Introduction

Module: Strategic Marketing

Instructor: Bilal Ahmad

LECTURE: Markets and

Competitive
Space

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Learning Outcomes

Level and types of market segmentation

Market driven strategies and segmentation

Activities and decisions in market

segmentation

Defining market to be segmented

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Segmentation

Kotler's definition of market segmentation is

too narrow. Marketing professor Dr. Philip
Kotler defines segmentation as 'the act of
dividing a market into distinct groups of buyers
who might require separate products and/or
marketing mixes.
Segmentation technique example:
http://www.investopedia.com/terms/m/marketsegm
entation.asp
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Segmentation

The process of defining and subdividing a

large homogenous market into clearly
identifiable segments having similar needs, wants,
or demand characteristics. Its objective is
to design a marketing mix that precisely matches
the expectations of customers in the targeted segment.

Read
more: http://www.businessdictionary.com/definition/mar
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ket-segmentation.html#ixzz3ooIjMGl3
Levels and types of market
segmentation
Vision
Strategic Strategic intent
Segmentation Product benefits
Resource allocation
Alignment
Managerial Planning
Segmentation
Marketing programs
Operational - Advertising
Segmentation - Sales
- Distribution

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 OLD NEW
CONSUMER Passively receive Empowered media users
whatever TV control and shape content
networks thanks to TiVo, iPod and
broadcast Internet
ASPIRATIONS To keep up with crowd To standout from the crowd

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 TV CHOICE Three networks Hundreds of channels
plus maybe a plus video on demand
PBS station
MAGAZINES Age of the big Age of the special interest
glossies: Time, magazine for every age
Life, Newsweek and affinity group
ADS Everyone hums Talking to a group of
the Alka-Seltzer one, ads go ever
jingle narrower
BRANDS Rise of the big, Niche brands, product
ubiquitous brands extensions and mass
from Coca-Cola customization mean many
to Tide product variations
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 Strategic market segmentation

Market-driven strategy and segmentation

Market segmentation, value opportunities and new
market space
Market targeting and strategic positioning

Match Value
Value New market opportunities Market Strategic
Segments opportunities space and targeting positioning
capabilities

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 Strategic market segmentation
Activities and decisions in market segmentation

DEFINING THE
IDENTIFY
MARKET TO
MARKET
BE
SEGMENTS
SEGMENTED

SELECTING
THE FORMING
SEGMENTAT MARKET
ION SEGMENTS
STRATEGY

FINER
SEGMENTAT
ION
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STRATEGY
 Class excercise

Defining the market to be segmented

Level of Product Needs/wants

Competitors satisfied
competition definition
Generic Health and ??? ???
Product beauty aids ??? ???
type Shaving ??? ???
variant equipment
Electric
razors

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 Strategic market segmentation

Identifying market segments

Segmentation variables
Characteristics of people and organizations
Consumer markets
Organizational markets
Product use situation segmentation
Buyers needs and preferences
Consumer needs
Attitudes
Perceptions
Purchase behaviour

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 To be continued.. Lecture 4

Case study after the break

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Strategic vision about future

Anticipating the future

Boundaries and composition of Product market
End-user customer base
Market and industry transformation
Potential threats
Value chain composition and structure
Product life cycle phase?

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