MARKETING MANAGEMENT

Identifying Market Segments and Targets

Steps in Market Segmentation, Targeting, and Positioning

1. Identify bases for segmenting the market 2. Develop segment profiles

Market Segmentation

Market Targeting

3. Develop measure of segment attractiveness 4. Select target segments 5. Develop positioning for target segments 6. Develop a marketing mix for each segment CHP: 8&10-2

Market positioning

Segment Marketing

Targeting a group of customers who share a similar set of needs and wants.

Basic Market Preference Patterns

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.

Examples of Market Customization

Segmenting Consumer Markets

Geographic Demographic Psychographic

Behavioral

Demographic Segmentation
Age and Life Cycle
Life Stage Gender Income Generation Social Class

Psychographic Segmentation: The VALS Segmentation System

Behavioral Segmentation
Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude

Behavioral Segmentation Breakdown

Effective Segmentation Criteria

Measurable Accessible Substantial Differential Actionable
Size, purchasing power, profiles

of segments can be measured.

Segments can be effectively

reached and served.

Segments are large or

profitable enough to serve.

Segments must respond

differently to different marketing mix elements & programs.

Effective programs can be

designed to attract and serve the segments.

Market Targeting
Evaluating Market Segments
Segment Size and Growth Analyze current sales, growth rates and expected profitability for various segments. Segment Structural Attractiveness Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers. Company Objectives and Resources Company skills & resources needed to succeed in that segment(s). Look for Competitive Advantages. CHP: 8&10-13

Market Targeting
Market Coverage Strategies
Company Marketing Mix Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3
A. Undifferentiated Marketing

Market

Segment 1 Segment 2 Segment 3

B. Differentiated Marketing

Company Marketing Mix

C. Concentrated Marketing

Segment 1 Segment 2 Segment 3

CHP: 8&10-14

Patterns of Target Market Selection

CHP: 8&10-15

Patterns of Target Market Selection

CHP: 8&10-16

Patterns of Target Market Selection

CHP: 8&10-17

MARKETING MANAGEMENT
13th edition

Crafting the Brand Positioning

Kotler

Keller

Marketing Strategy
Segmentation

Targeting

Positioning

CHP: 8&10-19

Positioning

Act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.

CHP: 8&10-20

Choosing a Positioning Strategy

Step 1. Identifying Possible Competitive Advantages Step 2. Selecting the Right Competitive Advantage
Step 3. Communicating and Delivering the Chosen Position
CHP: 8&10-21

Defining Associations
Points-of-parity Points-of-difference (PODs) (POPs) Attributes or benefits Associations that are consumers strongly not necessarily unique associate with a brand, to the brand but may positively evaluate, and be shared with other believe they could not brands find to the same extent with a competitive brand
CHP: 8&10-22

Consumer Desirability Criteria for PODs

Relevance

Distinctiveness

Believability

CHP: 8&10-23

Deliverability Criteria for PODs

Feasibility

Communicability

Sustainability

CHP: 8&10-24

Examples of Negatively Correlated Attributes and Benefits

Low-price vs. High quality Taste vs. Low calories Nutritious vs. Good tasting Efficacious vs. Mild Powerful vs. Safe Strong vs. Refined Ubiquitous vs. Exclusive Varied vs. Simple

CHP: 8&10-25

Developing and Communicating a Positioning Strategy

Positioning: How many ideas to promote?
Unique selling proposition

Four major positioning errors

1. 2. 3. 4. Underpositioning Overpositioning Confused positioning Doubtful positioning
CHP: 8&10-26

Differentiation Strategies

Product

Personnel

Channel

Image

CHP: 8&10-27

Product Differentiation
Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

CHP: 8&10-28

Identity and Image

Identity: The way a company aims to identify or position itself

Image: The way the public perceives the company or its products

CHP: 8&10-29