Applied Mareking

What is a market segment? A market segment consists of a group of customers who share a similar set of needs and wants.

Segmenting consumer markets Geographic Demographic Psychographic Behavioural

Geographic segmentation  Region of the world  Country  Region of a country  City

Demographic segmentation Age and life cycle Life Stage Gender Income Generation Social class

Psychographic segmentation Psychographic segmentation divides buyers into different groups on the basis of traits, lifestyles or values. AIO Factors that describe individual lifestyles Activities Interests Opinions

Behavioral segmentation: decision roles Initiator Influencer Decider Buyer User

Behavioural segmentation: behavioural variables  Occasions  Benefits  User status  Usage rate  Buyer-readiness  Loyalty status  Attitude

Behavioral segmentation breakdown Figure 10.4 Behavioural segmentation breakdown

Figure 10.3 Brand funnel

Relationship Ladder

The conversion model ConvertibleShallowAverageEntrenched Strongly unavailable AmbivalentAvailable Weakly unavailable Users Nonusers

Purchase decision Process

AIDA ModelAttention Interest Desire Action

Three Product Levels

What is positioning? Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

Examples of Value propositions Table 10.8 Examples of value propositions Source : M. R. V. Goodman, Durham University

Defining associations Points-of-difference (PODs)  Attributes or benefits consumers strongly associate with a brand, positively evaluate and believe they could not find to the same extent with a competitive brand. Points-of-parity (POPs)  Associations that are not necessarily unique to the brand but may be shared with other brands.  Necessary but not sufficient

Negatively correlated attributes and benefits Table Examples of negatively correlated attributes and benefits

Understanding competitive structure of a market  How do customers view the brand?  Which competitive brands do customers perceive to be their closest competitors?  What market offering and company attributes are most responsible for these perceived differences?

What is perceptual mapping? Perceptual (or positioning) mapping is a marketing tool that enables marketers to plot the position of their offering against those of the competition? Figure 10.7 Example positioning map of the UK chocolate block sector market Source : M. R. V. Goodman, Durham University

Product differentiation  Product form  Features  Performance  Conformance  Durability  Reliability  Reparability  Style  Design  Ordering ease  Delivery  Installation  Customer training  Customer consulting  Maintenance

Slide Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Lessons from product life cycles  Products (market offerings) have a limited life.  Sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller.  Profits rise and fall at different stages of the product life cycle.  Products require different marketing, financial, manufacturing, purchasing and human resource strategies at each stage.

Slide Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Long-range product life cycle

Introduction Growth MaturityDecline

Slide Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009

Slide Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009

Slide Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 PLC Style, Fashion, Fad

Where do these fall on the PLC  FAX  TABLET PC  DESKTOP PC  MOBILE PHONE  SMART PHONE  CALCULATOR  ULTRABOOK  E-READER

What about these?  CRT TV  LCD TV  LED TV  PLASMA TV  3-D TV  WINDOWS 98  WINDOW XP  WINDOWS VISTA  WINDOWS 7  WINDOWS 8

Ansoff’s Matrix Current ProductsNew Products Current Markets Market penetration strategy Product development strategy New Markets Market development strategy Diversification strategy