LectureSixMarketingsegmentation,targeting,andpositioningforcompetitiveadvantageAtaglanceListanddiscussthemajorlevelsofmarketsegmentationandbasesforsegmentingconsumerandbusinessmarketsExplainhowcompaniesidentifyattractivemarketsegmentsandchooseamarket-coveragestrategyDiscusshowcompaniescanpositiontheirproductsformaximumcompetitiveadvantageinthemarketplaceStagesinMarketOrientationMassMarketingProduct-VarietyMarketingTargetMarketing1.IdentifyBasesforSegmentation2.DevelopProfilesofSegments3.DevelopMeasuresofAttractiveness4.SelectTargetSegment(s)5.DevelopPositioningforEachSegment6.DevelopMarketingMixforEachSegmentMarketPositioningMarkettargetingMarketSegmentationStepsinSegmentation,Targeting,andPositioningSegmentationTheprocessofidentifyingspecificsegments–whethertheybecountrygroupsorindividualgroups—ofpotentialcustomerswithhomogeneousattributeswhoarelikelytoexhibitsimilarbuyingbehavior.LevelsofmarketingsegmentationMassmarketingSegmentmarketingNichemarketingMicro-marketingCompletesegmentationNosegmentationBasesforSegmentingConsumerMarketsCHARACTERISTICSDemographicGeographicBehaviorPsychographicsCharacteristicsGeographiclocation:•Populationbycountry•Popn.byRegion•Popn.byCitysize•Popn.bySuburbs•Popn.byDistrictsDemographics:•Gender•Age•Income•Occupation•Maritalstatus•Householdsize•Race•Religion•Educationlevel•Socioeconomicstatus•LifecyclestageBasesforidentifyinghomogenousgroupsofconsumersthataremeasurable,accessible,substantialand,actionableGeo-demographicsSegmentingBusinessMarketsBasesforSegmentingBusinessMarketsDemographicsPersonalCharacteristicsSituationalFactorsOperatingVariablesPurchasingApproaches12345678Single-factorsegmentation5643gender21AgefemalemaleDouble-factorsegmentationgenderIncomecareerThree-factorssegmentationManufacturerAautomobilescanningconstructionMovablehousepartsRawmaterialsmallmiddlelargehighlowmiddleusersapplicationUsersizepriceMulti-segmentationEffectiveSegmentationRequirementsforEffectiveSegmentationMeasurableSubstantialActionableAccessibleTargetingAsetofbuyerssharingcommonneedsorcharacteristicsthatthecompanydecidestoserve.EvaluatingMarketSegmentsSizeandGrowthStructuralAttractivenessCompanyObjectivesandResourcesMarketCoverageStrategiesSegment1Segment2Segment3CompanyMarketingMixSegment1Segment2Segment3CompanyMarketingMixCompanyMix1CompanyMix2CompanyMix3MarketA.UndifferentiatedMarketingB.DifferentiatedMarketingC.ConcentratedMarketingChoosingaMarket-CoverageStrategyFactorsAffectingStrategyDecisionsCompanyResourcesCompetitors’StrategiesMarketVariabilityProductVariabilityStageinLifeCyclePositioningThewaytheproductisdefinedbyconsumersonimportantattributes–theplacetheproductoccupiesinconsumers’mindsrelativetocompetingproducts.ProductPositioningAgainstaCompetitorUsageOccasionsAwayfromCompetitorsProductAttributesProductClassBenefitsOfferedUsersBAEDCHGFPositioningforCompetitiveAdvantageProductServicePersonnelImageAreasforCompetitiveDifferentiationPromotingDifferencesCriteriaforDeterminingWhichDifferencestoPromoteAffordableSuperiorProfitablePreemptiveDistinctiveImportantCommun-icableQuality(high)(low)Price(high)(low)ABCDE1E2E3ProductpositioningHighpriceLowpriceNotrich(Lowinbutterfatcontent)Veryrich(Highinbutterfatcontent)I2regularI1SuperpremiumI4economyI3LowcalorieHighProductivityMarketinginnovationOncemarketshareisgained,differentiatedproductsaredevelopedlowhighSwissluxurywatchesSEIKOSWATCHFashion-basedlow-costproductionLow-costvolumeproductionLowDevelopingacompetitivepositioninthewatchindustrySource:Theessenceofmarketing,Simonmajaro,PrenticeHallEurope,1993CheapMappingofcigarettesintheGermanmarket(illustrationonly-positionsshownarenotnecessarilycorrecttoday)Source:Theessenceofmarketing,Simonmajaro,PrenticeHallEurope,1993,P197LuxuryYoungOld•Lord•B&H•Marlborough•Prince•HB•PeterStuyvesant•Camel•WestNextweekProductandservicesstrategyAssignment:Reviewingthelecture6Textbook(chapter7)Casestudy:enterpriserent-a-car:sellingthesream(Page285-287)gettinginformationandwritingtheoutletontheproductandservicesreategyTextbook(chapter8-9)