1. Segmentation and Planning for change

2. Why do we need to segment?
Because different consumer groups needs are different
To maintain focus on the customer target segment
To customise advertising according to target segment

3. Segmentation
The analytical goal is to measure Consumer Behaviour and place each person in a group (segment) that will minimise the behaviour between each member of the segment and maximise the variance between segments

4. Why do we need to segment?
Because people vary so much from other people – needs, motivations, decision processes, buying behaviour

5. Segmentation is a spectrum
Concentrated marketing
Differentiated marketing
Mass marketing
Niche marketing

6. Bases for segmentation
Geographic
Demographic
Psychographic
Behavioural – benefit, usage situation, extent of usage

7. Segmentation Strategy
Demographic
Usage
Brand Loyalty
Attitudes and benefits
Psychographic or lifestyle
Culture and ethnic subculture

8. Factors affecting size of segments
Affluence
Sophisticated consumer measurement and databases
Custom manufacturing
New forms of distribution

9. Micromarketing
The result of understanding and relating to an increasingly fragmented market place

10. Criteria for choosing market segments
Measurability
Accesibility
Substantiality
Congruity

11. Reaching Target segments
Controlled coverage
Customer self-selection

12. Planning for change
Unless managements act, the more successful a company has been in the past, the more likely it is to fail in the future.
Because the basic psychological principle is that people tend to repeat behaviour for which they have been rewarded
Successful strategies must fit an environment that is constantly changing. Frequently the future arrives before managers are willing to give up the present.

13. Consumer Analysis and Social Policy
Policy issues related to macromarketing and trends in consumer decisions
Behavioural/ Psychological economics economics

14. Enhanced Shareholder Value (ESV)
The ability of a company to provide job security and satisfaction, satisfy customers, grow profits consistently, adopt sound long-term strategies, ability to weather business shocks.

15. 3 M’s of profit Growth
More markets
More market share
More margins

16. Markets have 4 components
People and their needs
Ability to buy
Willingness to buy
Authority to buy

17. Customer Buying Career
Observing
Making requests
Making selections
Making assisted purchases
Making independent purchases

18. Behavioural consumer segmentation (Cohort analysis)
Baby boomers
Baby busters
Skippies
Yuppies
Muppies
Empty nesters
‘Young again’

19. Ethnocentricity
Focusing on one’s own way of doing things with very little sensitivity or interest in the ways of the world
Marketing practitioners need cultural empathy defined as the ability to understand the inner logic and coherence of other ways of life.

20. Porter’s 5 factors that characterise contemporary markets
Growing similarity of countries
Fluid global capital markets
Technological restructuring
Integrating role of technology
New global competitors

21. Finding countries with the largest populations is not the only challenge facing companies wanting to expand profits. The greatest challenge is for the ‘rich’ countries that hope to have growing markets for their products is to assist the ‘poor’ countries in developing themselves to where they are also rich enough to be economically strong markets

22. Cultural analysis of global markets
Cultural empathy
‘Think global, act local’
‘Think local, act global’
‘Glocalisation’
Therefore, standardisation is rarely possible.

23. Communication Problems
The diversity of markets and consumers also pose several communication challenges for marketers
Therefore visual language, pictures are mostly used for better universal understanding. Gestures and words can be misleading

24. Language problems
“ Please leave your values at the desk” – Paris Hotel
“ Drop your trousers here for best results” – Bangkok laundry
“ Because of the impropriety of entertaining guests of the opposite sex in the bedroom, it is suggested that the lobby be used for the purpose” – Zurich hotel
“ The manager has personally passed all water served here” – Acapulco restaurant
“ Ladies are requested not to have children in the bar’ – Norway bar

25. Conceptual Equivalency
“ Come alive with Pepsi”
“ Come alive out of the grave” – Germany
“ Pepsi brings your ancestors back from the grave” - China

26. Positioning What the product stands for? Mind-share
Positioning and segmentation strategies must have fit. A brand must be positioned to be maximally effective in attracting the desired target segment.

27. Positioning strategies
Product characteristics/benefits
Price-quality approach
Use or application approach
Product class approach
Product user approach
Cultural symbol approach
Competitor approach

28. Positioning strategies
Identify competitors
Determine how competitors are perceived and evaluated
Determine the competitors positions
Analyse the customers
Select the position
Monitor the position

29. Psychographically Understanding the TV User
High Price/ Quality
The prestige-seeker
Samsung
Philips
Sony
The technology-seeker LG
The reliance-seeker
Toshiba
BPL
Conservative
Videocon
Innovative
Onida
Akai
Sansui
I am very interested in new technology and gadgets
The economy-seeker
Aiwa
Sharp
Low Price/ Quality

30. Positioning Decision Economic analysis should guide the decision
Segmentation commitment
Not change for change sake. To stick with the advertising if it is working.
Make it easy for customers to remember/recall. Use symbols, logos, etc. as a memory aid.
Be honest.