Target marketing: choosing which group(s) to appeal to Market positioning: creating a clear, distinctive position in the
consumers mind relative to competition
Customerization
Combines operationally driven mass customization with customized marketing in a way that empowers consumers to design the product and service offering of their choice.
Demographic Segmentation
Age and Life Cycle Age and Life Cycle Life Stage Life Stage Gender Gender Income Income Generation Generation Social Class Social Class
Behavioral Segmentation
Decision Roles Initiator Influencer Decider Buyer User Behavioral Variables Occasions Benefits User Status Usage Rate Buyer-Readiness Loyalty Status Attitude
Geographic: Regions Size/density Climate Demographic: Age/generation Gender Family size/life-cycle Income Occupation Religion Ethnic origin
Psychographic: Social class Lifestyle Personality Behavioral: Occasions Benefits User status Usage rate Loyalty status Readiness state Attitude toward product
Demographic: Industry Company size Location Operating variables: Technology User/non-user status Customer capabilities Situational factors: Urgency Specific application Size of order
Purchasing approaches: Purchasing organization Power structure Existing relationships General policies Purchasing criteria Personal characteristics: Buyer-seller similarity Attitude towards risk Loyalty
Cultural factors Intermarket segmentation: Forming segments of consumers who have similar needs, even though they live in different countries
Measurable: Size, purchasing power, and profiles can be measured Accessible: Segments can be reached Substantial: Large enough to be profitable Actionable: Programs can be developed to attract and serve the segments
Segment size and growth Structural attractiveness Competition, substitute products, power of buyers/suppliers Company objectives and resources
Figure 9.2
Factors to be considered:
Company resources Product variability Products life-cycle stage Market variability Competitors marketing strategies
Concentrated Marketing (niche marketing): when a firm commits all of its marketing resources to serve a single market segment Micromarketing: involves targeting potential customers at a very basic level, such as by ZIP code, specific occupation, lifestyle, or individual household
Selecting and Executing a Strategy No single, best choice strategy suits all firms Determinants of a market-specific strategy: Company resources Product homogeneity Stage in the product life-cycle Competitors strategy
Positioning for Competitive Advantage Product position: the way the product is defined by consumers
on important attributes, relative to competing products
Which Differences to Promote? Unique selling proposition (USP): aggressively promoting one
benefit to the target audience
Possible Value Propositions Value proposition: Full positioning of a brand Mix of benefits used for positioning
Figure 9.3
Positioning: a marketing strategy that emphasizes serving a specific market segment by achieving a certain position in buyers minds Attributes Price/quality Competitors Application Product user Product class
Positioning map Graphic illustration that shows differences in consumers perceptions of competing products Reposition Marketing strategy to change the position of its product in consumers minds relative to the positions of competing products
PERCEPTUAL MAPPING
DEFINITION
Perceptual mapping is a graphics technique used
by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a product, product line, brand, or company is displayed relative to their competition.
WHAT IS PERCEPTUAL MAPPING ? Marketing research technique in which consumer's views about a product are traced or plotted (mapped) on a chart. Respondents are asked questions about their experience with the product in terms of its performance, packaging, price, size, etc. Theses qualitative answers are transferred to a chart (called a perceptual map) using a suitable scale (such as the Likert scale), and the results are employed in improving the product or in developing a new one.
When plotting a perceptual map two dimensions are commonly used. Any more is a challenge to draw and confusing to interpret Below is a very basic perceptual map
If we plot the UK chocolate market we can identify those brands which are high price and high quality. Belgium chocolates are plotted as high quality and high price, and twix is plotted one low quality low price brand. Once completed the perceptual map could help identify where an organization could launch a new brand perhaps at the medium price and quality range.
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