Вы находитесь на странице: 1из 59
China – Attractive target market WHY? 1

China –

Attractive target market

WHY?

Companies cannot connect with all customers in large, broad, or diverse markets.

But they can divide such markets into groups of consumers or segments with dis=nct needs and wants.

A company then needs to iden=fy which market

segments it can serve effec=vely. This decision

requires a keen understanding of consumer behavior and careful strategic thinking.

To develop the best marke=ng plans, managers need to understand what makes each segment unique and different.

To compete more effec=vely, many companies are now embracing target marke=ng. Effec=ve target marke=ng requires that marketers:

1. Iden=fy and profile dis=nct groups of buyers who differ in their needs and preferences. 2. Select one or more market segments to enter. 3. For each target market, establish and communicate the dis=nc=ve benefit(s) of the company’s market offering.

To compete more effec=vely, many companies are now embracing target marke=ng. Effec=ve target marke=ng requires that marketers:

1. Iden=fy and profile dis=nct groups of buyers who differ in their needs and preferences. 2. Select one or more market segments to enter. 3. For each target market, establish and communicate the dis=nc=ve benefit(s) of the company’s market offering.

A market segment consists of a group of customers who share a similar set of needs and wants.

The marketer does not create the segments.

The marketer’s task is to iden0fy the segments and decide which one(s) to target.

Segment marke=ng – bePer sa=sfy target market & reflect compe=tor’s marke=ng

One way - iden=fy preference segments

A flexible market offering consists of two parts:

A naked solu0on containing the product and service elements that all segment member’s value

Discre=onary op=ons that some segment member’s value

Market segments can be defined in many different ways:

One way to carve up a market is to iden=fy preference segments

Homogeneous preferences

Diffused preferences

Clustered preferences

9
9
9

A niche is a more narrowly defined customer group seeking a dis0nc0ve mix of benefits.

Marketers usually iden=fy niches by dividing a segment into sub-segments.

A. Niche marketers presumably understand their customers’ needs so well that the customers willingly pay a premium. B. Globaliza=on has facilitated niche marke=ng. C. The low cost of se_ng up shop on the Internet has led to many small business start-ups aimed at niches

An aPrac=ve niche:

Dis.nct set of needs Pay premium for it Do not a5ract compe.tors Economies through specializa.on Size, profit & growth poten.al

Target marke=ng is leading to marke=ng programs tailored to the needs and wants of local customer groups.

Local marke=ng reflects a growing trend called grassroots marke=ng.

Ge_ng as close to customers possible - experien.al marke.ng – connect to unique experiences

13

The ul=mate level of segmenta=on leads to “segments of one”, “customized marke5ng”, or “one-to-one marke5ng”

Today customers are taking more individual ini=a=ve in determining what and how to buy

Descrip0ve characteris0cs : geographic, demographics, and psycho-graphic. Behavioral considera0ons : such as consumer responses to benefits, use occasions, or brands

Divide market into geographical units and move from macro to micro levels

na.ons, ci.es or neighborhoods

Other useful geographic indicators include job growth and migration patterns.

Divide market into geographical units and move from macro to micro levels

na.ons, ci.es or neighborhoods

Other useful geographic indicators include job growth and migration patterns.

In demographic segmenta=on, the market is divided into groups on the basis of variables such as age, family size, family life cycle, gender, income, occupa=on, educa=on, religion, race, genera=on, na=onality, and social class.

Consumer needs, wants, usage rates, and product and brand preferences are oben associated with demographic variables.

Demographic variables are easy to measure

AGE- Consumer wants and abili=es change with age.

LIFE STAGE - Persons in the same part of the life cycle may differ in their life stage. Life stage defines a person’s major concern. These life stages present opportuni=es for marketers who can help people cope with their major concerns.

Is age an accurate means of segmentation?

Is age an accurate means of segmentation? 20
21

From MF to MFGLBT

Lines blurring in recent years.

Example: Men buying skin-care products and women buying power tools and trucks.

Understanding this can help marketers develop more effec=ve messages.

23
23

Income segmenta=on is a long-standing prac=ce in product and service categories. However, income does not always predict the best customers for a given product.

Engel’s Laws

£ As household income increases:

£ A smaller percentage of expenditures goes for food.

£ The percentage spent on housing, household opera=ons, and clothing remains constant.

£ The percentage spent on other items (such as recrea=on and educa=on) increases

Strong influence on preference by consumers in products such as cars, clothing, luxury brands, leisure ac=vi=es & choice of preferred retailer

Marketers design products for specific social classes

Tastes of social class change with years

Strong influence on preference by consumers in products such as cars, clothing, luxury brands, leisure ac=vi=es & choice of preferred retailer

Marketers design products for specific social classes

Tastes of social class change with years

COHORTS

GENIE – the Asian Gen X

While they enjoy the good life, they s=ll value family =es and hard work

want to be part of society with some freedom of expression

Psychographics is the science of using psychology and demographics to bePer understand consumers.

In psychographic segmenta=on, buyers are divided into different groups on the basis of lifestyle or personality or values

SRI Consul=ng Business Intelligence
SRI Consul=ng Business Intelligence

30

Many marketers believe behavioral variables are the best star=ng points for construc=ng market segments

Divide buyers into groups – based on knowledge, a_tude, use, response to product

DECISION ROLES - Ini.ator, Influencer, Decider , Buyer & User

Occasions: =me of day, week, month, year or any defined aspects of life

Buyers -occasions – creates the need/ buy product

Benefits

Buyers grouped – benefits they seek

   Benefits    Buyers grouped – benefits they seek 33
34

User Status:

Non-, ex-, poten=al, 1st =me, regular & will-be (life stage/event) users

Usage Rate:

light, medium & heavy users

User Status:

Non-, ex-, poten=al, 1st =me, regular & will-be (life stage/event) users

Usage Rate:

light, medium & heavy users

80/20 principle (Praedo’s Law) —large percentage of revenue comes from a small, loyal percentage of customers.

Buyer-Readiness stage : unaware, aware, informed, interested, desire, and intend to buy.

Loyalty Status:

Hard-core loyals - 1 brand all the =me

Split loyals - loyal to 2/3 brands

ShiQing loyal - 1 brand to another

Switchers - No loyalty to any brand

AStude : The five a_tudes about products are: enthusias=c, posi=ve, indifferent, nega=ve, and hos=le

39
Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years
Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years
Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years
Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years
Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years

Bowties

Curls

Curly Shells

Elbow

Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years old
Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years old
Bowties Curls Curly Shells Elbow Fusillinni Lampare DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years old

Fusillinni

Lampare

DEMOGRAPHICS & SOCIO-ECONOMICS Females 25 to 35 years old Single , married , separated /widowed
DEMOGRAPHICS & SOCIO-ECONOMICS
Females
25 to 35 years old
Single , married , separated /widowed women
College, MBA/MA, doctorate
Income of at least 15,000/month
A,B, and upper C market
PSYCHOGRAPHICS , PERSONALITY, & VALUES
Market Lifestyle A
Market Lifestyle B
Single, health conscious woman who loves to
cook and try out new pasta recipes and other
Italian cuisines She is fond of hos=ng par=es
and “get together treats“ f or family and
friends.
Young domes=cated mom who du=fully
prepares healthy food for the family. She is a
young mom who always thinks of new ways to
sa=sfy gourmet cravings of her family.

Lampare

always thinks of new ways to sa=sfy gourmet cravings of her family. Lampare Fusillinni Curls Curly

Fusillinni

Curls

Curly Shells

Bowties

always thinks of new ways to sa=sfy gourmet cravings of her family. Lampare Fusillinni Curls Curly

Elbow

always thinks of new ways to sa=sfy gourmet cravings of her family. Lampare Fusillinni Curls Curly
always thinks of new ways to sa=sfy gourmet cravings of her family. Lampare Fusillinni Curls Curly

TARGET MARKET

TARGET MARKET DEMOGRAPHICS, SOCIO-ECONOMICS & PERSONALITY Gender Age of Target Market Males, Females, GLBT Primary
DEMOGRAPHICS, SOCIO-ECONOMICS & PERSONALITY Gender Age of Target Market Males, Females, GLBT Primary target
DEMOGRAPHICS, SOCIO-ECONOMICS & PERSONALITY
Gender
Age of Target Market
Males, Females, GLBT
Primary target market:
25 to 35 years old
Young working professionals who are struggling to maintain an ideal weight to achieve a fit &
healthy lifestyle in spite of hec=c and busy schedules. Also included in this category are
calorie-&-sugar phobic market who spends =me and money to get buff and pampered
because beauty & fitness are their work investments.
Secondary target market:
Trade dealers shelf space & stocks in the ff:
Educa=on
Income
1.   Supermarkets (SM, Robinsons, S&R, Rustan’s )
2.   Gyms/Fitness centers (Fitness First, Slimmers , Gold’s Gym)
3.   Top Spa centers (The Spa, Neo Day Spa, Get Away Spa, Blue & Water Spa, Nurture Spa)
4.   Aesthe=c centers (Belo Medical, Clarins Aesthe=cs, Marie France, Bio Essence)
College, MBA/MA, doctorate
Primary target: at least 15,000 / month
Social Economic Class
PSYCHOGRAPHICS & VALUES
Market Lifestyle A
Secondary target : not applicable (trade)
A, B, and upper C market
Market Lifestyle B
These are men and women on the heavy side who are obsess in achieving an ideal body
weight to live a fit and healthy lifestyles. They don’t have =me to go to the gym because of
their busy and hec=c schedules. They take diet gradually, and one step at a =me.
Branded as the “calorie-& -sugar phobic market” because they are willing to spend more just
to get rid of calories, and sugar in their meals/beverages. They are very vain and watchful of
their diets. They go to the gym regularly, and spends =me and money to get buff because
beauty & fitness are their work investments.
42
43
44

Target

Marketing

EFFECTIVE

SEGMETATION

CRITERIA

MEASURABLE - size, purchasing power, and characteristics

Substantial – LARGE AND PROFITABLE

Accessible

differentiaBLE

actionable

Evaluating and selecting market segments

Evaluating and selecting market segments Objective and resources 52

Objective and resources

SINGLE SEGMENT CONCENTRATION

concentrated marke=ng - the firm gains a strong knowledge and strong market presence. RISK: market segment can turn sour, or a compe=tor invasion super-segments rather than in isolated segments

RISK: market segment can turn sour, or a compe=tor invasion •   super-segments rather than in
54

SELECTIVE SPECIALIZATION

firm selects a number of segments, each objec=vely aPrac=ve and appropriate Risk diversity

•   firm selects a number of segments, each objec=vely aPrac=ve and appropriate •   Risk

Product Specialization

Makes & sells - different market segments Risk: Product replaced by new technology

•   Makes & sells - different market segments •   Risk: Product replaced by new

MARKET Specialization

Serve many needs of a group Strong reputa=on - channel for other products

MARKET Specialization Serve many needs of a group Strong reputa=on - channel for other products 57

FULL MARKET COVERAGE

The firm aPempts to serve all customer groups with all the products they might need. In undifferen0ated marke0ng , the firm ignores segment differences and goes aber the whole market with one offer. In differen0ated marke0ng , the firm operates in several market segments and designs different products for each segment

123 Memory Lane, State, Country P: 123.123.1234 / email@domain.com