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2007 Pearson Education Canada3 Market Differentiation QTG Canada (Quaker Tropicana Gatorade) is a market differentiator Targeting several market segments with several different products and marketing plans Different marketing strategies for each product and segment Not putting all eggs in one basket – very beneficial! Cost of differentiation can be high (spreading resources thinly) – must evaluate potential revenues carefully against costs!
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2007 Pearson Education Canada2007 Pearson Education Canada 11
Marketing 11Marketing 11Chapter 6 Chapter 6 Market Segmentation and Market Segmentation and Target marketingTarget marketing
Lesson 3: Lesson 3: Market Segmentation Strategiespp. 150-159pp. 150-159
2007 Pearson Education Canada2007 Pearson Education Canada 22
Market Segmentation Market Segmentation StrategiesStrategies
MarketDifferentiation
NicheMarketing
Operate in many segments, with many products with unique marketing strategies.
All resources aimed at a distinct segment.
Market Integration
A company expands from a segment to embrace other similar segments
2007 Pearson Education Canada2007 Pearson Education Canada 33
Market DifferentiationMarket Differentiation
QTG Canada (Quaker Tropicana Gatorade) is a market differentiator
Targeting several market segments with several different products and marketing plans
Different marketing strategies for each product and segment
Not putting all eggs in one basket – very beneficial!
Cost of differentiation can be high (spreading resources thinly) – must evaluate potential revenues carefully against costs!
2007 Pearson Education Canada2007 Pearson Education Canada 44
Niche MarketingNiche Marketing1.1. The niche is sufficiently large and has The niche is sufficiently large and has
enough purchasing power to be profitable.enough purchasing power to be profitable.2.2. It is of negligible interest to major It is of negligible interest to major
competitors so that there is little threat competitors so that there is little threat from these firms.from these firms.
3.3. The firm has the required skills and The firm has the required skills and resources to serve the segment effectively.resources to serve the segment effectively.
4.4. The firm can defend itself from an The firm can defend itself from an attacking competitor.attacking competitor.
TSN (The Sports Network) is a market nicher.
2007 Pearson Education Canada2007 Pearson Education Canada 55
Market IntegrationMarket IntegrationExpand from a single segment into other similar segments
Why choose a market integration strategy?1. The needs of consumers change
2. New competition enters a particular segment
3. Products and markets reach the maturity stage of the product life cycle and are threatened by new, innovative products
• Wal-Mart adds groceries
• Loblaw’s and other supermarkets add pharmacies
2007 Pearson Education Canada2007 Pearson Education Canada 66
PositioningPositioning
“The place a brand occupies in the customer’s mind in relation to competing products.”
Positioning involves a 2-Step Process:
1. Develop and market a product that meets needs of target market.
2. Create appropriate appeals to differentiate the product in the customer’s mind.
2007 Pearson Education Canada2007 Pearson Education Canada 77
Positioning StrategiesPositioning Strategies
1. Head-on
2. Brand Leadership
3. Product Differentiation
4. Innovation
5. Lifestyle
2007 Pearson Education Canada2007 Pearson Education Canada 88
RepositioningRepositioning
“Changing the placea product occupiesin the consumer’smind.”
Repositioning is due to:1. The activity of a direct
competitor.
2. The preferences of a target market change.
Cadillac reinvented itself. It’s no longer grandpa’s car!
2007 Pearson Education Canada2007 Pearson Education Canada 99
Any Questions?Any Questions?
Assignment:Assignment:•Read p. 150-159Read p. 150-159•Complete WSH 6.3Complete WSH 6.3