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Marketing
BMEGT20MW01
Department of Management and Corporate
Economics, building Q, room B 303b
email: [email protected]
Gyorgyi Dano
Lecturer: Gyorgyi Dano
Marketing 04
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• Market Segmentation
• Market Targeting
• Differentiation
• Positioning
Györgyi Danó
Steps of designing a customer-driven
marketing strategy
Designing a customer-driven
marketing strategy
Select customer to serve
Decide on a value proposition
Segmentation
Divide the total market into
smaller segments
Differentiation
Differentiate the market offering
to create superior customer value
Create
value for
targeted
customer
Positioning
Position the market offering in the
minds of target customers
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How will we serve
them?
Which customers
will we serve?
Targeting
Select the segment or
segments to enter
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Market segmentation
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Dividing a market into smaller segments
with distinct needs, characteristics, or
behavior that might require separate
products or marketing mixes.
Bases for segmenting consumer
markets
nations, regions,
states, counties,
cities, etc.
Demographic
segmentation
age, gender, generation, family size, family life
cycle, income, occupation, education, religion,
race, and nationality, etc.
Psychographic
segmentation
Behavioral
segmentation
social class, values,
lifestyles, personality
knowledge, attitudes, uses, or responses to a
product (occasions, benefits sought, user
status, usage rate, loyalty status)
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Geographic
segmentation
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Marketers rarely limit their segmentation
analysis to only one or a few variables.
Rather, they often use multiple
segmentation bases in an effort to
identify smaller, better defined target
groups.
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Multiple Segmentation
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Segmenting Business Markets
Additional variables include:
• Customer operating characteristics
• Purchasing approaches
• Situational factors
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Consumer and business marketers use many of
the same variables to segment their markets.
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Indonesia, Nigeria, India …
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Geographic segmentation
whole of Asia
Southern Europe
continental Europe &
North America
UK
Nordic countries
People in northern
regions prefer
warm white light
colors, whereas
people in the south
prefer colder light.
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http://www.lamptech.co.uk/Documents/FL%20Colours.htm
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https://www.youtube.com/watch?v=ymIVR5JlSQU
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Demographic segmentation
https://www.youtube.com/watch?v=q6iho8w7u5Q
https://www.youtube.com/watch?v=WNmXaazGk5k
https://www.youtube.com/watch?v=laEWNrwEdlo
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Gender
and age
Asiana „Happy Mom” and „PreMom*” service
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Family
life
cycle
- exclusive check-in counter, free breast feeding nursing
covers, baby slings, car seat-like baby seats in the air
- exclusive check-in counter, electric cart service: transport
to the departure gate, priority boarding, front row seat,
sleeping socks, special priority tag (checked luggage)
http://www.airlinetrends.com/2009/10/26/asiana-happy-mom-service/
http://www.airlinetrends.com/2010/11/04/asiana-premom-service/
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*„babymoons”
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Zipcar for University
https://www.youtube.com/watch?v=UMSKunr6ty4
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Occupation
Psychographic segmentation
• green
• convenient,
hassle free
• save money
“It’s not about cars, it’s
about urban life.”
https://www.youtube.com/watch?v=ONPj2liqdmo
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Urban lifestyle
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Clubbing holiday for „Party Animals”
We are Party Hard Travel - the only online travel
agency where you can book everything you
need for the ultimate clubbing holiday!
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Personality
• 76 percent of travelers prefer
to keep to themselves while
in-flight
• only 9 percent expressed
interest in trying a "social
seating" program that allows
fliers to choose a seatmate
based on social network
profiles
• 40 percent would pay extra
to sit in a designated
"quiet" section of the plane
Personality
http://www.airlinetrends.com/2013/09/05/long-haul-low-cost-carrierscoot-takes-a-cue-from-airasia-x-with-new-quiet-zone/
http://www.airlinetrends.com/2012/09/02/airasiax-kids-free-quiet-zone/
http://www.tripadvisor.com/PressCenter-i5162-c1-Press_Releases.html
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„Anti-social in the Air”
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Behavioral segmentation
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Occasions
Coca-Cola’s “Good Morning”
campaign attempts to increase
Diet Coke consumption by
promoting the soft drink as an
early morning pick-me-up.
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Occasions refer to when
consumers get the idea to buy,
actually make their purchase, or
use the purchased item.
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http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/investors/presentations/easyjet_gb_airways_acquisition_update.pdf
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Uses
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Uses
http://www.lamptech.co.uk/Documents/FL%20Colours.htm
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typical applications
for different color
temperatures
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Benefits Sought
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Measurable: The size, purchasing power, and profiles of the
segments can be measured.
Accessible: The market segments can be effectively reached and
served.
Substantial: The market segments are large or profitable enough to
serve.
Differentiable: The segments are conceptually distinguishable and
respond differently to different marketing mix elements and
programs.
If men and women respond similarly to marketing efforts for soft
drinks, they do not constitute separate segments.
Actionable: Effective programs can be designed for attracting and
serving the segments.
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Effectiveness of the Segmentation
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Market Targeting
A company should only enter segments in which
it can create superior customer value and gain
advantages over its competitors.
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Target market consists of a set of
buyers who shares common needs or
characteristics that the company
decides to serve.
• Segment size and growth
• Segment structural
attractiveness
• Company objectives and
resources
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Evaluating Market Segments
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•
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Selecting segments that have the right size and growth
characteristics is a relative matter. The largest, fastest-growing
segments are not always the most attractive ones for every company.
Smaller companies may target segments that are smaller and less
attractive, in an absolute sense, but that are potentially more profitable for
them.
Structural factors that affect long-run segment attractiveness include
strong and aggressive competitors, new entrants, substitute products,
power of buyers relative to sellers, and powerful suppliers who can
control prices, quality, or quantity of ordered goods and services.
Some attractive segments can be dismissed quickly because they do
not mesh with the company’s long-run objectives. Or the company may
lack the skills and resources needed to succeed in an attractive
segment.
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Evaluating Market Segments
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Target Marketing Strategies
Targeting
narrowly
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Targeting
broadly
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Company
marketing
mix
Market
Model T Ford, „one size fits all”
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Undifferentiated marketing targets the whole
market with one offer.
• mass marketing (using the same marketing mix
for all consumers)
• focuses on common needs rather than what’s
different
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Company
marketing mix 1
Company
marketing mix 2
Company
marketing mix 3
Segment 1
Segment 2
Segment 3
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Differentiated marketing targets several different
market segments and designs separate offers for
each.
• goal is to achieve higher sales and stronger
position
• more expensive than undifferentiated marketing
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Concentrated marketing (or niche marketing)
targets a small share of a large market.
• limited company resources
• knowledge of the market
• more effective and efficient
Segment 1
Segment 2
Segment 3
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Company
marketing
mix
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Micromarketing is the practice of tailoring
products and marketing programs to suit the tastes
of specific individuals and locations.
Local marketing involves tailoring brands and
promotion to the needs and wants of local
customer groups. (cities, neighborhoods, stores)
Individual marketing involves tailoring products
and marketing programs to the needs and
preferences of individual customers.
Also known as: one-to-one marketing, mass
customization, markets-of-one marketing.
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http://www.porsche.com/uk/modelstart/
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https://goo.gl/HmxrWL
Differentiation and Positioning
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• Perceptions
• Impressions
• Feelings
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Product position is the way the
product is defined by consumers on
important attributes - the place the
product occupies in consumers’ minds
relative to competing products.
Copyright © 2016 Pearson Education, Inc.
IKEA does more than just sell affordable home
furnishings; it’s the “Life improvement store.”
Products are made in factories, but brands
happen in the minds of consumers.
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• Identifying a set of possible
competitive advantages to build a
position
• Choosing the right competitive
advantages
• Selecting an overall positioning
strategy
• Communicating and delivering the
chosen position to the market
Product
Services
Channels
People
Image
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Choosing a Differentiation and
Positioning Strategy
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Through product differentiation, brands can be differentiated on features,
performance, or style and design., Subway differentiates itself as the healthy
fast-food choice.
Some companies gain services differentiation through speedy, convenient, or
careful delivery. For example, First Convenience Bank of Texas offers “Real
Hours for Real People.” It is open seven days a week, including evenings.
Firms that practice channel differentiation gain competitive advantage through
the way they design their channel’s coverage, expertise, and performance.
Amazon.com for example, set themselves apart with their smooth-functioning
direct channels.
Companies can also gain a strong competitive advantage through people
differentiation - hiring and training better people than their competitors do.
Even when competing offers look the same, buyers may perceive a difference
based on company or brand image differentiation. The chosen symbols,
characters, and other image elements a brand chooses must be communicated
through advertising that conveys the company’s or brand’s personality.
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Navigator - local neighborhood
experts
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„Every Renaissance hotel has a Navigator available
to our guests. They’re passionate about their
neighborhood and passionate about connecting you
to local experiences that will stay with you long after
you’ve left.”
http://renaissance-hotels.marriott.com/navigators
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We’re a hotel for the curious, the adventurous, for
those who see every journey as a chance to be
inspired by the unexpected, intriguing and the new.
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
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Choosing the Right Competitive
Advantage
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Value Proposition
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The brand’s full positioning is called
its value proposition - the full mix of
benefits on which the brand is
positioned.
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Copyright © 2016 Pearson Education, Inc.
Possible Value Propositions
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Gyorgyi Dano
More for more: This positioning involves providing the most upscale product or
service and charging a higher price to cover the higher costs. Although more for
more can be profitable, this strategy can also be vulnerable. It often invites imitators
who claim the same quality but at a lower price.
More for the same: Companies can attack a competitor’s more for more positioning
by introducing a brand offering comparable quality at a lower price. For example,
Toyota introduced its Lexus line with a more for the same value proposition versus
Mercedes and BMW.
The same for less: Offering the same for less can be a powerful value proposition everyone likes a good deal. Discount stores such as Walmart use this positioning.
Less for much less: A market almost always exists for products that offer less and
therefore cost less. Few people need, want, or can afford “the very best” in
everything they buy. In many cases, consumers will gladly settle for less than optimal
performance or give up some of the bells and whistles in exchange for a lower price.
More for less: Of course, the winning value proposition would be to offer more for
less. Many companies claim to do this. And, in the short run, some companies can
actually achieve such lofty positions. Offering more usually costs more, making it
difficult to deliver on the “for less” promise in the long run.
நன்றி
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