Marketing and Market Segmentation

2 Getting to Strategy Where are the opportunities? Vision Strategy Environmental conditions Competitor activity YOU why are you doing this? what do you have to offer? your values Customers wants needs & values Competitive Advantage Plan

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT 3 The Concept of Marketing The outside in approach to arriving at strategy

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Market orientation – asking what the customer wants and delivering it (at a profit) Customer focus rather than self focus. Marketing definitions: 4

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT 5 “In business markets, almost every customer needs a customized product, quantity, or price. In fact, each segment effectively consists of one customer” Das Narayandas “Building Loyalty in Business Markets”

Gary Hamel (London Business School) Deciding what a future market will look like and then stretching your firms skills so that it can take advantage of that market Design Investor Own / lease Time Cost Quality Risk taker Existing building New building User Home owner Developer Risk adverse Customer Differentiation

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT 7 Thinking about specialisation Market segmentation Market Niches

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Major divisions of the market into groupings of customers that require significantly different products or services eg cars -cheap cars medium size cars luxury vehicles Market Segmentation 8

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Property Development Quantity surveying services Construction Contractors Take one of the following markets and describe how they are segmented? 9

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Kids bikes Commuter bikes Road racing bikes Mountain bikes - general use -racing -freestyle -downhill Corner pictures Market niches 10 Division of the market into small groups that have needs that can be better serviced by specialising in satisfying those needs

11

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT New buildings market Other types of construction services Describe some market niches in: 12

>>FACULTY OF TECHNOLOGY AND BUILT ENVIRONMENT Exercise 4 >>DEPARTMENT of CONSTRUCTION