Download Market Segmentation, Targeting, and Positioning

Chapter 8
Market
Segmentation,
Targeting, and
Positioning
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 4th edition
Kotler, Bowen, and Makens
“The mythological, homogeneous
America is gone. We are a
mosaic of minorities.”
-Joel Weiner
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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Kotler, Bowen, and Makens
Chapter Objectives
• Explain market segmentation and
identify several possible bases for
segmenting markets
• List and distinguish among the
requirements for effective segmentation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
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Kotler, Bowen, and Makens
Chapter Objectives
• Outline the process of evaluating
market segments
• Illustrate the concept of positioning for
competitive advantage
• Discuss choosing and implementing a
positioning strategy
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Markets
• A market is all actual and potential
buyers of a product or service
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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and Tourism,
4th edition
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Kotler, Bowen, and Makens
Stages of Marketing
• Mass marketing
• Product-variety marketing
• Target marketing
• Micromarketing
• Customized marketing
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Kotler, Bowen, and Makens
Market Segmentation
• Geographic Segmentation
• Demographic Segmentation
• Psychographic Segmentation
• Behavior Segmentation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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Kotler, Bowen, and Makens
Geographic Segmentation
• Dividing the market into different
geographic units
– Nations
– States
– Regions
– Counties
– Cities
– Neighborhoods
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Kotler, Bowen, and Makens
Demographic Segmentation
• Dividing the market into groups based
on demographic variables
– Age
– Gender
– Income
– Occupation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Kotler, Bowen, and Makens
Psychographic Segmentation
• Dividing buyers into different groups
based on social class, lifestyle, and
personality characteristics
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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and Tourism,
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Kotler, Bowen, and Makens
Behavior Segmentation
• Buyers are divided into groups based on their
knowledge, attitude, and use or response to a
product
• The best starting point for building market segments
• Types
– Special occasion segmentation
– Benefits sought
– User status
– Usage rate
– Loyalty status
– Buyer readiness stage
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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4th edition
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Kotler, Bowen, and Makens
Requirements for Effective
Segmentation
• Measurability
• Accessibility
• Substantiality
• Actionability
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
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Kotler, Bowen, and Makens
Requirements for Effective
Segmentation
Measurable
Accessible
Substantial
Actionable
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
• Size, purchasing power, profiles
of segments can be measured.
• Segments can be effectively
reached and served.
• Segments are large or profitable
enough to serve.
• Effective programs can be
designed to attract and serve
the segments.
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Kotler, Bowen, and Makens
Market Targeting
• Evaluating Market Segments
• Selecting Market Segments
• Choosing a Market-Coverage Strategy
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Evaluating Market
Segments
• Segment Size and Growth
• Segment Structural Attractiveness
• Company Objectives and Resources
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
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Selecting Market Segments
• Undifferentiated Marketing
• Bifurcated Marketing
• Differentiated Marketing
• Concentrated Marketing
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
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Choosing a Market –
Coverage Strategy
• Company resources
• Degree of product homogeneity
• Market homogeneity
• Competitors’ strategies
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Positioning Strategies
• Products can be positioned on specific
attributes or against another product
class
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
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Choosing and Implementing
a Positioning Strategy
1. Identifying a set of possible competitive
advantages upon which to build a position
2. Selecting the right competitive advantages
3. Effectively communicating and delivering
the chosen position to a carefully selected
target market
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Product Differentiation
• Physical Attribute Differentiation
• Service Differentiation
• Personnel Differentiation
• Location Differentiation
• Image Differentiation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Selecting the Right
Competitive Advantages
• Avoid:
– Underpositioning - failing ever to position
the company at all
– Overpositioning - giving buyers too
narrow a picture of the company
– Confused positioning - leaving buyers
with a confused image of a company
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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Kotler, Bowen, and Makens
Selecting the Right
Competitive Advantages
• Brand differences should meet the following
criteria prior to marketing:
–
–
–
–
–
–
–
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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for Hospitality
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and Tourism,
4th edition
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Kotler, Bowen, and Makens
Positioning Measurement
• Perceptual mapping is a research tool
used to measure a brand’s position
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
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Kotler, Bowen, and Makens
Perceptual Map
Positioning map of service level versus price.
(From Christopher Lovelock, Services Marketing, Upper Saddle River, NJ: Prentice Hall, 1996, p.178.)
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Kotler, Bowen, and Makens
Best Practices
• Carnival Cruise lines
• Southwest Airlines
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler, Bowen, and Makens
Key Terms
• Behavioral segmentation
• Benefit segmentation
• Competitive advantage
• Competitors’ strategies
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler, Bowen, and Makens
Key Terms
• Confused positioning
• Customized marketing
• Degree of product homogeneity
• Demographic segmentation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler, Bowen, and Makens
Key Terms
• Existing competitor
• Gender segmentation
• Geographic segmentation
• Income segmentation
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler, Bowen, and Makens
Key Terms
•
•
•
•
•
Market
Market homogeneity
Market positioning
Market segmentation
Market targeting
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
4th edition
Kotler, Bowen, and Makens
Key Terms
•
•
•
•
•
©2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Micromarketing
Overpositioning
Psychographic segmentation
Specific product attributes
Underpositioning
Marketing
Marketing
for Hospitality
for Hospitality
and Tourism,
and Tourism,
4th edition
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Kotler, Bowen, and Makens