* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Slide 1
Service parts pricing wikipedia , lookup
Planned obsolescence wikipedia , lookup
Youth marketing wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Consumer behaviour wikipedia , lookup
Grey market wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Food marketing wikipedia , lookup
Product placement wikipedia , lookup
Perfect competition wikipedia , lookup
Darknet market wikipedia , lookup
Multicultural marketing wikipedia , lookup
Product lifecycle wikipedia , lookup
First-mover advantage wikipedia , lookup
Pricing strategies wikipedia , lookup
Predictive engineering analytics wikipedia , lookup
Green marketing wikipedia , lookup
Market analysis wikipedia , lookup
Market penetration wikipedia , lookup
Target audience wikipedia , lookup
Global marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Neuromarketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Sensory branding wikipedia , lookup
Target market wikipedia , lookup
Marketing strategy wikipedia , lookup
Product planning wikipedia , lookup
McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15 Market Segmentation and Product Positioning McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Introduction • Selection of the appropriate target market is paramount to developing successful marketing programs • Market segmentation is based on the idea that a single product usually will not appeal to all consumers 15-3 Introduction cont. • Market segmentation is the process of dividing a market into groups of similar consumers and selecting the most appropriate group(s) of individuals for the firm to serve • Five tasks in the process of market segmentation 15-4 Tasks in Market Segmentation Analyze Consumer-Product Relationships • Entails analysis of the affect and cognition, behavior, and environments involved in the purchase/consumption process for the particular product • Three general approaches – Brainstorm the product concept – Focus groups and other types of primary research – Secondary research 15-6 Analyze Consumer-Product Relationships cont. • Considerable information is available for analyzing various markets for many established product categories • For many products, the initial breakdown in markets is between the prestige and mass markets 15-7 Investigate Segmentation Bases • No simple way to determine the best bases for segmenting markets • Four specific types of segmentation – Benefit – Psychographic – Person/situation – Geodemographic 15-8 Useful Segmentation Bases for Consumer Markets Useful Segmentation Bases for Consumer Markets cont. Benefit Segmentation • Benefits people seek in consuming a given product is the basic reason for the existence of true market segments – Attempts to measure consumer value systems and consumers’ perceptions of various brands in a product class 15-11 Toothpaste Market Benefit Segmentation Psychographic Segmentation • Divides markets on differences in consumer lifestyles – Generally follows a post hoc model – Studies often include hundreds of questions and provide a tremendous amount of information about consumers – Activity, interest, and opinion (AIO) questions are sometimes very general – Validity of this segmentation is sometimes questioned 15-13 Psychographic Segmentation cont. – The best-known psychographic segmentation is called VALS • Based on two dimensions – Vertical dimension » Based on the degree to which they are innovative and have resources – Horizontal dimension » Motivated primarily by ideals » Motivated primarily by achievement » Motivated primarily by self-expression 15-14 VALS™ Framework and Segments 15-15 VALSTM Framework and Segments cont. Person/Situation Segmentation • Markets can often be divided on the basis of the usage situation in conjunction with individual differences of consumers – Combines not only the person and the situation, but also other important segmentation bases • Benefits sought • Product and attribute perceptions • Marketplace behavior 15-17 Person/Situation Segmentation cont. 15-18 Geodemographic Segmentation • Identifies specific households by – Focusing on local neighborhood geography – Creates classifications of actual, addressable, mappable neighborhoods where consumers live and shop – PRIZM NE system • Based on the assumptions that consumers in particular neighborhoods are similar in many respects and that the best prospects are those who actually use a product or other consumes like them 15-19 Develop Product Positioning • Positioning the product relative to competing products in the minds of consumers – Key objective is to form a particular brand image in consumers’ minds – Accomplished by developing a coherent strategy that may involve all of the marketing mix elements 15-20 Develop Product Positioning cont. – Five approaches to positioning strategy: • • • • • Attribute Use or application Product user Product class Competitors 15-21 Positioning by Attribute • Associating a product with an attribute, a product feature, or a customer feature – A new product can be positioned with respect to an attribute ignored by competitors – Sometimes a product can be positioned in terms of two or more attributes simultaneously – The price/quality attribute dimension is commonly used for positioning products as well as stores 15-22 Positioning by Use or Application • Products can have multiple positioning strategies, although increasing the number involves difficulties and risks • Often a positioning-by-use strategy represents a second or third position designed to expand the market 15-23 Positioning by Product User • Positions products according to segments of class of users that use the product/ brand • Highlights a specific lifestyle profile 15-24 Positioning by Product Class • Positioning of product according to product class, usually keeping one element as the identifying category representation 15-25 Positioning by Competitors • Competition is the explicit or implicit frame of reference – Major purpose is to convince consumers that a brand is better than the market leader on important attributes – Positioning with respect to a competitor is commonly done in advertisements in which a competitor is named and compared 15-26 Positioning Maps • A visual depiction of consumers’ perceptions of competitive products, brands, or models – Constructed by surveying consumers about various product attributes and developing dimension and a graph indicating the relative position of competitors – Can give marketers a sense of how their brands are perceived by consumers relative to competitors and suggest positioning strategies 15-27 Positioning Map for Automobiles 15-28 Select Segmentation Strategy • Four basic segmentation strategy alternatives – May decide not to enter the market – May decide to be a mass marketer instead of segmenting – May decide to market to only one segment – May decide to market more than one segment and design a separate marketing strategy for each 15-29 Select Segmentation Strategy cont. • Marketers must have some criteria on which to base segmentation strategy decisions – Measurable – Meaningful – Marketable 15-30 Design Marketing Mix Strategy • Selecting the target market and designing the marketing mix go hand-in-hand • Many marketing mix decisions are made in conjunction with target market selections 15-31 Summary • Market segment was defined • Market segmentation was analyzed in terms of interrelated tasks • Noted that market segmentation is a cornerstone of sound marketing strategy development 15-32