cloner
Imitator
Adapter
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NICHE SPECIALIST ROLES
End-User Specialist Vertical-Level Specialist Customer-Size Specialist Specific-Customer Specialist Geographic Specialist
Product-Line Specialist Job-Shop Specialist Quality-Price Specialist Service-Specialist Channel Specialist
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BALANCING ORIENTATIONS
Competitor-
Centered
Customer-
Centered