S15 segmentation and targeting

S15 segmentation and targeting

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  Segmentation and Targeting INTERNATIONALMARKETING
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  Strategic marketing -STP Segmentation Targeting Positioning The right relationship for right customers • Huge number of customers. • Widely distributed. • Different needs and expectations. Analyzing the marketing strategy
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  Evolution Mass market 20th Century Marketsegmentation 21st Century • Mass marketing. • Mass production. • Mass distribution. • Mass promotion. • Identifying market segments. • Selecting one or some of them. • Developing different products.
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  Positioning the targetmarket Segmentation • Divide the market into smaller groups of consumers. • Define markets’ profiles according to the segmentation. Targeting • Assess the potential of certain segments. • Select one or more segments to enter. Positioning • Give the product a competitive position. • Design marketing mix. marketingforprofessionals.co.nz
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  Segmentation Divide a marketinto different groups of buyers based on their needs, characteristics or behaviors, and that may require different products or different marketing mix strategies. Huge and heterogene ous markets 1 2 3 4 Uniqueneeds  Customer segmentation  Industry segmentation  International markets segmentation Requirements for an effective segmentation
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  Customer segmentation There isno a single way to segment a market. Geographic Demographic Psychographic Behavioral Segmentation variables Individually Combination
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  Geographic segmentation Divide amarket into different geographical units such as nations, states, regions, cities, towns or neighborhoods. • A company may attend one or more geographical areas but responding to their needs and expectations. www.choice.com.au
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  Demographic segmentation Divide themarket into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race and nationality.  Influence on needs, desires and frequency.  Easier to measure. Age Life cycle
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  Psychographic segmentation Divide amarket into different groups based on social class, lifestyle or personality characteristics. www.123rf.com
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  Behavioral segmentation Divide amarket into groups according to the knowledge, attitudes, use or consumer response to a product. Occasion • Divide according to occasions when customers conceived the idea of buying, make the purchase or use the product. Benefits • Market division into groups according to the different benefits that consumers are looking for in the product. User situation • No user • Past users • Potential users • First-time users • Regular users
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  Summary of variables Geographic Countryor region Region within a country Population Zone conditions & Climate Demographic Age, generation and gender Family size and cycle Nationality, race and religion Education, job and income Psychographic Socioecono mic level Lifestyle Personality Behavioral Expected benefits Occasion and frequency Customer situation Attitude and loyalty
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  Industry segmentation Geographic Location. Demographic Sector, company’s size. Behavioral Needs,frequency, loyalty. Special characteristics of the companies
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  International markets segmentation Havingoperations abroad represents a big challenge for all the companies Geographic (Regions) Economic (Development, system) Political and legal (Government, barriers) Cultural (Elements of the culture) Segmentation Segmentation between markets Consumer segments with similar needs and purchasing behaviors, although they are in different countries. www.atelusa.com www.telegraph.co.uk
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  Requirements for aneffective segmentation Effective Segmentation Segments must be Measurable (Quantifying) Accessible (Get to customer) Differentiated (Different responses) Applicable (Design their strategies)
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  Targeting Process of assessingthe attractiveness of each market segment and choose one or more elements to try to enter. Segmentation Opportunities Which? How many? How? Assessment
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  Assessment of segments S,M, L? Profits, sth. relative Size and growth Competitors , substitute goods, power of customers and suppliers. Structure Objectives and resources Company
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  Selecting a targetmarket Mass marketing Differentiated marketing Concentrated marketing Direct marketing Target market Set of buyers who have common needs or characteristics, which the company decides to attend. Strategies for reaching target markets Coverage
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  MASS MARKETING Strategy inwhich a company decides to ignore market segment differences and attend the entire market with a single offer. DIFFERENTIATED MARKETING Market coverage strategy in which a company decides to enter into several market segments and designs individual offers for each one. Gain position in different segments Higher costs
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  CONCENTRATED MARKETING Market coveragestrategy in which a company tries to get a significant participation in a submarket or a few submarkets.  Niche is smaller  Less competitors  Limited resources DIRECT MARKETING Adapting products and marketing programs to the needs and wishes of local customer groups and specific individuals. Local marketing: Adjusting brands and promotions to the needs and wishes of local consumer groups, such as cities, neighborhoods and even specific stores. Individual marketing: Adapting products and marketing programs to the needs and preferences of individual customers.