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After studying this chapter you will: Understand why marketing strategy planning involves a process of narrowing down from broad opportunities to a specific target market and marketing mix, know about the different kinds of marketing opportunities, understand why opportunities in international markets should be considered,...
Chapter 3: Focusing Marketing Strategy with Segmentation and Positioning For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter Objectives When you finish this chapter, you should 1. Understand why marketing strategy planning involves a process of narrowing down from broad opportunities to a specific target market and marketing mix. 2. Know about the different kinds of marketing opportunities 3. Understand why opportunities in international markets should be considered 4. Know about defining generic markets and productmarkets 32 5. Know what marketing segmentation is and how to segment productmarkets into submarkets 6. Know three approaches to marketoriented strategy planning 7. Know dimensions that may be useful for segmenting markets 8. Know what positioning is— and why it is useful 10. Understand the important new terms For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Marketing Strategy Planning Process Narrowing down to focused strategy with screening criteria Customers Company S W O T Segmentation & Targeting Product Place Target Market Differentiation & Positioning Price Promo Competitors External Market Environment Exhibit 31 33 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Opportunities Four Basic Types of Opportunities Present Products Present Markets New Markets New Products Market Penetration Product Development Market Development Diversification Exhibit 32 34 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill W ler Sm al Ea rl y St ar t 35 ive ti t e pe g m n ta Co va Ad or ld Considering International Opportunities n e r T r te t Be ? s d For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Narrowing Target Markets Selecting target marketing approach Narrowing down to specific product-market All customer needs Some generic needs One broad product market Segmenting into possible target markets Homogeneous (narrow) product markets Single target market approach Multiple target market approach Combined target market approach Exhibit 33 36 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Generic and Product-Market Definitions Generic Market Definitions Customer (user) needs Exhibit 34 37 + Customer types + Geographic area + Product type (good and/or service) ProductMarket Definitions For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Market Segmentation Broad product-market (or generic market) name goes here (The bicycle-riders product-market) Submarket (Exercisers) Submarket (Off-road adventurers) Submarket (Transportation riders) Submarket (Socializers) Submarket (Environmentalists) Exhibit 35 38 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Market Segmentation B Product-market showing six segments Status dimension Status dimension A Product-market showing three segments Dependability dimension Dependability dimension Exhibit 36 39 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Market-Oriented Approaches A segmenter The Strategy Using single target market approach— can aim at one submarket with one marketing mix Exhibit 37 310 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Market-Oriented Approaches A segmenter Strategy One Strategy Three Using multiple target market approach— can aim at two or more submarkets with different marketing mixes Strategy Two Exhibit 37 311 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Market-Oriented Approaches A combiner The Strategy Using combined target market approach—can aim at two or more submarkets with the same marketing mix Exhibit 37 312 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Segmentation Dimensions All All Potential Potential Dimensions Dimensions Qualifying Qualifying Dimensions Dimensions Focus: Relevant Purchase Behavior Focus: Relevant Customer Type Determining Determining Dimensions Dimensions (Product (Product Type) Type) Focus: Determining Determining Dimensions Dimensions (Brand (Brand Specific) Specific) Focus : Specific Purchase Influence Attraction to Brand Exhibit 312 313 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Positioning of Different Bar Soaps High moisturizing • Tone • Zest • Lever 2000 • Dove • Safeguard • Lux Nondeodorant Deodorant “Product Space” • Lava Representing Consumers’ Perception for Different Brands of Bar Soap Low Exhibit 313 moisturizing 314 • Dial • Lifebuoy For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Terms Breakthrough Opportunities Competitive Advantage Differentiation S.W.O.T. Analysis Market Penetration Market Development Product Development Diversification Market Generic Market ProductMarket Market Segmentation 315 Segmenting Market Segment Single Target Approach Multiple Target Approach Combined Target Approach Combiners Segmenters Qualifying Dimensions Determining Dimensions Clustering Techniques Positioning For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill ... product markets Single target market approach Multiple target market approach Combined target market approach Exhibit? ?3? ?3 36 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies,... Diversification Exhibit? ?3? ?2 3? ?4 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill W ler Sm al Ea rl y St ar t 3? ?5 ive ti t e pe g m n ta Co va Ad... The Strategy Using single target market approach— can aim at one submarket with one marketing mix Exhibit? ?3? ?7 3? ?10 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies,