cours 4 - segmentation and positioning

The Marketing plan

Segmentation

Market survey

Identifying needs and wants

Choosing a target market(s) ���

Developping a market offering

Measuring outcomes

Product Price Place Promotion

Targeting

Positioning

The marketing plan

1- Marketing studies

Surveying the marketing environment (market and competitors), evaluate effectiveness of the marketing plans

2- Marketing strategy

Defining goals, targets and means to achieve them

3- Marketing tactics

Implementation of the former decisions through the marketing mix

Market Segmentation and Positioning

Why bother to segment markets?

Opportunities and threats

Target market selection

Market segmentation

Tailored marketing mix Differentiation

Identification of individuals or organizations with similar characteristics that have significant implications for the determination of marketing strategy

The process of market segmentation and target marketing

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The disaggregated market

The characteristics of individual customers are understood

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The segmented market

Customers are grouped into segments on the basis of having similar characteristics

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The target market

Segment 3 is judged to be most attractive and a marketing mix strategy is designed for that target market

1 2 3

Marketing mix

targeted at segment 3

Segmenting consumer markets

Consumer segmentation

Behavioural

Benefits sought

Purchase occasion

Purchase behaviour

Usage

Perceptions and beliefs

Lifestyle

Personality

Demographic

Socio-economic

Geographic

Psychographic Profile

Colgate, Aim High self-

involvement hedonistic

Spearmint lovers Children Taste

(good tasting)‏

Aqua-Fresh, Ultra Brite

High sociability, active Smokers Teens, young

adults Cosmetic (bright teeth)‏

Crest Hypochondriacal, conservative Heavy users Large families

Medicinal (decay prevention)‏

Brands on sale

High autonomy, value oriented Heavy users Men Economic

(low price)‏

Brands Favored Psychographics Behavior Demographics Benefit

Segments

Benefit segmentation of the toothpaste market

Canon

Lifestyle segmentation: Duck Head targets a casual student lifestyle, claiming, "You can't get them old until you get them new."

Duck Head

Occasion segmentation: special Thanksgiving and Christmas ads for Reddi-wip during November and December, months that account for 30 percent of all whipped cream sales.

Beatrice Foods

Häagen-Dazs Ice Cream

Häagen-Dazs ice cream smoothies target the ‘indulgence’ segment of the ice cream market.

Macro and micro segmentation of organizational markets

Macrosegment 2 (medium-sized

companies)

Microsegment 2 (prime choice criteria:

convenience)

Macrosegment 3 (small companies)

Microsegment 3 (prime choice criteria:

price)

Macrosegment 1 (large companies)

Microsegment 1 (prime choice criteria:

reliability)

Organizational market

Segmenting organizational markets

Organizational segmentation

Microsegmentation

Decision-making process

Buy class

Purchasing organization

Organizational innovativeness

Organizational size

Industry

Geographic location

Macrosegmentation

Decision-making unit structure

Choice

Michelin

This advertisement explains how Michelin tyres offer better economic value to the customer than its main competitor.

Basic market-preference patterns

Effective segmentation:

  Measurable

  Substantial

  Accessible

  Differentiable

  Actionable

Target marketing

Factors used to assess market attractiveness

Competitive factors

Market factors

Market attractiveness

Political, social and environmental

factors

Market attractiveness

Segment size

Segment growth rate

Segment profitability

Bargaining power of customers

Bargaining power of suppliers

Barriers to market segment entry

Barriers to market segment exit

Market factors Price sensitivity

Market attractiveness

Competitive factors

Nature of competition

New entrants

Competitive differentiation

Market attractiveness

Political issues

Social trends

Environmental issues

Political, social and environmental

factors

Factors used to assess the company’s capability to compete

Cost advantages

Technological edge

Managerial Capabilities and

commitment

Capability to compete

Exploitable marketing assets

Target marketing strategies

  Undifferentiated marketing

  Differentiated marketing

  Focused marketing

  Customized marketing

Target marketing strategies

Marketing mix Whole market

Example of Undifferentiated Strategy: The Post Office

Post Office

• Product • Price • Promotion • Distribution

Everybody

ORGANISATION MARKETING MIX TARGET MARKET

Target marketing strategies

Marketing mix 1 Segment 1

Segment 2

Segment 3

Marketing mix 2

Marketing mix 3

Utilitarian Customer

Trendy- Casual

Price shopper

Mainstream

Tradition- alist

LEVI’s

Marketing Mix 1

Marketing Mix 2

Marketing Mix 3

Marketing Mix 4

Marketing Mix 5

Example of differentiated strategy: LEVI’S

Target marketing strategies

Segment 1

Segment 2

Segment 3

Marketing mix

Example of Focused Strategy: Cement Manufacturer

• Product • Price • Promotion • Distribution

Cement Manufacturer

Builders Merchants

Independent Shops

National Chains

ORGANISATION MARKETING MIX

Concentrated marketing: has found its niche as the world's largest producer of airport rescue trucks and front-loading concrete mixers.

Oshkosh Truck

Target marketing strategies

Marketing mix 1 Customer 1

Customer 2

Customer 3

Marketing mix 2

Marketing mix 3

Example of Customized Strategy

Marketing Mix 1

Marketing Mix 2

Marketing Mix 3

Marketing Mix 4

Nissan

Birdseye

Heinz

Levis

Industrial Electronic Systems Supplier

INDIVIDUAL MIXES

ORGANISATION INDIVIDUAL CUSTOMERS

Customize your M&M's with

mymms.fr

Key tasks in positioning

1. Market segmentation

2. Target market

3. Differentiated advantage

Positioning

Where and how we compete?

Defining positioning

Defining the dimensions of positioning

Who ? Which target market?

What ? What are the consumer

benefits ?

When ? Usage situation

Against who ? Who are the direct

competitors ?

Kapferer’s diamond

Who?

Against who?

What ?

When ?

Using advertising to reposition White Horse Whisky

A traditional Scottish whisky

Old whisky drinkers in their 50's

  Drink on the rock   Mix with water, ginger ale or orange juice

  Scottish whisky brands   Foreign whisky brands   White spirits   Wine and lagers   Own-label

  A smooth and distinctive taste   Contains 40% malts from Lagavulin Distillery   Traditional manufacturing process

Keys to successful positioning

Clarity

“BMW, the Ultimate Driving Machine”

Consistency

Credibility

“Smirnoff Ice – as clear as your conscience”

Competitiveness

Successful positioning

Landrover

This award-winning advertisement for the Land Rover Defender clearly positions the brand as a rugged off-roader: you cannot get more off-road than the margins of an angry sea.

10-40

A c r e d i b l e a n d competitive differential advantage provides a clear benefit valued by customers !

Possible value propositions

More for more: Mecedes-Benz, Mont-Blanc, Ritz-Carlton hotels;

More for the same: Toyota Lexus;

More for less: Dell, P&G;

The same for less: Amazon.com, Dell

Less for much less: EasyJet

Competitive advantages: posit ions powerful ly on safety: All most people want from a car seat is "a nice, comfy place to put your gluteus maximus." However, when a Volvo is struck from behind, a sophisticated system "guides the front seats through an intricate choreography that supports the neck and spine, while helping to reduce dangerous collision impact forces."

Volvo

Bacardi Breezer

Unilever positioned its best-selling Lever 2000 soap on t h r e e b e n e f i t s i n o n e : cleansing, deodorizing, and moisturizing benefits. It's good "for all your 2000 parts."

Unilever

A perceptual map of supermarkets

A

B

C

D

G

E F

High price

Low price

Narrow product range

Wide product range

A perceptual map of supermarkets

A

B

C

D

X

G

E F

High price

Low price

Narrow product range

Wide product range

Perceptual map – A Gap for Sprite?

Non-Coke

Non-Diet

Diet

Coke

Repositioning strategies

Image repositioning

Product repositioning

Intangible repositioning

Tangible repositioning

Same Different

Same

Different

Target market

Product

From 'the real American hamburger' to...

A piece of America at a reasonable price

 Families  Children 13-15 years

old

  Anywhere at anytime   Clean and convenient location   Take in or take away

Other fast food services

  Tasty hamburgers friendly priced   American image   Fast-service meal

... healthier eating ! It's what I eat and what I do... I'm lovin'it

Healthier food at a reasonable price

Young adults

  Anywhere at anytime  Clean, convenient and environmental friendly location   Take in or take away

Other fast food services

  Healthier eating options   Fast-service meal   Tasty hamburgers