Mastering Marketing
Focusing Marketing Strategy with Segmentation and Positioning
Focusing Marketing Strategy with Segmentation and Positioning
Mastering Marketing
1. Know about defining generic markets and product-markets.
2. Know what market segmentation is and how to segment product-markets into submarkets.
3. Know three approaches to market-oriented strategy planning.
4. Know dimensions that may be useful for segmenting markets.
5. Know a seven-step approach to market segmentation that you can do yourself.
6. Know what positioning is--and why it is useful.
When we finish this lecture you should
Mastering Marketing
Taking Advantage of Opportunities
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Singletargetmarket
approach
Multipletargetmarket
approach
Combinedtargetmarket
approach
Selectingtarget
marketingapproach
Homogeneous(narrow)product-markets
Segmentinginto possible
target markets
Search for Opportunities Can Begin by Understanding MarketsExhibit 3-2
Allcustomer
needs
Somegenericmarket
Onebroad
product-market
Narrowing down tospecific product-market
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Customer Needs
Customer Needs
Customer TypeCustomer Type
Product TypeProduct Type
Product-MarketDefinition
Product-MarketDefinition
Product TypeProduct Type Customer Needs
Customer Needs
Customer TypeCustomer Type
Naming Product Markets and Generic Markets
Geographic Area
Geographic Area
No Product Type in Generic Market DefinitionNo Product Type in Generic Market Definition
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Interactive Exercise: Product-Market Definition
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Market Segmentation Defines Possible Target MarketsExhibit 3-3
Broad product-market (or generic market) name goes here (The bicycle-riders product-market)
Submarket 1(Exercisers)
Submarket 2(Off-road
adventurers)
Submarket 3(Transportation riders)
Submarket 4(Socializers)
Submarket 5(Environmentalists)
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A. Product-market showingthree segments
Dependability dimension
Sta
tus
dim
ensi
on
How Far Should the Aggregating Go?Exhibit 3-4
B. Product-market showingsix segments
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Target Marketers Aim at Specific TargetsExhibit 3-5
In a product-market area
A segmenter
Using single target market approach – can aim at one submarket with one marketing mix
Using multiple target market approach – can aim at two or more submarkets with different marketing mixes
A combiner
Using combined target market approach – can aim at two or more submarkets with the same marketing mix
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Too Much Combining Is
Risky
Segmenters Try to Satisfy “Very Well”
Segmenters Try to Satisfy “Very Well”
Combiners Try to Satisfy “Pretty Well”
Combiners Try to Satisfy “Pretty Well” Too Much
Combining Is Risky
Too Much Combining Is
Risky
Combiners Try to Satisfy “Pretty Well”
Segmenters Try to Satisfy “Very Well”
Segmenting May Produce Bigger Sales
Segment or Combine?
Segment or Combine?Segment or Combine?
Segment or Combine?
Profit Is the Balancing
Point
KeyIssuesKey
Issues
Segmenting vs. Combining
Segmenting May Produce Bigger Sales
Segmenting May Produce Bigger Sales
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What Dimensions Are Used to Segment Markets?
OR
QualifyingDimensionsQualifying
Dimensions
• Relevant to including a customer type in a product market
• Help identify “core features”
DeterminingDimensionsDeterminingDimensions
• Affect the customer’s purchase of a product or brand
• Can be further segmented
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What Are the Relevant Segmenting Dimensions?
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Different Dimensions For
Different Submarkets
Different Dimensions For
Different Submarkets
Qualifying Dimensions Are Important Too
Qualifying Dimensions Are Important Too
Qualifying Dimensions Are Important Too
Qualifying Dimensions Are Important Too
Determining Dimensions May
Change
Determining Dimensions May
Change
Determining Dimensions May Be Very Specific
Determining Dimensions May Be Very Specific
Key IssuesKey Issues
Determining vs. Qualifying Dimensions
Determining Dimensions May Be Very Specific
Determining Dimensions May Be Very Specific
Determining Dimensions May
Change
Determining Dimensions May
Change
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Broader Issues in Selecting Segmenting Dimensions
EthicalIssuesEthicalIssues ExploitationExploitation
Creates Unnecessary
Wants
Creates Unnecessary
Wants
Does HarmDoes Harm
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What Dimensions Are Used to Segment Markets?
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What Dimensions Are Used to Segment Markets?
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What Dimensions Are Used to Segment Markets?
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Business-to-Business Segmentation
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Estimate Size of Product-Market Segments
Estimate Size of Product-Market Segments
Name Broad Product-MarketName Broad
Product-Market
List Customer NeedsList Customer Needs
Form HomogeneousSubmarkets
Form HomogeneousSubmarkets
IdentifyDetermining Dimensions
IdentifyDetermining Dimensions
Name PossibleProduct-MarketsName Possible
Product-Markets
Evaluate Product-MarketSegments
Evaluate Product-MarketSegments
Name Broad Product-MarketName Broad
Product-Market
List Customer NeedsList Customer Needs
Form HomogeneousSubmarkets
Form HomogeneousSubmarkets
IdentifyDetermining Dimensions
IdentifyDetermining Dimensions
Name PossibleProduct-MarketsName Possible
Product-Markets
Evaluate Product-MarketSegments
Evaluate Product-MarketSegments
Segmenting Product Markets
ProcessforSegmentingProduct-Markets
ProcessforSegmentingProduct-Markets
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ClusteringClusteringClusteringClustering
Customer DatabaseCustomer Database
More Sophisticated Techniques May Help in Segmenting
Customer DatabaseCustomer Database
Customer Relationship Management (CRM)
Customer Relationship Management (CRM)
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Cluster Analysis
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Positioning
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An Example of PositioningExhibit 3-12
High moisturizing
low moisturizing
Nondeodorant Deodorant
ZestLever 2000
Safeguard
DialLifebuoy
Tone
Dove
LuxCoast
Lava
2
1
4
5
7
38
6
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• Market
• Generic market
• Product market
• Market segmentation
• Segmenting
• Market segment
• Single target market approach
• Multiple target market approach
• Combined target market approach
• Combiners
• Segmenters
• Qualifying dimensions
• Determining dimensions
• Clustering techniques
• Customer relationship management (CRM)
• Positioning
Key Terms