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PILLARS OF MARKETIN
STPD
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Key Issues
• Definition of Segmentation, Targeting & Positioning
• Conventional vs. Unconventional Wisdom
• Segmentation y demogra!"ic, !syc"ogra!"ic, e"avior, et"nic and enefit
• Targeting y standardi#ed, concentrated & differentiated
• Positioning y attriute, $uality, !rice and user
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Market Segmentation
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Defn :-Represents an eort to identify andcategorize groups of customers andcountries according to commoncharacteristics.
Markets are eterogeneous! Segmentationdi"ides them into omogeneous Su# $nits.
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Why Segment the Market?
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1. &aci'itate the right choice of (arget Market2. &aci'itates )ecti"e (apping of the *hosen
market
3. Makes the Marketing )ort more )+cient
and )conomic
%. e'ps ,dentify 'ess satised Segments and*oncentrate on them
. &aci'itate deep dierentiation of oers #asedon the "a'ue sought
/. e'ps the rm create and occupy ne0segments on the #asis of "a'ue.
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(argeting
(he process of e"a'uating segments andfocusing marketing eorts on a countryregion or group of peop'e that hassignicant potentia' to respond.
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Positioning
%ocating a rand in consumers minds
over and against com!etitors in terms
of attriutes and enefits t"at t"erand does and does not offer. 'ttriute or (enefit
)uality and Price Use or User
Com!etition
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Dierentiation
4roduct dierentiation is of "ita' importance inproduct management and has great potentia' inforging successfu' marketing strategies.5
4roducts can #e dierentiated on the #asis of
a6 (angi#'e product attri#utes)g $7 8 *'ose $p 4restige 4ans Da#ur 9atika
urkure Deo (itan 0atches ;a
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?'o#a' Market Segmentation
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Dened as the process of identifyingspecic segmentsA0hether they #ecountry groups or indi"idua' consumergroupsAof potentia' customers 0ith
homogeneous attri#utes 0ho are 'ike'y toeBhi#it simi'ar responses to a company>smarketing miB.
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?'o#a' Market Segmentation
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1. ?eographic2. Demographic
3. Socio-cu'tura'
%. 4sychographics. ;uying ;eha"ior
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Demographic Segmentation
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,ncome
4opu'ations
=ge distri#ution?ender
)ducation
Eccupation
What are the trends?
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Demographic facts andtrends
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= 0idening age gap eBists #et0een the o'derpopu'ations in the Fest and the 'arge 0orking-age popu'ations in de"e'oping countries
,n the )uropean $nion the num#er of
consumers aged 1/ and under is rapid'yapproaching the num#er of consumers aged/-p'us
=sia is home to mi''ion consumers aged 1/and under
a'f of Gapan>s popu'ation 0i'' #e age oro'der #y 22
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Demographic facts andtrends
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=merica>s three main ethnic groupsA=fricanH;'ack =mericans ispanic =mericansand =sian =mericansArepresent a com#inedannua' #uying po0er of I1 tri''ion
(he $nited States is home to 2@.% mi''ion
foreign-#orn residents 0ith a com#ined incomeof I233 #i''ion
;y 23 2 percent of the $.S. popu'ationAmi''ion =mericansA0i'' #e / or o'der "ersus13 percent J3/ mi''ion6 today
,ndia has the youngest demographic pro'eamong the 0or'd>s 'arge nations: More thanha'f its popu'ation is under the age of 2
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4er *apita ,ncome
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1 Most 4opu'ous *ountries
1%
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Segmenting #y 4opu'ation
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“Urban India is getting saturated. In thecities, everyone who can aford a television
has one. I you want to maintain highgrowth, you have to !enetrate into rural
India."
# $. %amachandran, &hie '(ecutive )hili!s'lectronics India
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=ge Segmentation
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?'o#a' (eens 8 young peop'e #et0een theages of 12 and 1C= group of teenagers random'y chosen from
dierent parts of the 0or'd 0i'' share many of
the same tastes)g. *oee *afK>s on 7ifesty'e Segments
?'o#a' )'ite 8 aLuent consumers 0ho are0e'' tra"e'ed and ha"e the money to spendon prestigious products 0ith an image ofeBc'usi"ity.
)g. =udi *ar $sers
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4sychographic Segmentation
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?rouping peop'e according to attitudes"a'ue system 'ifesty'es and se'f 8concept.
eBamp'es (op ?uns J26: =m#ition po0er contro')'itists J2%6: E'd money car is
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;eha"ior Segmentation
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o0 much they use ito0 often they use it
$ser status
7a0 of disproportiona'ityH4areto>s 7a0 8@ of a company>s re"enues areaccounted for #y 2 of the customers
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;enet Segmentation
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;enet segmentation focuses on the "a'ueeNuation9a'ue O ;enets H 4rice
;ased on understanding the pro#'em aproduct so'"es the #enet it oers or theissue it addresses
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=ssessing Market 4otentia'
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(hree #asic criteria*urrent size of the segment and anticipated
gro0th potentia'*ompetition
*ompati#i'ity 0ith the company>s o"era''o#
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C Puestions
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Fho #uys our productQFho does not #uy itQFhat need or function does it ser"eQ
,s there a market need that is not #eing met #ycurrent productH#rand oeringsQFhat pro#'em does our product so'"eQFhat are customers #uying to satisfy the need
for 0hich our product is targetedQFhat price are they payingQFhen is the product purchasedQFhere is it purchasedQ
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(arget Market StrategyEptions
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Standardized g'o#a' marketingMass marketing on a g'o#a' sca'e$ndierentiated target marketing
*oncentrated g'o#a' marketingiche marketingSing'e segment of g'o#a' market
Dierentiated g'o#a' marketing
Mu'ti-segment targeting (0o or more distinct markets
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4ositioning
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7ocating a #rand in consumers> minds o"erand against competitors in terms ofattri#utes and #enets that the #rand doesand does not oer=ttri#ute or ;enetPua'ity and 4rice$se or $ser*ompetition
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4ositioning Strategies
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?'o#a' consumer cu'ture positioning,denties the #rand as a sym#o' of a
particu'ar g'o#a' cu'ture or segment
&oreign consumer cu'ture positioning=ssociates the #rand>s users use occasions
or product origins 0ith a foreign country orcu'ture
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4ositioning Strategies
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*urrent Segment Size and?ro0th
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,s the market segment current'y 'argeenough to present a company 0ith theopportunity to make a protQ
,f the ans0er is no> does it ha"e
signicant gro0th potentia' to make itattracti"e in terms of a company>s 'ong-term strategyQ
Return
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4otentia' *ompetition
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,s there strong competition in the marketsegment current'yQ
,s the competition "u'nera#'e in terms ofprice or Nua'ityQ
Return
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Se'f test Puestion 1
2@
Return
' toacco com!any*s decision to create a cigarette
rand t"at +ould a!!eal to +oring +omen
et+een t"e ages of -/01 +ould re!resent
+"ic" ty!e of segmentation2
a) demogra!"ic segmentation
3 enefit segmentationc3 !syc"ogra!"ic segmentation
d3 e"avioral segmentation
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Se'f test Puestion 2
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Return
T"e term most closely associated +it"
psychographics is2
a3 gender
3 lifestyle
c3 statistics
d3 "eavy user e3 standard of living
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Se'f test Puestion 3
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Return
W"ic" of t"e follo+ing is 45T a target maret
strategy2
a3 standardi#ed gloal mareting
3 concentrated gloal mareting
c3 differentiated gloal mareting
d3 !syc"ogra!"ic gloal mareting
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Se'f test Puestion %
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Return
66666 is t"e act of differentiating
a !roduct in t"e mind of t"e customer
in relation to t"e !roduct offerings of com!etitors
is called2
a3 Product formulation
3 Positioning
c3 Com!arative analysis
d3 Diffusion
e3 Private/lael randing