Académique Documents
Professionnel Documents
Culture Documents
Sessions 8 and 9
Learning Outcomes
Explain the importance of market segmentation.
Discuss criteria for successful market segmentation.
Describe the steps involved in segmenting markets.
List the steps involved in segmenting markets.
Understand how a company should choose the
most attractive segments
6. Describe the concept of differentiation and its role in
building brands.
7. Understand the positioning process with details on
perceptual positioning.
1.
2.
3.
4.
5.
Targeting
Identifying
similar groups of
customers with
distinct needs,
characteristics or
behaviour
Identifying
segments to aim
based on
attractiveness
and company
objectives and
resources
Male/female
consumers of
skincare products,
aged 18-25. 26-35,
36-45, 46-65, 65+
Female consumers
18-25
Positioning
Creating a
concept to
appeal to the
target segment
Position skincare
products as
essential for selfrespect
efforts.
o Facilitate right choice of target market.
o Leverage scarce resources.
o Help identification of less satisfied segments and
concentrate on them.
Measurable
Accessible
Substantial
Differentiable
Actionable
5
Respond differently
Segmentation Criteria
Consumer Criteria
Profile
Psychological
Demographic
Lifestyle
Purchase
Socioeconomic
Personality
Usage
Geographic
Perceptions
Media usage
Attitudes
Technology usage
Motives
Benefits sought
WHY & WHO
6
Behavioural
Segmentation Considerations
Difficult
and
High
Behavioural
Psychological
Geodemographic
Demographic
Easy
and
Low
Low
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High
Demographics
Age
Family size
Gender
Generation
Income
Occupation
Education
Single, married no children, married with children, old married without children,
senior citizens
Male, female
1.8
A3
3.2
B1
4.3
B2
5.3
C1
7.5
C2
7.9
D1
11.4
D2
14.7
E1
18.4
E2
15.4
E3
9.7
0.0
5.0
0.4
10.0
15.0
20.0
Geographic
Urban and rural
o 31% and 69% with buying power of 55% to 45%
Regions
o North, South, West, East
Cities
o
o
o
o
o
o
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HPI
2010 Q4
2011 Q 4
Change
2012 Q 4
Change
200 +
2.1
2.7
28.6%
3.4
25.9%
151-200
1.2
1.5
25.0%
1.7
13.3%
101-150
1.8
2.3
27.8%
2.8
21.7%
71-100
3.5
4.1
17.1%
5.4
31.7%
51-70
2.3
2.8
21.7%
3.3
17.9%
31-50
7.5
8.6
14.7%
10.0
16.3%
21-30
8.1
9.4
16.0%
11.1
18.1%
11-20
30.7
33.6
9.4%
36.6
8.9%
6-10
41.2
46.8
13.6%
50.4
7.7%
0-5
135.0
126.1
-6.6%
118.1
-6.3%
Average HPI
13.7
15.9
16.1%
18.1
13.8%
Psychographic Segmentation
Division of market into
different groups based on
social class, lifestyle, or
personality characteristics.
People in the same
demographic classification
often have very different
lifestyles and personalities.
It measures persons
activities, interests and
opinions.
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ACTIVITIES
INTERESTS
OPINIONS
Work
Family
Themselves
Hobbies
Home
Social Issues
Social Events
Job
Politics
Vacation
Community
Business
Entertainment
Recreation
Economics
Club Membership
Fashion
Education
Community
Food
Products
Shopping
Media
Future
Sport
Achievements
Culture
VALS Model
Value knowledge
Little interest in image or
prestige
Like educational programming
Voracious readers
Image conscious
Relatively affluent
Attracted to premium products
Average TV watchers
Traditional
Family oriented
Slow to change habits
Look for bargains
Watch TV more than average
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Restricted consumption
Concerned with security and safety
Brand loyal
Trust advertising
Self-confident
Enjoy the finer things
Receptive to new products and technologies
Sceptical of advertising
Action oriented
Follow fashion and fads
Maximum spend on
socialising
Impulsive buyers
Image conscious
Limited discretionary
income
Spend on clothing and
personal care products
Prefer TV to reading
Hands on
Shop for comfort,
durability and value
Unimpressed by
luxuries
Behavioral Segmentation
Occasion
Benefits Sought
holidays.
Special products for special
occasions.
Decision Roles
Initiator
Influencer
Decider
Buyer
User
Loyalty Status
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Usage Rate
Non-users
Light users
Medium users
Heavy users
Unaware
Aware
Informed
Interested
Ready to buy
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Sensors
Segment
Sociables
Workers
Independent
Flavour, product
appearance
Brightness
of teeth
Decay
prevention
Price
Demographic strengths
Children
Teens, young
people
Large families
Men
Special behavioural
characteristics
Users of
spearmintflavoured
toothpaste
Smokers
Heavy users
Heavy users
Personality characteristics
High selfinvolvement
High
sociability
High
hypochondriasis
High
autonomy
Lifestyle characteristics
Hedonistic
Active
Conservative
Valueoriented
Industry:
Company size:
Location:
Operating Variables
What customer technologies should we focus
on?
5. User status:
Should we serve heavy users, medium users,
light users, or nonusers?
6. Customer capabilities: Should we serve customers needing many or
few services?
4.
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Technology:
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Personal Characteristics
15. Buyer Seller similarity: Should we serve companies whose people
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Targeting
Which segment should the company serve?
Normally done on the basis of:
o Segment size and growth
o Segment profitability
o Competitive intensity within the segment
o Cyclical nature of the industry
21
Concentrated
(niche) marketing
Differentiated
(segmented)
marketing
Go after a large
share of a small
segment
Undifferentiated
(mass) marketing
Treats market with
no individual
segments
Micromarketing (local
or individual)
marketing
Seeing the individual in
marketing
23
24
Positioning
26
28
Product
differentiation
Service
differentiation
People
differentiation
29
Channel
differentiation
Image
differentiation
Pre-emptive
Affordable
Profitable
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The idea is to
create a
Unique
Selling
Proposition
2. Determinant Attributes
Features
Benefits
Parentage
Manufacturing process
Ingredients
Endorsements
Comparisons
Pro environment
Price/Quality
Defining Associations
Points-of-difference
Points-of-parity
Attributes or benefits
consumers strongly associate
with a brand, positively
evaluate, and believe they
could not find to the same
extent with a competitive
brand
3. Collect Data
Qualitative research through interviews or focus
groups
Quantitative research to determine scores of
competitive products
33
4. Perceptual Map
A visual technique to show the average target market
consumer s understanding of competing brands and their
associated attributes.
Normally done on two axes which represent the two most
important determinant attributes in consumer purchase
decision
You may superimpose the various segments on the map .
Examine the map for gaps to launch a new brand or
reposition an existing brand
CATEGORY
35
Shoes
Instant coffee
Breakfast cereal
Holiday destination
Camera
36
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Value Propositions
Represent the full positioning of the brand.
Possible value propositions are:
40
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Benefit positioning
o The park for people seeking a fantasy experience
Use/Application positioning
o The park for people who can spend only an hour
User positioning
o The park for thrill seekers
Competitive positioning
o More animals than the Japanese Deer Park
Quality/Price positioning
o Best value for money
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Next Session
Google Case
Deliverables
Chapter 12 with case lets
student
Power point presentation by each group
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