MGMT3001_Week6_Fullslides_2010.ppt

March 1st, 2010 Identifying Market Segments, Targets, and Positioning Consumers are heterogeneous (i.e., different) in their needs/preferences and responses to marketing mix offerings (4P?s). It?s getting more and more difficult for a firm to satisfy all customers. Consumer A: ?Detergent that helps keep everyday laundry looking clean and new? Consumer C: ?Detergent that helps protect against fading, color transfer and fabric wear with or without bleach? Consumer B: ?Detergent that provides powerful stain removal and pretreating for physically active family? Consumer D: ?Detergent that provides mild cleaning benefits for a pure and simple clean? Consumer E: ?Detergent that helps clean tough baby and toddler stains? Tide Era Cheer Ivory Snow Dreft STP: Segmenting-Targeting-Positioning Market Segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes Target Marketing: The process of evaluating each market segment?s attractiveness and selecting one or more segments to enter Market Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment STP: Segmenting-Targeting-Positioning Group potential buyers into segments GAP Nike Pottery Barn Honda motor scooters P&G Blood Banks KFC STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Merchants Convincing the new merchant to accept the card Corporations Offering a corporate card program, which includes extensive employee expense and travel management services Small Businesses Offering ?Small Business Network? STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Market-Product Grid: Wendy?s New product? STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Target Marketing at different levels Undifferentiated Marketing Designing a product and a marketing program that will appeal to the largest number of buyers Differentiated Marketing Targeting several market segments and designing separate offers for each Concentrated Marketing Designing marketing mix toward only consumers (one or a few smaller segments or niches) that a company can serve best and most profitably Micromarketing Tailoring products and marketing program to suit the tastes of specific individuals and locations Targeting Broadly Targeting Narrowly Jacquilawson.com Concentrated Marketing Micromarketing STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Criteria to use in picking the target segments Compatibility with the organization?s objectives and resources Market variability, market size, cost of reaching the segments, expected growth Competitive position STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Choosing a positioning strategy Identifying possible competitive advantages Product, services, channels, people, image Choosing the right competitive advantages Important, distinctive, superior, communicable, affordable, profitable STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Choosing a positioning strategy Identifying possible competitive advantages Products, services, channels, people, images Choosing the right competitive advantages Important, distinctive, superior, communicable, affordable, profitable Volvo Singapore Airlines Amazon Avon Whirlpool STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Product positioning using perceptual maps Identification of the important attributes for a product class Judgments of existing products or brands with respect to these attributes Ratings of an ?ideal? product?s or brand?s attributes Perceptual Map: Chocolate Milk STP: Segmenting-Targeting-Positioning Group potential buyers into segments Group products to be sold into categories Develop a market-product grid and estimate size of markets Select target markets Develop positioning for target segments Develop a marketing mix for each segment Communicating and delivering the chosen position All of the company?s marketing mix efforts must support the positioning strategy. Quiz 2 March 8th: 5:45~6:45 Ch 6, 7, 8, 9 20 Multiple Choice Questions (2.5 points each) 2 open-ended questions (from Ch 8 and Ch 9, total 15points) How to prepare the quiz? Skim the textbook Read the lecture notes Carefully read the parts of the textbook discussed in the class Think about how to apply the terms or concepts to real-world examples Practice the on-line quiz Email Ji if you have questions