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Segmentation. Group Exercise Travel/Business/Leisure Sports Outdoor/Skiing/Mountain Biking New Mothers/New Fathers Gardening/Home Related Recreational Shopping Students/Computers/Movies/Reading . Segmentation & Mkt Targeting.

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segmentation
Segmentation
  • Group Exercise
    • Travel/Business/Leisure
    • Sports
    • Outdoor/Skiing/Mountain Biking
    • New Mothers/New Fathers
    • Gardening/Home Related
    • Recreational Shopping
    • Students/Computers/Movies/Reading
segmentation mkt targeting
Segmentation & Mkt Targeting
  • Market Segmentation is the process by which a market is divided into distinct customer subsets of people with similar needs & characteristics that lead them to respond to a particular product offering and strategic marketing program
targeting
Targeting
  • Evaluating the relative attractiveness of each segment, (size, revenue potential, growth rate), the benefits sought & the firms relative strengths.
  • Positioning is designing product offerings and developing strategic marketing programs that collectively create an enduring competitive advantage in marketplace
rationale
Rationale
  • Market Aggregation Strategy
  • Segmentation Strategy Benefits are opportunity for new product development
  • Strategic allocation of resources
  • Reach homogeneous groups
  • Issue: Finding appropriate scheme to facilitate formulation of successful mkt strats & programs
segmentation5
Segmentation
  • 2 Step Strategy
    • 1. Identify
    • 2. Aggregate into segments
    • Physical Descriptors-General Behavioral-Product Related Behavioral-Needs
    • How might you do this on the web?
    • (bookmarked sites, lifeminders surveys, etc?)
    • Foundation for developing the proper mix of
    • mkt activities including advertising
segmentation issues
Segmentation Issues
  • What should come first?
  • Product Selection? Or Prospect Selection?
  • (do you start with product or do you start
  • with a mkt segment that is desireable?)
  • GLOBAL segmentation, sophisticated markets & communication issues
  • Market Attractiveness
  • Analyzing & Prioritizing Target Mkts
market attractiveness matrix
Mkt Attractiveness Factors

Mkt/Customer

Economic/Tech

Competitive

Environmental

Competitive Position Factors

Mkt Position

Economic/Tech

Capabilities

Interactions

Market Attractiveness Matrix
analyzing prioritizing targets
Analyzing & Prioritizing Targets
  • 1 Selection of Mkt attractivenss & business strength factors choose criteria
  • 2 Weighing each of these factors
  • 3 Rating each segment on these areas
  • 4 Projecting the future position of a mkt
  • 5 Evaluating implications for choosing target mkts and allocating resources
segmentation9
SEGMENTATION
  • CREATE PROFITABLE EXCHANGES
  • to do this on web, must first
  • initiate awareness
  • SHARED CHARACTERISTICS
  • with web quietly assess characteristics/test
  • easier to do subtle queries to find out more
  • without as much expense and time now
segmentation10
SEGMENTATION
  • CONSUMER MARKETS
    • B2C
  • BUSINESS MARKETS
    • -B2B
targeting strategies
Targeting Strategies
  • Mass Market Strategy
  • Niche-Market Strategy
  • Growth Market Strategy
  • International Arena
  • Ethical Issues
  • Exclusion Issues
segmentation12
SEGMENTATION
  • FOOTPRINTS - web (bookmarked sites, subscriptions, cookie trails, purchases)
  • STARS -Simmons Teenage Research Study
  • GVU - Georgia Tech Graphics Visualization Usability Survey 10,000 users
  • Forrester Research Data - web site
  • GVU 38.7% Forrester 43%
  • Home Environment Growth of Internet
segmentation13
Segmentation
  • PROFILE:
  • BEHAVIORISTIC
  • GEOGRAPHIC
  • DEMOGRAPHIC
  • PSYCHOGRAPHIC
segmentation14
Segmentation
  • Behavioristic - Stephan & Tannenholz
  • 1. Sole Users
  • 2. SemiSole
  • 3. Discount Users
  • 4. Aware Nontriers
  • 5. Trial/Rejectors
  • 6. Repertoire Users
segmentation15
SEGMENTATION
  • USAGE RATE VARIABLES:
  • What factors impact usage rate?
  • Q: How might the trend toward pants affect
  • pantyhose sales globally? L’Eggs Data
  • Volume Segmentation -
  • Q: Is it easier to get heavy users to use more or to get nontriers to do trial?
  • Q: How to predict usage via other products?
segmentation16
SEGMENTATION
  • How does the weather impact buying patterns?
  • Purchase occasion variables?
  • Benefits Sought Variables - this is the prime objective of many consumer attitude studies and is the basis for ads.
  • Switching in response to different need states - compare to Maslow hierarchy.
segmentation profile
DEMOGRAPHIC

AGE

GENDER

INCOME

OCCUPATION

ETHNICITY

PSYCHOGRAPHIC

VALUES

ATTITUDES

PERSONALITY

LIFESTYLE

EMOTIONAL

SEGMENTATION PROFILE
segmentation18
SEGMENTATION
  • Cultural Anthropology - Environment can have a powerful impact.
  • China Example - 1% run water/84% TV
  • Hispanic Example - Texas vs LA trends
  • Psychographics may help predict purchase
  • behavior or tendencies because it shows what people feel, believe, how they live
  • web hyperlinks, domain names, search engines, pricing, cross cultural etc.
segmentation19
SEGMENTATION
  • GEOGRAPHIC SEGMENTATION
  • GLOBAL DEVELOPMENTS
  • Cosmopolitanism
  • COMBINING GEOS & PSYCHOS
  • VALS/SRI -Japan, Germany, France, Norway, Italy Y&R - 4 Cs.
  • RISC - 12 European countries
  • Anticipating Change in Europe (ACE)
  • traditionalist, homebody, rationalist, pluralist, striver, trendsetter ---- Istanbul Turkey Update
chicago segmentation21
CHICAGO SEGMENTATION
  • Selection of Target Prospect Groups:
  • Must be large enough market to be profitable - market assessment formulas
  • Estimate potential demand & volume
  • Starbucks/Coffee Beanery Examples
  • Web - may need to have speed, convenience, delivery, but can reach broader geographic range potentially.
4 ps 6ps 7ps
4 Ps…6Ps…7Ps...
  • PRODUCT
  • PRICE
  • PLACE
  • PROMOTION
  • PUBLIC
  • POLICY
  • PROLIFERATION/PACE/TECHNOLOGY
  • (ALSO KNOWN AS IP INFORMATION P
positioning decisions
Positioning Decisions
  • Physical vs Perceptual Product Positioning
  • Physical Positioning Limitations
  • Perceptual Product Positioning
  • How Consumers Perceive Competitive Offerings:
  • Simple physical based attributes
  • Complex physical attributes
  • Abstract attributes
product life cycle
Product Life Cycle
  • Introduction - trendsetters/early adopters
  • innovator stage critical
  • Decline - selective demand/conquest
  • Service
  • Equipment based vs People Based
  • Product
  • Classifications
product differences
Product Differences
  • Perceptible Differences
  • Hidden Differences (not known until use)
  • Induced Differences
brand equity
BRAND EQUITY
  • Individual Brand
  • National Brand
  • Family Brand
  • Private Label Brand
  • WEB Brand (emerging virtual brands)
    • RossRoy/InterOne Plymouth - Chrysler
    • Brand Stewardship - BrandAsset Valuator Matrix - brand stature & vitality/personality
brand equity28
Brand Equity
  • Packaging - containment/protection/convenience/appeal
  • Identification -
  • web becomes validator for brand
  • web is also way to have universal brand price information, knowledge, comparison
  • Price, Quantity = demand, supply, sales
positioning process
Positioning Process
  • 1 Identify relevant product brand set
  • 2 Set of determinant attributes/product space
  • 3 Collect information from sample customers
  • 4 Analyze intensity of a product’s current position in customer’s minds
  • 5 Determine product’s current location/position
  • 6 Determine customer’s most preferred combo
  • 7 Examine fit btw preferences of mkt segments
  • 8 Select positioning or repositioning strategy
perceptual mapping exercise
Expensive

Slow

-------------------------------

Inexpensive

Quick

-------------------------------

Perceptual Mapping Exercise
market position strategies
Market Position Strategies
  • Monosegment Positioning
  • Multisegment Positioning
  • Standby Positioning
  • Imitative (copy cat) Positioning
  • Anticipatory Positioning (proactive/offensive/pre-emptive)
  • Adaptive Positioning (evolutionary)
  • Defensive Positioning
lifestyle data cluster www siterreports com
Profile Behavior

Listens classical radio

3 Foreign Trips/3 yrs

Attended live theatre

Drinks imported wine

Visited Museum

Uses Gold AMEX card

Uses Dry Cleaner

% Microvision Index

21.5 750

22.9 483

47.2 345

29.6 350

45.8 334

36.6 710

26.5 481

Nat ave index = 100

Lifestyle Data ClusterWWW.SITERREPORTS.COM
microvision groups
MicroVision Groups
  • MVG01 - Accumulated Wealth
  • MVG02 - Mainstream Families
  • MVG03 - Young Accumulators
  • MVG04 - Mainstream Singles
  • MVG05 - Asset Building Families
  • MVG06 - Conservative Classics
  • MVG07 - Cautious Couples
  • MVG08 -Sustaining Families
  • MVG09 - Sustaining Singles
  • MVG10 - Anomalies
  • MVG11 - Unclassified
  • WHO ARE THEY MISSING AND WHAT DO YOU THINK OF MVG10 & 11?
ivals internet psychographics http future sri com
IVALS INTERNET PSYCHOGRAPHICShttp://future.sri.com
  • Affinity Mapping Software
  • 10 Profile Segments:
  • WIZARDS SURFERS
  • PIONEERS IMMIGRANTS
  • UPSTREAMERS SOCIABLES
  • SOCIALITES SEEKERS
  • WORKERS MAINSTREAMERS
  • WHICH GROUP CONTAINS THE POWER USERS?
  • WHICH GROUP SEES THE INTERNET AS A TOOL?
click stream analysis www alexa com
CLICK-STREAM ANALYSISwww.alexa.com
  • A NEW MODEL OF ADVERTISING VIEWERSHIP
  • NOVAK & HOFFMAN OF VANDERBILT UNIV
  • similar to eye tracking studies, but applied to how one navigates through electronic ads and online navigation process
  • http://www200.ogsm.vanderbilt.edu/papers/clickstream/clickstream.html
  • This would be good as a paper option!
market demand
MARKET DEMAND
  • DEMAND VARIABLES Nielsen Knowledge Vault - product sales & factors
  • Product & Distribution Costs
  • Competition
  • Corporate Obj & Strats
  • Variable Influences
  • Research - www.forrester.com, www.demographics.com, www.census.gov
software
SOFTWARE
  • AC NIELSEN KNOWLEDGE VAULT
  • TEAMS - Total Evaluation Analysis Sales
  • SPSS - DIA Study
  • Arbitron
  • Knowledge Seeker
  • Proprietary forecasting programs
segmentation38
Segmentation
  • Distribution Issues - B-B, alternative channels, place issues
  • Place, direct, network, multilevel, indirect
  • Input/Output web based
  • push/pull selective, distribution, co-op, excl
  • VMS - Franchising McD.s, Mailboxes
segmentation39
SEGMENTATION
  • EMOTIONAL FACTORS THAT MOTIVATE CONSUMERS:
  • Theoretical underpinnings…
  • Business Industrial Markets - purchasing depts & buyers, some of this may carry over
  • Business Markets - segment by end user, by channels, primary demand trends, 2 step
  • wholesaler WD channels have diff needs