Ford Ka Wrap-up XMBA 206.1 Session 3
Key Learning • Products can always be categorized size, performance, colour, features • Categorization by product features is not the same as segmentation • Sometimes categories line-up with segments in the early phase of the evolution of the category. • But not always! • The optimal segmentation of a market can change over time because of two reasons • A new consumer behaviour trend = two-car ownership. • The introduction of a radically new product = Twingo • If there are changes in the market that appear to defy your existing segmentation that’s a signal that it may be obsolete • Check your segmentation regularly
Key Learning • Bases to segment a market • Demographic (Age, Income, Gender). • Behaviour-based (former Twingo buyers, Viagra users/nonusers). • Psychographic or Attitudinal • You need to understand which approach provides segments where • Homogeneity of consumer needs within • Significant heterogeneity across segments. • Even if you choose non-demographic segmentation, you must be able to describe your segments demographically. Why? • To purchase advertising media. • To do targeted promotions.
Key Learning • Successful segmentation requires management of every marketing mix strategy of the firm that has an effect on the customer • Pricing, promotion, advertising. • Your distribution partners need to understand the new approach. • Ford Ka dealers initially did not recognize the change in the consumers who were initially interested in the Ka. • Adopted the old selling tactics which were a misfit for the new segmentation scheme.
Key Learning • Attitudinal segments might be good to develop advertising creative but might be costly in terms of media spending. • Because they might not have distinct demographic profiles. • Ford Ka communication had significant impact because it looked very different from other small car advertising • If looking different is your source of impact, change on a regular basis may be important • Time “dates” the look and the positioning • The product line and packaging can also be used to maintain change and novelty.