MARKETING STRATEGIES Segmentation, Targeting and Positioning презентация

Demographic segmentation Measurables characteristics of people such as population, income, age distribution, gender, education, occupation Q 1:Look at these global trends: -Fewer married couples -Smaller family size -Changing roles of women -Higher incomes and living standards Now take one of them to explain the possible implications in terms of market opportunities. Q 2: What was the opportunity sized by big supermarkets like carrefour or walmart?

Segmenting Global markets by income and population: Segmenting Global markets by income and population: the number of consumers is more important than the income for low per unit cost products

While providing some measures of market potential, such macro level demographic data should not be used as the only indicator of presence (absence) of a market opportunity especially in emerging markets. e.g: TV market While providing some measures of market potential, such macro level demographic data should not be used as the only indicator of presence (absence) of a market opportunity especially in emerging markets. e.g: TV market Puchasing power parity should be calculated to understand if the difference of income really indicades a low purchasing power. Q 3: Why customers in China should not be regarded as an homogeneous mass?

A3: Although mandarin is the dominant laguage, there are 8 major languages and several dialects and other minor languages. behind each language variation there are differences in taste, activities and aspirations. A3: Although mandarin is the dominant laguage, there are 8 major languages and several dialects and other minor languages. behind each language variation there are differences in taste, activities and aspirations.

Age segmentation To understand better how this demographic is assesed by marketers lets look at some commonly used groups: Global teens: Young people 12-18 whose share interest for fashion, music, lifestyle and consumption habits. Global telecommunications revolution was the driving force behind the emergence of this group. e.g. MTV, internet, satelited western shows.

Global elite: wealthy in search of prestige and exclusivity.Old business men, musicians, elite athletes, movie stars, entrepreneurs, young business innovators Global elite: wealthy in search of prestige and exclusivity.Old business men, musicians, elite athletes, movie stars, entrepreneurs, young business innovators e.g. durables: luxury cars non durables: Drinks Financial services

Gender Segmentation The obvious segmentation is male female, however there are other sexual orientation groups to focus on, and among them subgroups. e.g. LGBT (lesbian, gay, bisexual, and transgender)

Psychographic Segmentation Grouping people in terms of their attitudes, values, and lifestyles. Usually measure by using likert scales. The mind set of consumers is usually more relevant than their age group. e.g. extreme sports enthusiasts

Behaviour Segmentation Focuses on whether people buy and use a product as well as how often and how much they use it or consume it. Consumers can be categorized according to: -Usage rates: heavy, medium, light, non user -Status: potential, non users, ex users,regulars, first-timers and users of competitor´s products Q6: Let´s choose a product and determine its usage rate and status

The 80/20 rule (law of disproportionality or pareto´s law) The 80/20 rule (law of disproportionality or pareto´s law) An 80% of a company revenues must be generated by the 20% of its products or services. e.g. Mc Donalds Q6: (opinion question) Which kind of modern business are succesful are generating major revenues with minor investment?

Benefit Segmentation It focuses on a superior understanding of the problem a product solves, the benefit it offers, or the issue it adresses regardless of geography. cavities e.g. tooth paste whitening sensitive teeth gum desease Q7: What is the focus given to pet food that made it more appeling to pet owners?

Etnic Segmentation This segmentation approach addresses the specific needs of ethnic groups or appeals to their ethnic identity. Ethnic identity is stronger in nations where different ethnic groups voluntarily or not do not integrate to the majority population group. e.g. USA main ethnic groups are: -African/ black Americans -Asian Americans (Thai, Vietnamese, Chinese) -Hispanic Americans (Mexican, Puerto Rican, Cuban) Q8: What are some of the characteristics of Hispanic American Segment?

Global Market Targeting Assesing Market Potential and Choosing Target Markets or Segments Assessing the attractiveness of the identified segments. 3 criteria to assess correctly market opportunities: -Current size of the segment and anticipated growth potential -Competition and compatibility with the company´s overall objectives -Feasibility of successfully reaching the designated target market Pitfalls: Overstating the size and short term attractiveness of individual country markets Targeting countries due to shareholders or competition preassures. Q9: Why BMW did not launched its own minivan?

A framework for selecting target markets Arnold´s framework is a "bottom-up" approach that goes beyond demographic data and begins at the product-market level (market defined by a product categoty). e.g. Luxury car market, SUV market, Minivan Market It incorporate 2 core concepts:

Market entry After model drivers and enabling conditions have been identified the estimated costs of entry must be weighted on the basis of short and long term strategies. Timing is essential to avoid failure and generate advantage over existing or future competitors. e.g. Jollibee vs Mc Donalds in Philippines. Create a product maketing profile which will allow you to identify the model drivers and enabling conditions. Q10: What are the advantages and disadvantages of first movers in contrast to late movers?

Product Market Decisions Is the product or service suitable for the country or market segment? Use a market product grid to look at it:

Q11: To face the problem of high temperatures in India what are some entry strategies suitable for Nestle Chocolats? Q11: To face the problem of high temperatures in India what are some entry strategies suitable for Nestle Chocolats?

Target market Strategy Options After analysing the market and deciding to go ahead companies must develop a targeting strategy. There are 3 basic categories of TMS: -Standarized Global Marketing -Concentrated Global Marketing -Differentiated Global Marketing Q12: Give an example of a product for each marketing strategy?

Positioning Strategies Refers to the differentiation of a brand in customers´ mind in relation to competitors (what attributes and benefits does and does not offer). e.g: Uniliver detergents Colgate total variants General positioning strategies: -Attribute or benefit -Quality and price -Use or user -Competition -Global, foreign and local culture positioning

Q13: How does people evaluate high tech products? Q13: How does people evaluate high tech products? Q14: How does people relate to high touch products? Q15: Why is english used for advertising in non english speaking countries? Q16: Why do these brand symbols contribute to the global image of the products they represent?