applied mareking. what is a market segment? a market segment consists of a group of customers who...
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Applied Mareking
What is a market segment?
A market segment consists of a group of customers who share a similar set of needs and wants.
Segmenting consumer markets
GeographicGeographic
DemographicDemographic
PsychographicPsychographic
BehaviouralBehavioural
1.
2.
3.
4.
Geographic segmentation
Region of the world Country Region of a country City
Demographic segmentation
Age and life cycleAge and life cycle
Life StageLife Stage
GenderGender
IncomeIncome
GenerationGeneration
Social classSocial class
Psychographic segmentation
Psychographic segmentation divides buyers into different groups on the basis of traits, lifestyles or values.
AIO Factors that describe individual lifestyles
Activities
Interests
Opinions
Behavioral segmentation: decision roles
Initiator
Influencer
Decider
Buyer
User
Behavioural segmentation: behavioural variables
Occasions Benefits User status Usage rate Buyer-readiness Loyalty status Attitude
Behavioral segmentation breakdown
Figure 10.4 Behavioural segmentation breakdown
Figure 10.3 Brand funnel
Relationship Ladder
The conversion model
Convertible Shallow Average Entrenched
Stronglyunavailable
Ambivalent AvailableWeakly
unavailable
Users Nonusers
Purchase decision Process
AIDA Model
AttentionAttention
InterestInterest
DesireDesire
ActionAction
Three Product Levels
What is positioning?
Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind
of the target market.
Examples of Value propositions
Table 10.8 Examples of value propositionsSource : M. R. V. Goodman, Durham University
Defining associations
Points-of-difference (PODs)
Attributes or benefits consumers strongly
associate with a brand, positively
evaluate and believe they could not find to the same extent with a competitive brand.
Points-of-parity (POPs)
Associations that are not necessarily
unique to the brand but may be shared with other brands.
Necessary but not sufficient
Negatively correlated attributes and benefits
Table 10.10 Examples of negatively correlated attributes and benefits
Understanding competitive structure of a market
How do customers view the brand? Which competitive brands do customers
perceive to be their closest competitors? What market offering and company
attributes are most responsible for these perceived differences?
What is perceptual mapping?
Perceptual(or positioning) mappingis a marketing tool that enables marketers to plot the position of theiroffering against thoseof the competition?
Figure 10.7 Example positioning map of the UK chocolate block sector marketSource : M. R. V. Goodman, Durham University
Product differentiation
Product form Features Performance Conformance Durability Reliability Reparability
Style Design Ordering ease Delivery Installation Customer training Customer
consulting Maintenance
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Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Lessons from product life cycles
Products (market offerings) have a limited life.
Sales pass through distinct stages, each posing different challenges, opportunities and problemsto the seller.
Profits rise and fall at different stages of the product life cycle.
Products require different marketing, financial, manufacturing, purchasing and human resource strategies at each stage.
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Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
Long-range product life cycle
Introduction Growth MaturityDecline
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Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
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Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
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Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009
PLC Style, Fashion, Fad
Where do these fall on the PLC
What about these?
Ansoff’s Matrix
Current Products New Products
Current MarketsMarket penetration strategy
Product development strategy
New MarketsMarket development strategy
Diversification strategy