1. COMPETITION IS EVERYWHERE
CHAPTER 07
5/11/2018
CHAPTER 7
COMPETITION IS EVERYWHERE
7-1 Focusing on Market Segments
7-2 Positioning for Competitive Advantage
7-3 Competing for Market Segments
7-4 Learning about the Competition
Chapter 7
MARKETING

2. Chapter 7 Focus Questions:
In what ways is PJ Madison’s trying to suggest its ice cream is different and better than other brands?
What types of consumers do you believe will be attracted to the advertisement?
In your view, is the ad effective at encouraging customers to try PJ Madison’s ice cream? Why or why not?
Courtesy of PJ Madison’s. Used with permission.
Chapter 7

3. FOCUSING ON MARKET SEGMENTS
7-1
FOCUSING ON MARKET SEGMENTS
GOALS
Describe how markets can be segmented by geographic location, demographic characteristics, psychographics, product usage, and benefits derived.
Explain how to evaluate market potential and calculate market share.
Chapter 7

4. Market Segmentation The benefits of segmentations
Segmentation categories
Geographic segmentation
Demographic characteristics
Psychographics
Product usage
Benefit expectations
Segmenting the business market
Chapter 7

5. Demographic Characteristics of Education and Income
Chapter 7

6. Identifying and Analyzing Market Segments
Identifying Possible Segments
Determining Market Potential
Chapter 7

7. Determining Market Potential
Number of potential customers
Interest in the product or service and other mix elements
Money available to make the purchase
Ability to communicate with and distribute product to consumers
Chapter 7

8. Market Potential
Market potential is the total revenue that can be obtained from the market segment.
Chapter 7

9. Market Share
Market share is the portion of the total market potential that each company expects to get in relation to its competitors.
Chapter 7

10. POSITIONING FOR COMPETITIVE ADVANTAGE
7-2
POSITIONING FOR COMPETITIVE ADVANTAGE
GOALS
Explain the various bases for positioning a product to distinguish it from the competition.
Describe the three common positioning strategies.
Chapter 7

11. Basis for Positioning Attribute Price and quality Use or application
Product user
Product classification
Competitor
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12. Market Position Chapter 7 Laundry Product A Laundry Product B
Attribute
Cleans quickly and easily
Leaves fresh scent
Price and Quality
Low price, good value
Higher price for highest quality
Use or Application
Use as pre-wash on tough stains
Use for hand-washing delicates
Product User
Homemaker’s reliable friend
New generation’s discovery
Product Classification
Used by Olympic athletes
Used by professional laundries
Competitor
Gets out dirt Product B can’t
Gentler on clothing than Product A
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13. Selecting a Positioning Strategy
Consumer perceptions
Competition
Business environment
Chapter 7

14. COMPETING FOR MARKET SEGMENTS
7-3
COMPETING FOR MARKET SEGMENTS
GOALS
Explain direct vs. indirect competition and price vs. non-price competition.
Describe the benefits of competition to consumers.
Chapter 7

15. Types of Competition for Positioning Decisions
Direct competition
Indirect competition
Price competition
Non-price competition
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16. Benefits of Competition
Consumer receives the best price for products.
Competition encourages improvements in products with the addition of unique features and benefits.
Businesses are always looking for new and improved products to match their competition.
Competition offers consumers the benefit of a wide variety of products from which to choose.
Chapter 7

17. LEARNING ABOUT THE COMPETITION
7-4
LEARNING ABOUT THE COMPETITION
GOALS
Discuss the types of information businesses need to know about their competitors.
Describe the kinds of activities businesses engage in to gain marketing intelligence.
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18. Types of Competitive Information
Pricing strategies
Distribution decisions
Product/Service planning
Promotional efforts
Competitor’s market position
Chapter 7

19. Collecting Competitive Information
Information sources
Salespeople and other employees
Analysis of competitors’ products.
Articles, research reports, and public information
Professional and trade publications
Customers and customer records
Trade shows
The Internet
Ethics in information gathering
Chapter 7