STPD
STPD
STPD
Market Targeting
3. Evaluate attractiveness of each segment 4. Select the target segment(s)
Market Positioning
5. Identify possible positioning concepts for each target segment
6. Select, develop, and communicate the chosen positioning concept
Individual Marketing
Tailoring products/ programs to individual customers
Demographic
Age, Gender, Family size and Fife cycle, Race, Occupation, or Income ...
Psychographic
Lifestyle or Personality
Behavioral
Occasions, Benefits, Uses, or Attitudes
Demographics
Situational Factors
Operating Characteristics
Purchasing Approaches
Effective Segmentation
Measurable Substantial Accessible Differential Actionable
Size, purchasing power, profiles of segments can be measured. Segments must be large or profitable enough to serve. Segments can be effectively reached and served. Segments must respond differently to different marketing mix elements & actions. Must be able to attract and serve the segments.
Descriptive Bases
Age Gender Income Occupation Education Family Size or Family Life Cycle Religion or Nationality
Geographic Bases
Region
Density
Climate
Population
Behavioral Bases
User Status & Brand Loyalty Personality/Lifestyle Social Class
Occasion Readiness to Buy Benefits Sought Usage Rate
M1 M2 M3 P1 P2 P1 P2
M1 M2 M3
P1 P2
Selective specialization
Product specialization
M1 M2 M3
P3
P3
Market specialization
P3
Full market coverage
M1 M2 M3 P = Product M = Market P1 P1
M1 M2 M3
P2
P3
P2
P3
Market
Segment 1 Segment 2
Segment 3
C. Concentrated Marketing
designing the companys offering and image to occupy a distinctive place in the the target markets mind. P 298
Product Differentiation
Features Performance Conformance Quality
Form
Quality
Durability
Reliability
Repairability
Style
Design
Services Differentiation
Ordering Ease Customer Consulting
Installation
Miscellaneous Services
Delivery
Customer Training
Image Differentiation
Media Atmosphere
Symbols
Events
Important:-the difference delivers a highly valued benefit to a sufficient number of buyer. Distinctive:-the difference is delivered in a distinctive way. Superior:-the difference is superior to other ways of obtaining the benefit
Preemptive:-the difference cannot be easily copied by competitors. Affordable:-the buyer can afford to pay for the difference. Profitable:- the company will find it profitable to introduce the difference.
Positioning Strategies
Product Attributes Benefits, Problem Solutions & Basic Needs Price & Quality Specific Use Against Other Products Product User Against a Competitor
PRODUCT DIFFERENTIATION
(1)FORM:-the Size,Shape ,Physical structure
for eg.(Aspirin-dosage,size,shape,colour, coating or action time.) (2) FEATURES :-Supplements its basic function calculate customer value VS. CO. cost for each potential features. for eg. ;-Auto Cos.-several trim levels which lowers manufacturing cost and Inventory costs.
(3) PERFORMANCE QUALITY :-Level at which primary characteristics operate.eg;Shlitz driven in it dust when it lowered Q. Q becoming increasingly parameter for differentiation. Catalogues J crow raising prices of merchandise as its raise Q highly.
(4) Conformance quality:- Every Porsche 944 designed to accelerate to 60 mph within 10 second. (C.Q.) (5) Durability :-long lasting-people think more for vehicles & kitchen appliances. (p/cs video cameras must not be exposed to rapid obsolescence )
Reliability:- means that a product will not malfunction. e.g.. -Maytag. (major home appliances.) Style:-100 k & feel e.g.:- car buyers pay high appl. Comp/Mont blanc/H.D.
To be branded, products must be differentiated .Perdue chicken , Bayer aspirin , tata steel , P&G tide , cheer ,gain candy detergents, Otis making elevators smart.
Personnel diff.
Company can gain a strong competitive advantage through having better trained people.eg;-Singapore airlines.
Channel diff.
Company can achieve competitive advantage through the way they design their distribution channel coverage , expertise ,and performance.eg. (caterpillar)
Image diff.
Buyers respond differently to company and brand image.eg.Marlboro-(machocowboy)
DIFFERENTIATION
Process of adding a set of meaningful and valued differences to distinguish companies offerings from competitors offering. For eg.South west airlines .
Differentiations Variables
Product Form Features Performance Conformance Durability Reliability Reparability Services Ordering ease Delivery Installation Customer Training C. Consulting Maintenance Repair Personnel Competence courtesy Credibility Reliability Responsiveness Communication Channel Coverage Expertise Performance
Style
Design
Miscellaneous
Differentiation Strategies
Parameter Product Features Performance Quality Exclusivity Style Product Design Product range & variety Service Quality Packaging Example Cielo car, IFB washing machine, Sony Trinitron TV Dove beauty soap,100 pipers whisky. Tanisque watches,Madura coats, Van Heusen,Louies Philippe. VIP Elanza suitcases, Bentley ties. Revlon cosmetics, Ray ban sunglasses. Citibank, Otis elevators, eureka Forbes vacuum cleaners Sand piper beer
Positioning Strategy
Bases Used
Brand Name
Example
Antiquity Whisky, Monte Carlo Sweaters. orchids Cosmetics Esteem,Cielo Cars, Raymond's Suitings Escorts Yamaha Bikes,Raymondes Suitings Mercedes
Consumer aspiration
Brand Personality
Selective Consumer