* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download MARKET SEGMENTATION
Ambush marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Marketing communications wikipedia , lookup
Perfect competition wikipedia , lookup
Digital marketing wikipedia , lookup
Service parts pricing wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Marketing research wikipedia , lookup
Viral marketing wikipedia , lookup
Dumping (pricing policy) wikipedia , lookup
Youth marketing wikipedia , lookup
First-mover advantage wikipedia , lookup
Direct marketing wikipedia , lookup
Grey market wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Marketing plan wikipedia , lookup
Street marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Marketing channel wikipedia , lookup
Market penetration wikipedia , lookup
Darknet market wikipedia , lookup
Sensory branding wikipedia , lookup
Multicultural marketing wikipedia , lookup
Green marketing wikipedia , lookup
Product planning wikipedia , lookup
Target audience wikipedia , lookup
Advertising campaign wikipedia , lookup
Market analysis wikipedia , lookup
Global marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Target market wikipedia , lookup
Chapter Overview: 1. What is Market Segmentation 2. Levels of Market Segmentation 3. Bases for Segmenting Markets 3 Steps in Target Marketing (S T P) 0 Segmentation Marketing 0 Identify bases for segmenting the market 0 Develop segment profiles 0 Target Marketing 0 Develop measure of segment attractiveness 0 Select target segments 0 Market Positioning 0 Develop positioning for target segments 0 Develop a marketing mix for each segment Market Segmentation 0 CONCEPT AND DEFINITION The concept of market segment is based on the fact that the market of commodities are not homogeneous but they are heterogeneous. Market represent a group of customer having common characteristics but two customer are never common in their nature, habits, hobbies, income and purchasing techniques. Defining Market Segmentation 0 According to Philip Kotler , “Market segmentation is subdividing a market into distinct and homogeneous subgroups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.” Market Segmentation 0Market Segmentation is a method of “dividing a market (Large) into smaller groupings of consumers or organizations in which each segment has a common characteristic such as needs or behavior.” LEVELS OF MARKET SEGMENTATION Evolving Marketing Strategies 0 Mass Marketing: 0 The term mass market refers to a large, undifferentiated market of consumers with widely varied backgrounds. 0 Products and services needed by almost every member of society are suited for the mass market. Such items as electric and gas, utilities, soap, paper towels and gasoline, for example, can be advertised and sold to almost anyone, making them mass market goods. 1. Mass Marketing 0 An attempt to appeal to an entire market with one basic marketing strategy utilizing mass production, mass distribution and mass promotion of one product for all buyers. Also called undifferentiated marketing. 0 The appeal of mass marketing is in the potential for higher total profits. Companies that employ the system expect the larger profit to result from: 0 (1) expanded volume through lower prices, and 0 (2) reduced costs through economies of scale made possible by the increased volume. 0 Henry Ford applied the concept in the automobile industry. His Model-T was conceived and marketed as a "universal" car — one that would meet the needs of all buyers. Mass Marketing Henry Ford epitomized this strategy when he offered the Model- T Ford in one color , black. Ford Model-T was the first to mass market automobiles. Ford mass produced by assembly line, mass distributed through dealers, and mass promoted one product for all buyers. 2. SEGMENT MARKETING A market segment consists of a large identifiable group of customers within a market who share a similar set of needs and wants, purchasing power, geographical location, buying attitudes, or buying habits. Identifiable Group with in a Market with Similar • Similar Needs & Wants • Purchasing Power • Geographical Location • Buying Attitudes Example: Automakers may identify four broad segments in the car market. Buyers who are primarily seeking: 1. Low-cost Basic Transportation Toyota Wigo, Mitsubishi Mirage, Honda Brio, Kia Picanto, Hyundai Eon & i10, Tata Indigo 2.Driving Thrills & High Performance Toyota 86, Subaru BRZ, Subaru WRX STI, Ford Mustang, Chevrolet Camaro, Nissan GTR 3. Luxurious Driving Experience Lexus LFA, Mercedes, BMW, Audi, Bently, Meserati 4. Supercar / Hypercar McLaren, Ferrari, Bugatti, Lamborghini, Pagani, Renault 5. Car Safety Features Volvo Top Safety Features Volvo 360 Degrees Surround Camera; Blind Spot Information System, Lane Keeping Warning, Volvo Adaptive Cruising, Park Assist Pilot, Active High beam Headlights Safety Features Subaru Forester Strong Utilitarian Body Structure, Eye Sight Camera Off-road Safety with X Mode , Best crash-test ratings in its class Safety Features Ford Focus & Ford Explorer Ford Focus: Active City Stop, Blind Spot Warning, Self-parking Ford Explorer: Inflatable seatbelt Safety? FLEXIBLE MARKET OFFERING 0 Consists of the product and service elements that all segment members value, plus options (additional charge) that some segment members value. 0 Even in segments, 100 % of their needs are not the same. FLEXIBLE MARKET OFFERING 0 Consists of two parts. 1.Naked Solution : - products and services that all members of the segment values. 2.Discretionary options : - that some segment members value. Each option might carry an additional charge. FLEXIBLE MARKET OFFERING 0 Need: Low Cost Basic Transportation 1. Naked Solution: Mitsubishi Mirage 2. Discretionary options: 2 Trims in 4 variants to choose from Mirage GLX (MT) – P503,000 Mirage GLX (CVT) – P553,000 ^P50K (CVT) Mirage GLS (MT) – P598,000 ^P95K (Trim) Mirage GLS (CVT) – P648,000 (MT) – Manual Transmission (CVT) – Continuous Variable Transmission (Automatic) FLEXIBLE MARKET OFFERING Manual or CVT? FLEXIBLE MARKET OFFERING Mirage GLX (MT) - P503K 0 0 0 0 0 0 0 0 0 0 0 0 0 Ignition key starter Key entry Option: SAT-NAV system Option: Touch screen multimedia entertainment 2 Speakers Non leather wrapped steering wheel Manual control air con Driver side airbag only 14” steel rim w/ hubcaps No fog lamps No rear spoiler 2 front doors power windows Option: ABS w/EBD Mirage GLS (MT) – P598K 0 0 0 Start/stop push button starter system Keyless entry system SAT-NAV equipped touch screen multimedia entertainment 0 0 0 0 0 6 Speakers Leather wrapped steering wheel Automatic climate control air con Twin airbags 15” alloy wheel 0 0 0 0 Fog Lamps Rear spoiler Central locking 4 door power windows ABS w/ electronic brace-force distribution FLEXIBLE MARKET OFFERING Delta Airlines offers all economy passengers a seat and soft drinks. It charges economy passengers extra for alcoholic beverages. 2. NICHE MARKETING Group of customers seeking a distinctive mix of benefits who are ready to pay extra premium. A niche is a more narrowly defined customer group typically a small market whose needs are not being well served. Marketers usually identify niches by dividing a segment into sub segments or by defining a group seeking a distinctive mix of benefits. Niche = segment sub – segments NICHE MARKETING Ex. Car buyers who are primarily seeking for thrills and high performance. [MT] Manual Transmission [CVT] Continuous Variable Transmission with Paddle shifter NICHE MARKETING 3. LOCAL MARKETING 0 Marketing programs tailored to the needs & wants of local customer groups in trading areas, neighborhoods , etc. 0 This trend is called grass roots marketing. LOCAL MARKETING 4. INDIVIDUAL MARKETING 0 Ultimate segmentation – segments of 1 or customized marketing or one-to-one marketing. 0 Customerization – empower the consumers to design the product or service offering of their choice. Bases for Segmenting Consumer Markets GEOGRAPHIC SEGMENTATION Divides the market into different geographical units such as nations, regions, states, counties, or cities. Mcdonalds globally, sell burgers aimed at local markets, for example, burgers are made from lamb in India rather then beef because of religious issues. In Mexico more chilli sauce is added and so on. Tereyaki burger in Japan. Toyota Motor Corporation DEMOGRAPHIC SEGMENTATION Demographic segmentation is the most popular segmentation method because consumer needs, wants, and usage often vary closely with demographic variables and are easier to measure than other types of variables. Demographic Segmentation Income Level Age Family Ethnicity Education Dr. Rosenbloom Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and lifecycle groups. As people age their needs and wants change, some organizations develop specific products aimed at particular age groups for example nappies for babies, toys for children, clothes for teenagers and so on. Gender segmentation is commonly used within the cosmetics, clothing and magazine industry. Income segmentation is another strategy used by many organizations. Products and services are also aimed at different lifecycle segments. Holidays are developed for families, the 18-30's singles, and for those in their 50's. Gender Geographic Segmentation Psychographic Segmentation Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits. Swatch targets those with an active lifestyle Behavioral Segmentation Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product • • • • • Occasion Benefits sought User status Usage rate Loyalty status Behavioral Segmentation Occasion segmentation divides buyers into groups according to occasions when they get the idea to buy, actually make purchases, or respond to a product. Benefit segmentation requires finding the major benefits people look for in the product class, the kinds of people who look for each benefit, and the major brands that deliver each benefit. Behavioral Segmentation User status divides buyers into ex-users, potential users, first-time users, and regular users of a product. Usage rate divides buyers into light, medium, and heavy product users. Loyalty status divides buyers into groups according to their degree of loyalty Segmentation Criteria [MASDA] To be useful, a market segment must be: • • • • • Measurable Accessible Substantial Differentiable Actionable Requirements for Effective Segmentation Segmentation Criteria Measurable examples include the size, purchasing power, and profiles of the segments. Accessible refers to the fact that the market can be effectively reached and served. Substantial refers to the fact that the markets are large and profitable enough to serve. Differentiable refers to the fact that the markets are conceptually distinguishable and respond differently to marketing mix elements and programs. Actionable refers to the fact that effective programs can be designed for attracting and serving the segments.