fundamentals of market driven strategy and its customization

7/21/2019 Fundamentals of Market Driven Strategy and Its Customization

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BYRAJA. MAZHAR HAMEED

Fundamentals of MarketDriven Strategy and its

ustomi!ation


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Learning Objectives". De#ne t$e t$ree ste%s of target marketing&

market segmentation' target marketing' andmarket %ositioning

(. )ist and dis*uss t$e ma+or ,ases forsegmenting *onsumer and ,usiness markets

-. E%lain $o/ *om%anies identify attra*tive*onsumer and ,usiness markets

0. Dis*uss $o/ *om%anies %osition t$eir%rodu*ts for maimum *om%etitiveadvantage in t$e market%la*e


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Concepts:

1. Market Segmentation

2. Marketing Target

3. Diferentiation and ositioning

!. ositioning "or Competitive

#dvantage


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Market Segmentation

". Dis*uss t$e need to understand

*om%etitors as /ell as *ustomerst$roug$ *om%etitor analysis

(. E%lain t$e fundamentals of *om%etitivemarketing strategies ,ased on *reatingvalue for *ustomers

-. Demonstrate t$e need for ,alan*ing*ustomer and *om%etitor orientations in,e*oming a truly market1*enteredorgani!ation


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Market Segmentation

Market segmentationis t$e %ro*ess

t$at *om%anies use to divide large$eterogeneous markets into smallmarkets t$at *an ,e rea*$ed moree2*iently and e3e*tively /it$ %rodu*tsand servi*es t$at mat*$ t$eir uni4ueneeds


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Market Segmentation

5 Segmenting *onsumer markets

5 Segmenting ,usiness markets

5 Segmenting international markets

5

Re4uirements for e3e*tivesegmentation


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Market Segmentation

Segmenting Consumer Markets

5 6eogra%$i*5 Demogra%$i*

5 7sy*$ogra%$i*

5 Be$avioral


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Market SegmentationSegmenting Consumer Markets

$eograp%ic segmentationdivides t$emarket into di3erent geogra%$i*alunits su*$ as nations' regions' states'*ounties' or *ities


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Demograp%ic segmentationdividest$e market into grou%s ,ased onvaria,les su*$ as age' gender' familysi!e' family life *y*le' in*ome'o**u%ation' edu*ation' religion' ra*e'generation' and nationality


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Demograp%ic segmentationis t$emost %o%ular segmentation met$od,e*ause *onsumer needs' /ants' andusage often vary *losely /it$demogra%$i* varia,les and are easierto measure t$an ot$er ty%es ofvaria,les


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#ge and &i"e'c(c&e stagesegmentationis t$e %ro*ess of o3ering di3erent%rodu*ts or using di3erent marketinga%%roa*$es for di3erent age and life1*y*le grou%s

$ender segmentationdivides t$e market,ased on se 8male or female9


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Market Segmentation

)ncome segmentation divides t$emarket into a:uent or lo/1in*ome*onsumers



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Market Segmentation

s(c%ograp%ic segmentationdivides ,uyers into di3erent grou%s,ased on so*ial *lass' lifestyle' or%ersonality traits



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*e%aviora& segmentation divides ,uyersinto grou%s ,ased on t$eir kno/ledge'attitudes' uses' or res%onses to a%rodu*t

5 ;**asion

5 Bene#ts soug$t5


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Occasionsegmentationdivides ,uyers intogrou%s a**ording to o**asions /$en t$eyget t$e idea to ,uy' a*tually make%ur*$ases' or res%ond to a %rodu*t

*ene+tsegmentationre4uires #nding t$ema+or ,ene#ts %eo%le look for in t$e%rodu*t *lass' t$e kinds of %eo%le /$o lookfor ea*$ ,ene#t' and t$e ma+or ,rands t$atdeliver ea*$ ,ene#t


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,ser stat-s divides ,uyers into e1users'%otential users' #rst1time users' and regularusers of a %rodu*t

,sage rate divides ,uyers into lig$t' medium'

and $eavy %rodu*t users

Lo(a&t( stat-sdivides ,uyers into grou%sa**ording to t$eir degree of loyalty


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Market Segmentation

Lo(a&t( stat-sdivides ,uyers intogrou%s a**ording to t$eir degree ofloyalty



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Market Segmentation

Using Multiple Segmentation Bases

M-&tip&e segmentationis used toidentify smaller' ,etter1de#nedtarget grou%s

$eodemograp%icsegmentationis

an eam%le of multivaria,lesegmentation t$at divides grou%sinto *onsumer lifestyle %atterns


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Market Segmentation

5 Age5 Edu*ational level5 =n*ome5 ;**u%ation5

Family *om%osition

>1(?

5

Et$ni*ity5 Housing

5 Be$avioral andlifestyle fa*tors

5 7ur*$ases5 Free1time a*tivities

5 Media %referen*es

Using Multiple Segmentation Bases

Prizm classifications include


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Market Segmentation

Segmenting Business Markets

=n addition to t$e same segmentationvaria,les as *onsumers' ,usiness *analso ,e segmented ,y&

5 ustomer1o%erating *$ara*teristi*s5 7ur*$asing a%%roa*$es5 Situational fa*tors5 7ersonal *$ara*teristi*s


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Market Segmentation


Segmenting international markets5 6eogra%$i* lo*ation

5 E*onomi* fa*tors

5 7oliti*al and legal fa*tors5 ultural fa*tors


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Market Segmentation

)ntermarket segmentationdivides

*onsumers into grou%s /it$ similarneeds and ,uying ,e$aviors event$oug$ t$ey are lo*ated in di3erent*ountries



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Market Segmentation

Requirements for Effective Segmentation

@o ,e useful' a market segment must ,e&5 Measura,le

5 A**essi,le

5 Su,stantial5 Di3erentia,le

5 A*tiona,le


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Market Segmentation


Meas-rab&eeam%les in*lude t$e si!e'%ur*$asing %o/er' and %ro#les of t$esegments

#ccessib&erefers to t$e fa*t t$at t$emarket *an ,e e3e*tively rea*$ed andserved


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Market Segmentation


S-bstantia&refers to t$e fa*t t$at t$emarkets are large and %ro#ta,le enoug$to serve

Diferentiab&erefers to t$e fa*t t$at t$emarkets are *on*e%tually distinguis$a,leand res%ond di3erently to marketing mielements and %rograms


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Market Segmentation


#ctionab&erefers to t$e fa*t t$ate3e*tive %rograms *an ,e designed forattra*ting and serving t$e segments


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Market Targeting

Evaluating Market Segments

5 Segment si!e and gro/t$5 Segment stru*tural attra*tiveness

5 om%any o,+e*tives and resour*es


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Market Targeting


5 Segment si!e and gro/t$5 Smaller versus larger segments

5 6ro/t$ %otential


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Market Targeting


5 Segment stru*tural attra*tiveness5 om%etition5 Su,stitute %rodu*ts5 7o/er of ,uyers

5 7o/er of su%%liers


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Market Targeting


5 om%any o,+e*tives and resour*es5 om%etitive advantage

5 Availa,ility of resour*es

5 onsistent /it$ *om%any o,+e*tives


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Market Targeting

Selecting Target Market Segments

5


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Market Targeting

Target Marketing Strategies

,ndiferentiated marketingtargets t$e/$ole market /it$ one o3er

5 Mass marketing

5 Fo*uses on *ommon needs rat$er t$an/$ats di3erent


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Market Targeting


Diferentiated marketingtargetsseveral di3erent market segments anddesigns se%arate o3ers for ea*$

5 6oal is to a*$ieve $ig$er sales andstronger %osition

5 More e%ensive t$an undi3erentiatedmarketing


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Market Targeting


Concentrated marketingtargets asmall s$are of a large market

5 )imited *om%any resour*es

5 no/ledge of t$e market

5 More e3e*tive and e2*ient


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Market Targeting


Micromarketingis t$e %ra*ti*e oftailoring %rodu*ts and marketing%rograms to suit t$e tastes of s%e*i#*individuals and lo*ations

5 )o*al marketing

5 =ndividual marketing


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Market Targeting


Loca& marketinginvolves tailoring,rands and %romotion to t$e needsand /ants of lo*al *ustomer grou%s

5 ities5 Ceig$,or$oods5 Stores


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Market Targeting


)o*al Marketing5 Bene#ts&

5 =n*reased marketing e3e*tiveness in

*om%etitive markets5 More *ustomer1s%e*i#* o3erings


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Market Targeting


)o*al marketing5 $allenges&

5 =n*reased manufa*turing and marketing*osts

5 )ess e*onomy of s*ale

5 )ogisti*s

5 Dilution of *om%any image


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Marketing Targeting

)ndivid-a& marketinginvolvestailoring %rodu*ts and marketing%rograms to t$e needs and%referen*es of individual *ustomers

5 Also kno/n as&5 ;ne1to1one marketing5 Mass *ustomi!ation5 Markets1of1one marketing



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Market Targeting


Mass c-stomiationis t$e %ro*ess t$roug$/$i*$ #rms intera*t one1to1one /it$ massesof *ustomers to design %rodu*ts and servi*estailor1made to meet individual needs. Hasmade relations$i%s /it$ *ustomers im%ortantin t$e ne/ e*onomy.

5 7rovides a /ay to distinguis$ t$e *om%anyagainst *om%etitors


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Market Targeting

Choosing a Targeting Strateg

De%ends on&

5 om%any resour*es5 7rodu*t varia,ility

5 7rodu*t life1*y*le stage

5 Market varia,ility5 om%etitors marketing strategies


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Market Targeting

Sociall Responsi!le Target Marketing

Bene#ts *ustomers /it$ s%e*i#* needson*ern for vulnera,le segments

5 $ildren

5 Al*o$ol5 igarettes


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Diferentiation and ositioning

rod-ct positionis t$e /ay t$e %rodu*t

is de#ned ,y *onsumers on im%ortantattri,utest$e %la*e t$e %rodu*to**u%ies in *onsumers minds relativeto *om%eting %rodu*ts

5 7er*e%tions5 =m%ressions

5 Feelings


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ositioning maps s$o/ *onsumer

%er*e%tions of t$eir ,rands versus*om%eting %rodu*ts on im%ortant,uying dimensions

5 7ri*e and orientation


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Choosing a "ifferentiation and Positioning Strateg

5 =dentifying a set of %ossi,le *om%etitiveadvantages to ,uild a %osition

5 $oosing t$e rig$t *om%etitiveadvantages

5 Sele*ting an overall %ositioning strategy


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Choosing a "ifferentiation and Positioning Strateg

=dentifying a set of %ossi,le *om%etitiveadvantages to ,uild a %osition ,y %rovidingsu%erior value from&

5 7rodu*t di3erentiation5 Servi*e di3erentiation

5 $annels5 7eo%le5 =mage


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#dentifing Possi!le $alue "ifferences and

Competitive %dvantage

Competitive #dvantage is t$e advantage over*om%etitors gained ,y o3ering greater valueeit$er t$roug$ lo/er %ri*es or ,y %rovidingmore ,ene#ts t$at +ustify $ig$er %ri*es


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Choosing the Right Competitive %dvantages

A di3eren*e is /ort$ esta,lis$ing to t$e etent

t$at it satis#es t$e follo/ing *riteria& =m%ortant Distin*tive Su%erior

ommuni*a,le 7reem%tive A3orda,le


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Selecting an &verall Strateg

/a&-e propositionis t$e full mi of ,ene#tsu%on /$i*$ a ,rand is %ositioned5 More for more5 More for t$e same5

Same for less5 )ess for mu*$ less5 More for less


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ositioning "or Competitive#dvantage

"eveloping a Positioning Statement

ositioning statement

states t$e%rodu*ts mem,ers$i% in a *ategoryand t$en s$o/s its %oint1of1di3eren*efrom ot$er mem,ers of t$e *ategory.

fundamentals of market driven strategy and its customization

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