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chapter:
Consumer- Drive Marketing Strategy:
CREATING VALUE FOR TARGET CUSTOMERS Katarína Chomová, 2012
SEGMENTATION
Dividing a market into smaller segments with district needs, characteristics or behavior that might require separate marketing strategies or mixes.
TARGETING
The process of evaluating of each market segment´s attractiveness and selecting one or more segments to enter.
POSITIONING
Arraging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
SEGMENTATION = through market segmentation, companies divide large,
heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. A marketer has to try differnt segmentation variables. Here we look at the major :
•GEOGRAPHIC •DEMOGRAPHIC •PSYCHOGRAPHIC and BEHAVIORAL variables
GEOGRAPHIC SEGMENTATION
= Dividing a market into different geographical units, such as nations, states, regions, countries and cities.
Walmart has developed special formats tailored to specific types of geographic locations, from Hispanicfocused Supermercado de Walmart stores.
DEMOGRAPHIC SEGMENTATIO N
= Dividing a market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality.
• Age and Life-Cycle Stage = People change the goods and services they buy over their lifetimes.
• Gender = has been used in clothing, cosmetics, toiletries and magazines.
• Income = has been used in automobiles, clothing, cosmetics, financial services and travel.
PSYCHOGRAPHIC SEGMENTATION
= Dividing a market into defferent segments based on social class, lifestyle or personality characteristics.
Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead. Favorite Things: Chevrolet , Playboy , Coke Classic
Motivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo. They value consensus, predictability, and stability over risk, intimacy, and self-discovery. Favorite Things: Honda , low-calorie domestic beer ...
Survivors live narrowly focused lives. Because they have few resources with which to cope, they often believe that the world is changing too quickly. They are comfortable with the familiar and are primarily concerned with safety and security. Because they must focus on meeting needs rather than fulfilling desires, Survivors do not show a strong primary motivation. Favorite Things: an American car, a home-brewed cup of coffee
BEHAVIORAL SEGMENTATION
= Dividing a market into segment based on consumer knowledge, attitudes, uses or responses to a product.
Loyalty Status Segmentation
Hard-core Split loyals Shifting loyals Switchers
• Occasions = dividing a market into segments according to occasions when buyers get the idea to buy, actually make their purchase or use the purchased item..
• Benefits = dividing a market into segments according to the differnt benefits that consumers seek from the product.
REQUIREMENTS FOR EFFECTIVE SEGMENTATION •
measurable = the size, purchasing power and profiles of the segments can be measured
•
accessible = the market segments can be effectively reached and served
•
substantial= the market segments are large or profitable enough to serve
•
differentiable= the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. actionable = effective programs can be designed for attracting and serving the segments.
•
SEGMENTATION
Dividing a market into smaller segments with district needs, characteristics or behavior that might require separate marketing strategies or mixes.
TARGETING
The process of evaluating of each market segment´s attractiveness and selecting one or more segments to enter.
POSITIONING
Arraging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
TARGETING = evaluating the various segments and deciding how many and which segments it can serve best TARGET MARKET= A set of buyers sharing common needs or characteristics that the company decides to serve. = Market targeting can be carried out at several different levels.
Undifferentiated (Mass) Marketing Differentiated (Segmented) Marketing Concentrated (Niche) Marketing
Targeting broadly
Targeting narrowly
Micromarketing (Local or Individual Marketing )
Undifferentiated (Mass) Marketing = A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
"Any customer can have a car painted any color that he wants so long as it is black."
Henry FORD – Model T
Differentiated (Segmented) Marketing = A market-coverage strategy in which a firm decides to target several market segments and designs separate offers for each.
-- Block 3M Post-it is now produced in 18 colors in 27 sizes,
56 shapes and 20 in fragrances. For the consumer is thus available for more
than half a million combinations.
Targets several segments and designs separate offers for each. – Coca-Cola (Coke, Sprite, Diet Coke, etc.) – Procter & Gamble (Tide, Cheer, Gain, Dreft, etc.) – Toyota (Camry, Corolla, Prius, Scion, etc.)
= MARTINI- ROSSO - Elegant group of young people relaxing in a nice environment
=
MARTINI- BIANCO 20-30 years old young people who are making a sport
= MARTINI- EXTRA DRY for „gurmans“
Concentrated (Niche) Marketing = A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
Cafédirect’s Wolfgang Weinmann said, “Access for smallholder farmers to added-value markets like
climate-smart and ethical products clearly is the way forward. Plus, of course delivering high quality and absolute traceability.
Micromarketing (Local or Individual Marketing) = Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments. It includes local marketing and individual marketing.
Local Marketing = Tailoring brands and promotions to the needs and wants of local customer segments- cities, neighborhoods and even specific stores.
Individual Marketing = Tailoring products and marketing programs to the needs and preferences of individual customers- also called one-to-one marketing, customized marketing and markets-of-one marketing.
E N O O T E G ON N I T E K R A M
SEGMENTATION
Dividing a market into smaller segments with district needs, characteristics or behavior that might require separate marketing strategies or mixes.
TARGETING
The process of evaluating of each market segment´s attractiveness and selecting one or more segments to enter.
POSITIONING
Arraging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
POSITIONING PRODUCT POSITION The way the product is defined by consumers on important attributes- the place the product occupies in consumers´minds relative to competing products. =
Positioning Maps: Luxury SUVs Price vs. Orientation Dimensions
ROLEX
= the best watch in the world
COCA-COLA = the most famous soft drink in the world
PORSCHE = one of the best sport´s car
Positioning Example
eBay’s positioning: No matter what “it” is, you can find “it” on eBay!
POSITIONING STRATEGY
offered benefits the present
stop hunger
opportunity to use „take a rest“ chocolate after dinner
the
The personality David Beckham Adidas, Pepsi, Vodafone, Police, Motorola, ParfĂŠmy, Armani............
Country of origin VW- quality Škoda- low price
The competition 7-Up - „Uncola“
Sources of Differentiation – – – – – – –
Product Design Quality Additional Services Image People (Staff) Price Other
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