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1
Importance of
Segmentation and Targeting
2
Identify the Total Market
Effective Segmentation
Positioning Strategy
Marketing Mix
4
Segmentation and Effectiveness
Effective
Segmentation
Positioning Strategy
Marketing Mix
6
Criteria for
successful segmentation
Ac
i sti nc tive tio
D n ab
l le
t ia
tan
bs
Su
Me Acc
a
Ide sura ess
ible
ntif ble
iab
le
7
Criteria for
successful segmentation
tive
Distinc •Clear differences
in consumer
preferences for a
product must
exist.
8
Criteria for
successful segmentation
•Difference
Me
a preferences for a
Ide sura
ntif ble
iab
le
product must be
identifiable and
capable of being
related to
measurable
variables.
9
Criteria for
successful segmentation
l
•The proposed
ti a
b sta
n
market segment
Su
must have enough
size and
purchasing power
to be profitable.
10
Criteria for
successful segmentation
•Companies must
Act
io nab
le
be able to respond
to difference
preferences with
an appropriate
marketing mix.
11
Criteria for
successful segmentation
Acc
•The proposed
ess
ible market segment
must be readily
accessible and
reachable with
market programs.
12
Determine Bases for Segmentation
Effective Segmentation
Positioning Strategy
Marketing Mix
14
Segmentation Base
Demographic Benefits-Sought
Segmentation Segmentation
Geographic Situation
Segmentation Segmentation
Psychographic Behavior/Usage
Segmentation Segmentation
15
Segmentation Base
Social class
Education Ethnic
16
Demographic
17
Segmentation
Segmentation Base
Base
Demographic Benefits-Sought
Segmentation Segmentation
Geographic Situation
Segmentation Segmentation
Psychographic Behavior/Usage
Segmentation Segmentation
18
Segmentation Base
19
Segmentation
Segmentation Base
Base
Demographic Benefits-Sought
Segmentation Segmentation
Geographic Situation
Segmentation Segmentation
Psychographic Behavior/Usage
Segmentation Segmentation
20
Segmentation Base
Demographic Benefits-Sought
Segmentation Segmentation
Geographic Situation
Segmentation Segmentation
Psychographic Behavior/Usage
Segmentation Segmentation
22
Segmentation Base
Demographic Benefits-Sought
Segmentation Segmentation
Geographic Situation
Segmentation Segmentation
Psychographic Behavior/Usage
Segmentation Segmentation
24
Segmentation Base
25
Segmentation
Segmentation Base
Base
Demographic Benefits-Sought
Segmentation Segmentation
Geographic Situation
Segmentation Segmentation
Psychographic Behavior/Usage
Segmentation Segmentation
26
Segmentation Base
Light
Light Users
Users
80%
80%
Heavy
Heavy Users
Users
20%
20%
27
Select Segments for Targeting
Positioning Strategy
Marketing Mix
Mass
Market
Niche Micro-
marketing The
Individual
e n ta ti o n S ize
Mar ke t Se gm
f
Continuum o Personal-
Micro- ization
Standardized Niche marketing
Marketing
Mix 30
Advantage of Targeting Efforts
31
Targeting Strategy
1.Undifferentiated marketing
2.Differentiated marketing
3.Concentrated marketing
32
Targeting Strategy
• Companies might
Undifferentiated targeting
strategy develop one marketing
mix strategy that is
Concentrated strategy appropriate for all
members of the total
Differentiated strategy market. Henry Ford
epitomised this strategy
when he offered the
Model T in only black
colour.
33
Targeting Strategy
Undifferentiated targeting
strategy
• Only one marketing
mix is developed
Concentrated strategy
and directed
toward a few, or
Differentiated strategy
perhaps one,
profitable market
segments.
34
Targeting Strategy
Undifferentiated targeting
strategy • Exists when a firm
develops different
Concentrated strategy
marketing mix
plans specially
Differentiated strategy
tailored for each of
two or more market
segments.
35
Select Positioning Strategy
Effective
Segmentation
Targeting Segment
Positioning Strategy
Marketing Mix
Positioning
37
Positioning
Positioning
Image that customers have about
a product in relation to the
38
product’s competitors
Select Positioning Strategy
• Effective positioning
– What consumers currently think about
the product, especially in relation to
competing products
– What the marketer wants consumers to
think about the product
– Which positioning strategy will elevate
the consumers’ current product image to
the desired product image.
39
Performance
40
Consistency
41
Reliability & Luxury
42
Durability
43
User friendly
44
Looks
45