market segmentation, targeting and positioning chapter 9 mr1100
TRANSCRIPT
![Page 1: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/1.jpg)
Market Segmentation, Targeting and Positioning
Chapter 9MR1100
![Page 2: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/2.jpg)
Segmentation Is:
• Placing prospective buyers into groups (segments) that:– 1) Have common needs &– 2) will respond similarly to a given set of
marketing actions.
![Page 3: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/3.jpg)
Why Segment a Market?
• Organizations have limited budgets. Because of this coupled with the need to maximize profits or maximize shareholder value, most organizations have to make choices.
• Picking one or a few key segments to target sales allows organizations to channel their scarce resources most effectively.
![Page 4: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/4.jpg)
When to Segment a Market• You should segment your market only if in doing it you can either:
– Increase sales– Increase profit or– Increase Return on Investment (ROI)
• Organizations often achieve this by:– Selling a single product to several markets – Selling baking soda to bakers and
baking soda to athletes as deodorizer.– Selling several products to several markets – usually the domain of larger
firms – car companies make different models for different types of markets/consumers.
– Mass-customization – this is a new trend that harnesses the power of logistics management and information management systems in such a way that companies can build a product to meet an individual’s taste while at the same time carefully control the costs of doing this.
![Page 5: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/5.jpg)
Steps in Segmenting and targeting markets (1)
Form Prospective buyers into SegmentsDo so only if:
you can increase profit/ROI by doing it; only if you can clearly form segments that contain people with similar needs. The difference between the segments are substantial enough to warrant the segment. It is feasible – the cost of reaching the segment is less than the potential revenue
received from that segment.
Ways to segment a consumer market: Region Family Size Lifestyle Potential Benefits Offered Usage Rate
![Page 6: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/6.jpg)
Steps in Segmenting and targeting markets (1)
• Ways to segment an organizational market:– Location– SIC code– Number of employees
![Page 7: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/7.jpg)
Steps in Segmenting and targeting markets (2)
• Form Products to be sold into groups.
– Break products into categories that match buyers needs
– Eg: Skidoo offer 7 lines of snowmobile models to meet every taste.
![Page 8: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/8.jpg)
Steps in Segmenting and targeting markets (3)
• Develop a Market Product grid and estimate the size, growth, competitive position, cost of reaching each market, as well as assessing the organizations objectives.
– Choose a segment or segments that best suit the organizations needs.
![Page 9: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/9.jpg)
Steps in Segmenting and targeting markets (4)
• Take Marketing Actions to reach the target markets
– There are two basic stratagies to sell products in a competitive environment.• Head to Head - Direct competition, comparing your product with
the competitors on similar attributes. Duracell-Energiser• Differentiation - Emphasising differences among your products
and others. Stress unique aspects of the product.
![Page 10: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/10.jpg)
Steps in Segmenting and targeting markets (4)
Perceptual maps give a 2 dimensional view of 2 product attributes relative to other competitive products. Light taste
Heavy taste
Bitter Mild
The PM Allows Marketers to define the Competition.
![Page 11: Market Segmentation, Targeting and Positioning Chapter 9 MR1100](https://reader036.vdocument.in/reader036/viewer/2022082817/56649e575503460f94b503ae/html5/thumbnails/11.jpg)
Analyzing the Market
• Using Survey questions to reveal more than the obvious.– Cross-Tabulation: Comparing the answer on one
survey question to another.• Eg:
– Q1) How old are you 10-40 41-80– Q2) Where do you live City Country– Look at the answers to each question and ask do younger
people have a propensity to live in the city?