Kotler07 basic
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The document discusses the three steps of target marketing: market segmentation, target marketing, and market positioning. It provides details on how companies segment markets based on geographic, demographic, psychographic, and behavioral factors. It also explains how companies evaluate segment attractiveness, select target segments, and position their products within the target segments. The goal is to implant the brand's unique benefits in customers' minds to gain a competitive advantage.
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Kotler07 basic
- 1. Segmentation, Targeting, and Positioning Building the Right Relationships with the Right Customers Chapter 7
- 2. Learning Goals 1. Learn the three steps of target marketing, market segmentation, target marketing, and market positioning 2. Understand the major bases for segmenting consumer and business marketing strategy 3. Know how companies identify attractive market segments and choose target marketing strategy 4. Realize how companies position their products for maximum competitive advantage in the marketplace 7-1
- 3. Case Study Procter & Gamble • Sells multiple brands • Has also identified within the same product different niches within category for a variety of certain segments products • Product modifications are useful: Tide offers • Brands feature a seven different product different mix of benefits formulations to serve and appeal to different different niches’ needs segments 7-2
- 4. Steps in market segmentation, targeting and positioning Market Segmentation Identify bases for segmenting the market Develop segment profiles Target Marketing Develop measure of segment attractiveness Select target segments Market Positioning Develop positioning for target segments Develop a marketing mix for each segment 7-3 Goal 1: Learn the three steps of target marketing
- 5. Definition Market Segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. 7-4 Goal 2: Understand the major bases for segmentation
- 6. Segmenting Consumer Markets Geographical segmentation Demographic segmentation Most popular segmentation Psychographic segmentation Lifestyle, social class, and personality-based segmentation Behavioral segmentation 7-5 Goal 2: Understand the major bases for segmentation
- 7. Geographic Segmentation Variables • World region • Neighborhood or country • City or • U.S. region metro size • State • Density • City • Climate 7-6 Goal 2: Understand the major bases for segmentation
- 8. Demographic Segmentation Variables • Age • Occupation • Gender • Education • Family size • Religion • Family life cycle • Race • Income • Generation • Nationality 7-7 Goal 2: Understand the major bases for segmentation
- 9. Behavioral Segmentation Variables • Occasions • User Rates • Benefits • Loyalty Status • User Status • Readiness Stage • Attitude Toward the Product 7-8 Goal 2: Understand the major bases for segmentation
- 10. Segmenting Business Markets 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 7-9 Goal 2: Understand the major bases for segmentation
- 11. Segmenting International Markets Geographic segmentation Location or region Economic factors Population income or level of economic development Political and legal factors Type / stability of government, monetary regulations, amount of bureaucracy, etc. Cultural factors Language, religion, values, attitudes, customs, beha vioral patterns 7 - 10 Goal 2: Understand the major bases for segmentation
- 12. 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 7 - 11 Goal 2: Understand the major bases for segmentation
- 13. Target Marketing Target Market Consists of a set of buyers who share common needs or characteristics that the company decides to serve 7 - 12 Goal 3: Know how companies identify and target attractive segments
- 14. Target Marketing Evaluating Market Segments Segment size and growth Segment structural attractiveness • Level of competition • Substitute products • Power of buyers • Powerful suppliers Company objectives and resources 7 - 13 Goal 3: Know how companies identify and target attractive segments
- 15. Target Marketing Selecting Target Market Segments Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micromarketing (local or individual) 7 - 14 Goal 3: Know how companies identify and target attractive segments
- 16. Choosing a Target Marketing Strategy Considerations include: Company resources The degree of product variability Product’s life-cycle stage Market variability Competitors’ marketing strategies 7 - 15 Goal 3: Know how companies identify and target attractive segments
- 17. Target Marketing Socially Responsible Targeting Some segments, especially children, are at special risk Many potential abuses on the Internet, including fraud Internet shoppers Controversy occurs when the methods used are questionable 7 - 16 Goal 3: Know how companies identify and target attractive segments
- 18. Positioning Positioning: The place the product occupies in consumers’ minds relative to competing products. Typically defined by consumers on the basis of important attributes. Involves implanting the brand’s unique benefits and differentiation in the customer’s mind. Positioning maps that plot perceptions of brands are commonly used. 7 - 17 Goal 4: Realize how companies position their products
- 19. Choosing a Positioning Strategy Topics Differentiation can be based on Identifying possible Products Services competitive advantages Channels Choosing the right People Image competitive advantage Choosing a positioning strategy 7 - 18 Goal 4: Realize how companies position their products
- 20. Market Segmentation Topics • How many differences to promote? Unique selling Identifying possible proposition competitive advantages Several benefits Choosing the right • Which differences to competitive advantage promote? Criteria include: Choosing a positioning Important strategy Distinctive Superior Communicable Preemptive Affordable Profitable 7 - 19 Goal 4: Realize how companies position their products
- 21. Market Segmentation Topics • Value propositions represent the full Identifying possible positioning of the brand competitive advantages • Possible value propositions: Choosing the right More for More competitive advantage More for the Same Choosing a positioning More for Less strategy The Same for Less Less for Much Less 7 - 20 Goal 4: Realize how companies position their products
- 22. Developing a Positioning Statement Positioning statements summarize the company or brand positioning EXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference) 7 - 21 Goal 4: Realize how companies position their products
- 23. Communicating the Positioning Companies must be certain to DELIVER their value propositions. Positions must be monitored and adapted over time. 7 - 22 Goal 4: Realize how companies position their products