39
Ch 7 -1 Copyright © 2011 Pearson Education

Marketing chapter 7[1]

  • View
    1.918

  • Download
    4

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Marketing chapter 7[1]

Ch 7 -1 Copyright © 2011 Pearson Education

Page 2: Marketing chapter 7[1]

Principles of Marketing, Arab World Edition

Philip Kotler, Gary Armstrong, Anwar Habib, Ahmed Tolba

Presentation prepared by Annelie Moukaddem Baalbaki

CHAPTER SEVENCustomer-Driven Marketing Strategy: Segmentation, Targeting & Positioning

Lecturer: Insert your name here

Ch 7 -2 Copyright © 2011 Pearson Education

Page 3: Marketing chapter 7[1]

Chapter Learning Outcomes

7.1 Customer-Driven Marketing Strategy

7.2 Market Segmentation

7.3 Market Targeting

7.4 Differentiation and Positioning

Ch 7 -3 Copyright © 2011 Pearson Education

Topic Outline

Page 4: Marketing chapter 7[1]

Segmentation, Targeting and Positioning

Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs.

Market targeting (targeting) is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Segmentation and Targeting

Ch 7 -4 Copyright © 2011 Pearson Education

Page 5: Marketing chapter 7[1]

Segmentation, Targeting and Positioning

Differentiation involves actually differentiating the market offering to create superior customer value.

Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Market Differentiation and Positioning

Ch 7 -5 Copyright © 2011 Pearson Education

Page 6: Marketing chapter 7[1]

Market Segmentation

Ch 7 -6 Copyright © 2011 Pearson Education

Page 7: Marketing chapter 7[1]

Market Segmentation

• Segmenting consumer markets

• Segmenting business markets

• Segmenting international markets

• Requirements for effective segmentation

Ch 7 -7 Copyright © 2011 Pearson Education

Page 8: Marketing chapter 7[1]

Market Segmentation

Segmenting Consumer Markets

Ch 7 -8 Copyright © 2011 Pearson Education

Page 9: Marketing chapter 7[1]

Market Segmentation

Geographic segmentation divides the market into different geographical units such as nations, regions, provinces, parishes, cities, or even neighborhoods.

Segmenting Consumer Market

Ch 7 -9 Copyright © 2011 Pearson Education

Page 10: Marketing chapter 7[1]

Market Segmentation

Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

Segmenting Consumer Markets

Ch 7 -10 Copyright © 2011 Pearson Education

Page 11: Marketing chapter 7[1]

Market Segmentation

Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups.

Gender segmentation divides the market based on sex (male or female).

Income segmentation divides the market into affluent or low-income consumers.

Demographic Segmentation

Ch 7 -11 Copyright © 2011 Pearson Education

Page 12: Marketing chapter 7[1]

Market Segmentation

Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics.

Psychographic Segmentation

Ch 7 -12 Copyright © 2011 Pearson Education

Page 13: Marketing chapter 7[1]

Market Segmentation

Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.

• Occasions

• Benefits sought

• User status

• Usage rate

• Loyalty status

Behavioral Segmentation

Ch 7 -13 Copyright © 2011 Pearson Education

Page 14: Marketing chapter 7[1]

Market Segmentation

Multiple segmentation is used to identify smaller, better-defined target groups.

Using Multiple Segmentation Bases

Ch 7 -14 Copyright © 2011 Pearson Education

Page 15: Marketing chapter 7[1]

Market Segmentation

Segmenting Business Markets

Ch 7 -15 Copyright © 2011 Pearson Education

Page 16: Marketing chapter 7[1]

Market SegmentationSegmenting International markets

Ch 7 -16 Copyright © 2011 Pearson Education

Page 17: Marketing chapter 7[1]

Market Segmentation

Inter-market segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries.

Segmenting International Markets

Ch 7 -17 Copyright © 2011 Pearson Education

Page 18: Marketing chapter 7[1]

Market Segmentation

To be useful, market segments must be:

Requirements for Effective Segmentation

Ch 7 -18 Copyright © 2011 Pearson Education

Page 19: Marketing chapter 7[1]

Market Targeting

Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.

Target Market

Ch 7 -19 Copyright © 2011 Pearson Education

Page 20: Marketing chapter 7[1]

Market Targeting

• Segment size and growth

• Segment structural attractiveness

• Company objectives and resources

Evaluating Market Segments

Ch 7 -20 Copyright © 2011 Pearson Education

Page 21: Marketing chapter 7[1]

Market Targeting

Ch 7 -21 Copyright © 2011 Pearson Education

Page 22: Marketing chapter 7[1]

Market Targeting

Undifferentiated marketing targets the whole market with one offer

• Mass marketing

• Focuses on common needs rather than what’s different

Selecting Target Marketing Segments

Ch 7 -22 Copyright © 2011 Pearson Education

Page 23: Marketing chapter 7[1]

Market Targeting

Differentiated marketing targets several different market segments and designs separate offers for each.

• Goal is to achieve higher sales and a stronger position

• More expensive than undifferentiated marketing

Selecting Target Marketing Segments

Ch 7 -23 Copyright © 2011 Pearson Education

Page 24: Marketing chapter 7[1]

Market Targeting

Concentrated marketing targets a large share of one or a few smaller segments or niches.

• Limited company resources

• Knowledge of the market

• More effective and efficient

Selecting Target Marketing Segments

Ch 7 -24 Copyright © 2011 Pearson Education

Page 25: Marketing chapter 7[1]

Market Targeting

Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations.

• Local marketing

• Individual marketing

Selecting Target Marketing Segments

Ch 7 -25 Copyright © 2011 Pearson Education

Page 26: Marketing chapter 7[1]

Market Targeting

Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups

• Cities

• Neighborhoods

• Stores

Selecting Target Marketing Segments

Ch 7 -26 Copyright © 2011 Pearson Education

Page 27: Marketing chapter 7[1]

Market Targeting

Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers.

Also known as:

• One-to-one marketing

• Customized marketing or mass customization

• Markets-of-one marketing

Target Market Strategies

Ch 7 -27 Copyright © 2011 Pearson Education

Page 28: Marketing chapter 7[1]

Market Targeting

Depends on:

• Company resources

• Product variability

• Product life-cycle stage

• Market variability

• Competitor’s marketing strategies

Choosing a Targeting Strategy

Ch 7 -28 Copyright © 2011 Pearson Education

Page 29: Marketing chapter 7[1]

Market Targeting

Concern for vulnerable segments (Children) with controversial or potentially harmful products.

• Cigarettes

• Internet abuses

Socially Responsible Target Marketing

Ch 7 -29 Copyright © 2011 Pearson Education

Page 30: Marketing chapter 7[1]

Differentiation and Positioning

Product position is the way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.

• Perceptions

• Impressions

• Feelings

Positioning

Ch 7 -30 Copyright © 2011 Pearson Education

Page 31: Marketing chapter 7[1]

Differentiation and Positioning

Ch 7 -31 Copyright © 2011 Pearson Education

Page 32: Marketing chapter 7[1]

Differentiation and Positioning

• Identifying a set of possible competitive advantages to build a position

• Choosing the right competitive advantages

• Selecting an overall positioning strategy

Choosing a Differentiation and Positioning Strategy

Ch 7 -32 Copyright © 2011 Pearson Education

Page 33: Marketing chapter 7[1]

Differentiation and Positioning

Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

Choosing a Differentiation and Positioning Strategy

Ch 7 -33 Copyright © 2011 Pearson Education

Page 34: Marketing chapter 7[1]

Differentiation and Positioning

Identifying a set of possible competitive advantages to build a position by providing superior value from:

Identifying Possible Value Differences and Competitive Advantages

Ch 7 -34 Copyright © 2011 Pearson Education

Page 35: Marketing chapter 7[1]

Differentiation and Positioning

Difference to promote should be:

Choosing the Right Competitive Advantage

Ch 7 -35 Copyright © 2011 Pearson Education

Page 36: Marketing chapter 7[1]

Differentiation and Positioning

Ch 7 -36 Copyright © 2011 Pearson Education

Page 37: Marketing chapter 7[1]

Differentiation and Positioning

To (target segment and need) our (brand) is (concept) that (point of difference).

Developing a Positioning Statement

Ch 7 -37 Copyright © 2011 Pearson Education

Page 38: Marketing chapter 7[1]

Communication and Delivering the Chosen

Position

A company must take steps to deliver and communicate the desired position to target consumers.

Choosing the positioning is often easier than implementing the position.

Delivering the chosen position

Ch 7 -38 Copyright © 2011 Pearson Education

Page 39: Marketing chapter 7[1]

This work is protected by local and international copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning.

Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from this

site should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by

these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials.

Ch 7 -39 Copyright © 2011 Pearson Education