competition is everywhere
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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. Focus Questions: - PowerPoint PPT PresentationTRANSCRIPT
© 2009 South-Western, Cengage LearningMARKETINGMARKETING
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Chapter 7
COMPETITION IS COMPETITION IS EVERYWHEREEVERYWHERE
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
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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?
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FOCUSING ON MARKET SEGMENTS
GOALSGOALSDescribe 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.
7-1
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Market Segmentation
The benefits of segmentationsSegmentation categories
Geographic segmentationDemographic characteristicsPsychographicsProduct usageBenefit expectations
Segmenting the business market
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Demographic Characteristics of Education and Income
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Identifying and AnalyzingMarket Segments
Identifying Possible SegmentsDetermining Market Potential
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Determining Market Potential
1. Number of potential customers
2. Interest in the product or service and other mix elements
3. Money available to make the purchase
4. Ability to communicate with and distribute product to consumers
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Market Potential
Market potential is the total revenue that can be obtained from the market segment.
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Market Share
Market share is the portion of the total market potential that each company expects to get in relation to its competitors.
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POSITIONING FORCOMPETITIVE ADVANTAGE
GOALSGOALSExplain the various bases for
positioning a product to distinguish it from the competition.
Describe the three common positioning strategies.
7-2
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Basis for Positioning
AttributePrice and qualityUse or applicationProduct userProduct classificationCompetitor
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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
Market Position
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Selecting a Positioning Strategy
Consumer perceptionsCompetitionBusiness environment
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COMPETING FOR MARKET SEGMENTS
GOALSGOALSExplain direct vs. indirect competition
and price vs. non-price competition.Describe the benefits of competition to
consumers.
7-3
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Types of Competition for Positioning Decisions
Direct competitionIndirect competitionPrice competitionNon-price competition
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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.
© 2009 South-Western, Cengage LearningMARKETINGMARKETINGChapter 7
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LEARNING ABOUT THE COMPETITION
GOALSGOALSDiscuss the types of information
businesses need to know about their competitors.
Describe the kinds of activities businesses engage in to gain marketing intelligence.
7-4
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Types of Competitive Information
Pricing strategiesDistribution decisionsProduct/Service planningPromotional effortsCompetitor’s market position
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Collecting Competitive Information
Information sourcesSalespeople and other employeesAnalysis of competitors’ products.Articles, research reports, and public information Professional and trade publicationsCustomers and customer recordsTrade showsThe Internet
Ethics in information gathering