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Segmentation, Targeting, and Positioning. Global Marketing Chapter 7. Market Segmentation. Represents an effort to identify and categorize groups of customers and countries according to common characteristics. Targeting.

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market segmentation
Market Segmentation
  • Represents an effort to identify and categorize groups of customers and countries according to common characteristics
targeting
Targeting
  • The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond
  • Focus on the segments that can be reached most effectively, efficiently, and profitably
positioning
Positioning
  • Positioning is required to differentiate the product or brand in the minds of the target market.
global market segmentation
Global Market Segmentation
  • Defined as the process of identifying specific segments—whether they be country groups or individual consumer groups—of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix.
contrasting views of global segmentation
Conventional Wisdom

Assumes heterogeneity between countries

Assumes homogeneity within a country

Focuses on macro level of cultural differences

Relies on clustering of national markets

Less emphasis on within-country segments

Unconventional Wisdom

Assumes emergence of segments that transcend national boundaries

Recognizes existence of within-country differences

Emphasizes micro-level differences

Segments micro markets within and between countries

Contrasting Views of Global Segmentation
global market segmentation1
Global Market Segmentation
  • Demographics
  • Psychographics
  • Behavioral characteristics
  • Benefits sought

Skiing became a sport in Norway where it was invented 4,000 years ago.

demographic segmentation
Income

Population

Age distribution

Gender

Education

Occupation

What are the trends?

Demographic Segmentation
thailand demographic facts
THAILAND-Demographic facts

Nationality: --Thai.


Population (2009 est.): 67.0 million.


Labor force (2009 est.): 38.4 million.


Annual population growth rate (2009 est.): 0.5%.


Ethnic groups: Thai 89%, other 11%.


Religions: Buddhist 93%-94%, Muslim 5%-6%, Christian 1%, Hindu, Brahmin, other.


Languages: Thai (official language) 


Education: Years compulsory--9.

Literacy--94.9% male, 90.5% female.


Life expectancy--70.51 years male, 75.27 years female.

thailand economy
Thailand-Economy

Agriculture (12% of GDP): Products--rice, tapioca, rubber, corn, sugarcane, coconuts, soybeans.

Industry Types--tourism, textiles, garments, agricultural processing, cement, integrated circuits, jewelry, electronics, petrochemical etc.

Merchandise exports--$188.8 billion.

Major markets--ASEAN, EU, China, U.S., Japan, and Hong Kong. Merchandise imports--$175.5 billion.

Major suppliers--Japan, ASEAN, China, the Middle East, EU, and U.S.


psychographic segmentation
Psychographic Segmentation
  • Grouping people according to attitudes, values, and lifestyles

Porsche example from SRI International

    • Top Guns (27%): Ambition, power, control
    • Elitists (24%): Old money, car is just a car
    • Proud Patrons (23%): Car is reward for hard work
    • Bon Vivants (17%): Car is for excitement, adventure
    • Fantasists (9%): Car is form of escape
behavior segmentation
Behavior Segmentation
  • Focus on whether people purchase a product or not, how much, and how often they use it
  • User status
  • Law of disproportionality/Pareto’s Law–80% of a company’s revenues are accounted for by 20% of the customers
benefit segmentation
Benefit Segmentation
  • Benefit segmentation focuses on the value equation
    • Value=Benefits/Price
  • Based on understanding the problem a product solves, the benefit it offers, or the issue it addresses
standardized undifferentiated marketing
Standardized/Undifferentiated Marketing
  • Focus is on common (not different) needs of consumers.
  • Product and marketing program are geared to the largest number of buyers.
  • Uses mass advertising and distribution and aims to give the product a a superior image .
differentiated multi segment marketing
Differentiated/ Multi segment Marketing
  • Firm targets several market segments and designs separate offers for each.
  • The goal is to have higher sales and a stronger position with each market segment.
  • This approach increases the costs of doing business.
concentrated marketing
Concentrated Marketing
  • The focus is acquiring a large share of one or a few segments of niches.
  • Generally, there are fewer competitors.
  • The Internet is ideal for targeting small niche markets.
  • There is some risk in focusing on only one market.
target market strategy options
Concentrated global marketing

Niche marketing

Single segment of global market

Look for global depth rather than national breadth

Ex.: Chanel, Body Shop

Differentiated global marketing

Multi-segment targeting

Two or more distinct markets

Wider market coverage

Ex.: P&G markets Old Spice and Hugo Boss for Men

Target Market Strategy Options
positioning1
Positioning
  • Locating a brand in consumers’ minds over and against competitors in terms of attributes and benefits that the brand does and does not offer
    • Attribute or Benefit
    • Quality and Price
    • Use or User
    • Competition
positioning strategies
Positioning Strategies
  • Global consumer culture positioning
    • Identifies the brand as a symbol of a particular global culture or segment
    • High-touch and high-tech products
  • Foreign consumer culture positioning
    • Associates the brand’s users, use occasions, or product origins with a foreign country or culture

Beer is associated with this German’s culture; the symbol on his shirt is not German!

positioning strategies1
Positioning Strategies
  • Local consumer culture positioning
    • Identifies with local cultural meanings
    • Consumed by local people
    • Locally produced for local people
    • Used frequently for food, personal, and household nondurables
    • Ex.: Budweiser is identified with small-town America
looking ahead to chapter 8
Looking Ahead to Chapter 8
  • Importing, Exporting, and Sourcing