Professional Documents
Culture Documents
Focusing
Marketing Strategy with
Segmentation and
Positioning
Company
S.
W.
O.
T.
Segmentation
& Targeting
Product
Place
Target
Market
Differentiation
& Positioning
Price
Promo
Competitors
Finding Opportunities
Opportunity - when the right circumstances
occur at the right time.
Conduct a S.W.O.T. analysis.
Differentiate to gain a competitive advantage
and seize an opportunity.
Differentiation - means that the marketing mix is
Types of Opportunities
Four Basic Types of Opportunities
Present Products
New Products
Present Markets
Market
Penetration
Product
Development
New Markets
Market
Development
Diversification
Exhibit 3-2
3-4
ler
al
Sm
r
Ea
ly
St
t
ar
3-5
ive
ti t e
pe g
m n ta
Co va
Ad
W
or
ld
n
e
r
T
r
e
t
t
Be
?
s
d
Narrowing down to
specific product-market
All
customer
needs
Some
generic
needs
One
broad
product
market
Segmenting
into possible
target markets
Homogeneous
(narrow)
product
markets
Single
target
market
approach
Multiple
target
market
approach
Combined
target
market
approach
Exhibit 3-3
3-6
Understanding Markets
Generic market - a market with broadly similar needs
and sellers offering various ways to satisfy those
needs. Examples include:
housing
transportation
entertainment
Product market - market with very similar needs and
sellers offering close substitute ways of satisfying
those needs. Examples include:
apartments, condos, duplexes, houses
autos, planes, trains, boats
bowling, theater, sports, miniature golf, etc.
For use only with Perreault and McCarthy texts.
The McGraw-Hill Companies, Inc., 1999
Irwin/McGraw-Hill
Market Segmentation
Market segmentation involves naming broad
product-markets and segmenting these broad
product-markets in order to select target
markets and develop suitable marketing mixes.
This process involves clustering people with
Market Segmentation
Broad product-market (or generic market) name goes here
(The bicycle-riders product-market)
Submarket 1
(Exercisers)
Submarket 2
(Off-road
adventurers)
Submarket 3
(Transportation riders)
Submarket 4
(Socializers)
Submarket 5
(Environmentalists)
Exhibit 3-5
3-8
Market Segmentation
B. Product-market showing
six segments
Status dimension
Status dimension
A. Product-market showing
three segments
Dependability dimension
Dependability dimension
Exhibit 3-6
3-9
Market-Oriented Approaches
A segmenter
The
Strategy
Exhibit 3-7
3-10
Market-Oriented Approaches
A segmenter
Strategy
One
Strategy
Three
Strategy
Two
Exhibit 3-7
3-11
Market-Oriented Approaches
A combiner
The
Strategy
Using combined
target market
approachcan aim
at two or more
submarkets with the
same marketing mix
Exhibit 3-7
3-12
Segmenting Dimensions
Behavioral - examples include:
benefits sought
brand familiarity
kind of shopping
type of problem solving
rate of use
Geographic
region of world, country, region in country
size of city
Positioning
Positioning refers to how customers think
about proposed and or present brands in a
market.
Use the marketing mix to position products in
the market.
Zest
Lever 2000
Dove
Safeguard
Lux
Nondeodorant
Deodorant
Product Space
Lava
Dial
Lifebuoy