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Types of Markets
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Requirements of a Markets
Need
+ Ability
Willingness
Authority
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Why segment?
Most Most
efficient effective
Many Groups
of One
One Mass
Market
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Responsiveness
Accessibility
Measurability /
Identifiability
Substantiality
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Geography
Demographics
Psychographics
Benefits Sought
Usage Rate
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Geographic Segmentation
Demographic Segmentation
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Age
Marital
Children
Status
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Segmenting by
Income and Expenditure Patterns
o Engel’s laws
o As household income increases:
o A smaller percentage of expenditures goes for
food
oThe percentage spent on housing, household
operations, and clothing remains constant
oThe percentage spent on recreational and
educational items increases
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Psychographic Segmentation
Resellers
Government
Institutions
Company Buying
Characteristics Processes
CHAPTER 9 Market Segmentation, Targeting, and Positioning
1 2 3 4 5 6
Select Choose Select Profile Select Design,
a market bases descriptors and target implement,
for for analyze markets maintain
study segmen- segments marketing
tation mix
Note that steps 5 and 6 are actually marketing activities that follow market segmentation (steps 1 through 4).
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Product-Related Segmentation
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Targeting
o Undifferentiated marketing
o Strategy that focuses on producing a single product and
marketing it to all customers; also called mass
marketing
o Differentiated marketing
o Strategy that focuses on producing several products and
pricing, promoting, and distributing them with different
marketing mixes designed to satisfy smaller segments
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Undifferentiated Strategy
Single
Marketing
Mix
Organization
Target Market
Differentiated Strategy
Marketing Mix 1
Marketing Mix 2
Organization
Target Market
Concentrated Strategy
Single
Marketing
Mix
Organization
Target Market
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Cannibalization
Cannibalization
One-to-One Marketing
Concentrated Marketing
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Product Positioning
Positioning
Copyright © 2012 by South Western, a division of Cengage Learning. All rights reserved.
Positioning of
Procter & Gamble
Detergents
Market
Brand Positioning
Share
Tide Tough, powerful cleaning 31.1%
Cheer Tough cleaning, color protection 8.2%
Bold Detergent plus fabric softener 2.9%
Gain Sunshine scent and odor-removing formula 2.6%
Era Stain treatment and stain removal 2.2%
Dash Value brand 1.8%
Oxydol Bleach-boosted formula, whitening 1.4%
Solo Detergent and fabric softener in liquid form 1.2%
Dreft Outstanding cleaning for baby clothes, safe 1.0%
LO9
Ivory Snow Fabric & skin safety on baby clothes 0.7%
Ariel Tough cleaner, aimed at Hispanic market 0.1%
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Perceptual Mapping
Sporty Conservative
Inexpensive
Product Positioning using perceptual maps
High moisturizing
Zest
Tone 7
4
Lever 2000
Dove
5 2
Safeguard
Coast
Lux 8
Nondeodorant 3 Deodorant
1
Dial
Lifebuoy
Lava
6
Low moisturizing
CHAPTER 9 Market Segmentation, Targeting, and Positioning
Repositioning
Changing consumers’
perceptions of a brand in relation
to competing brands.
CHAPTER 9 Market Segmentation, Targeting, and Positioning