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Identifying Market Segments and Targets
Chapter 8…
Amoroso , AremWong, Audren
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• Target Marketing• Market Segment• Consumer characteristics and responses
– Geographic Segmentation• Grassroots marketing
– Demographic Segmentation– Multicultural marketing– Psychographic Segmentation– Behavioral Segmentation
• Combining data for richer consumer description• Not all segmenting schemes are useful• Steps in the Segmentation Process• Selecting Market Segments
OUTLINE
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Concept 1: Target marketing
• Why Segment the Market? • Companies cannot connect with all customers in large,
broad, or diverse markets• “To compete more effectively…[companies] are now
focusing on those consumers they have the greatest chance of satisfying.”
Examples:Kotler: Club Med – catering to young couples, adventure seekersLocal: Cebu Pac – catering to “budget” commutersRP medical application: Different specializations – catering to
specialized needs
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• Segmentation: – Identify and profile market segments– Select market segment(s) to enter– Establish and communicate distinctive benefit(s) of
the company’s market offering
• Market segments– Large, identifiable groups within a market– Group of customers who share a similar set of
needs and wants
Definition of Terms
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Concept 2: Bases for Segmenting Consumer Markets
• Consumer Characteristics
• Consumer Responses
• Geographic• Demographic• Psychographic
• Behavioral Response– Benefits– Usage – Brands
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Consumer Characteristics
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Concept 3: Geographic Segmentation
• Divide into geographical units– Kotler/Local: Nation, States, Regions, Countries, Cities,
Neighborhoods– Medical Application: Medical Diagnostics Hubs in densely
populated areas
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• Getting as close and personally relevant to individual customers as possible– Kotler: Nike (sponsorship of local school teams, expert-conducted
clinics, provision of shoes, clothing, equipment); Citibank and neighborhood demographics, Curves
– Local: GK – customized approached to different beneficiaries
– Medicine: Gov’t Medical Missions
Concept 4: Geographic Segmentation (Grassroots marketing)
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– Kotler: Crest and Colgate to age and life cycle stage (kids, adults, older consumers), Pampers
– Local: Dove deodorants for men/women, Bench - Herbench
– Medical: Belo, Hospitals (Paying and Charity Wards)
Concept 5: Demographic Segmentation
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• recognizing that different ethnic and cultural segments have different needs and wants that require targeted marketing activities
• Can result in different marketing messages, media, channels, etc.– Kotler: McDonalds “I’m Loving It” rooted in hip-hop culture;
– RP: LGBT
– Medical: Topic conferences in TMC, “Patient Partner”
Concept 6: Multicultural Segmentation
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• Psychographics– Using psychology and demographics to better understand
consumers– Grouped on the basis of psychological/personality traits,
lifestyle, or values
Kotler: Canadian Airports - ActualizersLocal: BDO – “We find ways” targeting young professionals who are
“Achievers”RP medical application:
Minimal Invasive Surgeries – for successful people “Achievers” and “Innovators”, Who is willing to avail of latest medical treatments made available in the Philippines (e.g. Stem cell) for Innovators
Concept 7: Psychographic Segmentation
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Consumer Responses
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• Based on knowledge of, attitude toward, use of, or response to a product.– Needs and benefits
– Decision Roles
– User and Usage
– Buyer-Readiness Stage
– Loyalty Status
Kotler: ICI – Selling paints to wife Local: Safeguard – targeting mothersRP medical application: Doctors – Identifying Gatekeepers (Moms)
to improve patient compliance
Concept 8: Behavioral Segmentation
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Combination of Data
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• Kotler: PRIZM (Potential Rating Index by Zip Markets)• Medical: Diagnostic Packages, Medicines for senior
citizens
• Demographic variables are the most important, followed by the operating variables – down to the personal characteristics of the buyer
Concept 9: You can combine data to yield even richer descriptions of consumers
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• Needs-Based Segmentation• Segment Identification• Segment Attractiveness• Segment Profitability• Segment Positioning• Segment “Acid Test”• Marketing-Mix Strategy
Concept 10: Steps in the Segmentation Process
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Market Targeting
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• Undifferentiated/ Mass marketing– Goes after the whole market with one offer– Appropriate when all consumers have roughly same preferences
• Kotler: Model T-Ford has only one color, black• Local: Magic Sarap for Filipino households• Medical: Multivitamin commercials
– High potential, lower cost, lower prices, higher margins
• Differentiated marketing– Groups of consumers with different wants/needs– Fine-tune marketing program/activities
• Kotler/Local: Estée Lauder, Clinique• Medical: Met, skin-whitening products
Concept 11: Selecting market Segments (Targeting)
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• Multiple Segment Specialization– Selective Specialization
– Selects a subset of all the possible segments, each objectively attractive an appropriate
– Little or no synergy• Kotler: Crest Whitestrips
• Product specialization– Selling a product to several different market segments
• Kotler: Microscopes sold to university, government, and commercial laboratories
• Medical: Braun products in medical schools and hospitals (e.g. IV needles)
Concept 12: Selecting market Segments (Targeting)
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• Market specialization– Serving many needs of a particular customer group
• Kotler:
• Local/Medical: Braun medical skills training in medical schools
• Single Segment Specialization– Marketing to only one segment
– Niche - narrowly defined customer group seeking a distinctive mix of benefits within a segment (subsegments)
• Kotler: Porche on sports car market, Volkswagen on small-car market
• Local: Luxury Cars (Ferrari, Maserati)
• Medical: Molecular Medicine
Concept 12: Selecting market Segments (Targeting)
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• Individual Marketing– Ultimate level of segmentation leads to “segments of one,”
“customized marketing,” or “one-to-one marketing”
– Kotler: use of internet: eBay, iTunes, Amazon,
– Local: OLX, Project Pie
– Medical: TMC: Personalized Medicine
Concept 12: Selecting market Segments (Targeting)
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• Target marketing includes three activities: market segmentation, market targeting, and market positioning
• Market segments are large, identifiable groups within a market.• Two bases for segmenting consumer markets are consumer
characteristics and consumer responses.• The major segmentation variables for consumer markets are
geographic, demographic, psychographic, and behavioral. Marketers use them singly or in combination
• To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable
• We can target markets at four main levels: mass, multiple segments, single (or niche) segment, and individuals.
• A niche is a more narrowly defined group. Globalization and the Internet have made niche marketing more feasible to many.
SUMMARY
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Chapter 9: Creating Brand Equity
CO & ESTEBAN2017, ASMPH
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Outline
• What is a brand?• Role of brands• Scope of Branding• Brand Equity• Brand Asset Valuator• Brand Resonance Model• Brand Elements
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Outline
• Brand Elements Choice Criteria: Brand Building• Brand Elements Choice Criteria: Defending• Brand Contact• Internal Branding• Leveraging Secondary Information• Managing Brand Equity: Brand Reinforcement• Brand Extensions• Brand Portfolios
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Concept 1
What is a brand?
Is a NAME, TERM, SIGN, SYMBOL, DESIGN, or some combination of these elements,
INTENDED TO IDENTIFY THE GOODS AND SERVICES of one seller or group of
sellers and to DIFFERENTIATE them from those of competitors
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Concept 1
What is a brand?
Kotler: ESPN
Local: Jollibee
RP medical application:Belo Medical Group
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Concept 2
The Role of Brands
1. IDENTIFY THE SOURCE OR MAKER OF A PRODUCT and allow customers to ASSIGN
RESPONSIBILITY OF ITS PERFORMANCE to a manufacturer or distributor
2. Offers LEGAL PROTECTION for UNIQUE FEATURES OR ASPECTS of the product
3. A credible brand signals a LEVEL OF QUALITY so that satisfied clients CAN EASILY
BUY the product again
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Concept 2
The Role of Brands
Kotler: New Coke vs. Classic Coke
Local: Lucky Me! Pancit Canton
RP medical application:The Medical City
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Concept 3
Scope of Branding
Branding is endowing products and services with the POWER OF A BRAND.
CREATION OF MENTAL STRUCTURES, CLARIFIES THE CUSTOMER’S DECISION
MAKING and, in the process, PROVIDES VALUE TO THE FIRM.
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Concept 3
Scope of Branding
Kotler: Shaun White
Local: Joy Dishwashing Liquid
RP medical application:Manny Pacquiao
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Concept 4Brand Equity
• added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.
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Concept 5Brand Asset Valuator
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?
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CPGs
Clinical Trials
Old Guidelines
Theories
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Concept 6Brand Resonance Model
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Concept 7
Brand Elements
Brand elements are devices, which CAN BE TRADEMARKED, that IDENTIFY AND
DIFFERENTIATE the brand.
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Concept 7
Brand Elements
Kotler: Nike “Just Do It”
Local: Datuputi “Mukhasim”
RP medical application:South Star Drug “Mapagkakatiwalaang Tunay”
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Concept 8
Brand Elements Choice Criteria: Brand Building
1.MEMORABLE – do consumers recall and recognize brand element?
2.MEANINGFUL – is the brand element credible?
3.LIKABLE – how aesthetically appealing is the brand element?
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Concept 8
Brand Elements Choice Criteria: Brand Building
Kotler: Meaningful – Mop & Glo floor wax
Local: Meaningful – Mr. Clean Detergent bar
RP medical application: Meaningful – Lesofat– anti-obesity pills
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Concept 9
Brand Elements Choice Criteria: Defensive
1.TRANSFERABLE – can the brand element introduce new products in the same or different categories?
2.ADAPTABLE 3.PROTECTABLE –Names that are
synonymous with product categories should retain their trademark rights and
not become generic
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Concept 9
Brand Elements Choice Criteria: Defensive
Kotler: Protectable - Kleenex
Local: Protectable - Pampers
RP medical application: Protectable - Robitussin
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Concept 10Brand Contact
• Any information-bearing experience, whether positive or negative, a customer or prospect has with the brand, its product category, or its market.
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Concept 11
Internal Branding
Marketers must now “walk the walk” to deliver the brand promise.
Internal branding consists of activities and processes that help INFORM AND INSPIRE EMPLOYEES about brands.
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Concept 11
Internal Branding
Kotler: Disney – seminars on “Disney Style”
Local: Lamoyan Corporation
RP medical application: Pharma Companies
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Concept 12Leveraging Secondary Information
• Create brand memory by linking the brand to other information in memory that conveys meaning to consumers
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Concept 13
Managing Brand Equity: Brand Reinforcement
A brand needs to be carefully managed so its VALUE DOES NOT DEPRECIATE.
Conveying the brand’s meaning in terms of
(1) products it represents, what core benefits it supplies, and what needs it
satisfies (2) how the brand makes products superior should exist in consumers’ minds.
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Concept 13 Managing Brand Equity: Brand Reinforcement
Kotler: Nivea – product extensions “mild”, “gentle” and “caring”
Local: Yakult – everyday okay
RP medical application: Robitussin – Hagod Robitussin
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Introducing a host of NEW PRODUCTS under their STRONGEST BRAND NAMES.
Concept 14
Brand Extensions
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Concept 14
Brand Extensions
Kotler: Crayola – twistable crayons, biggie crayons
Local: Lucky Me – Calamansi, Spicy, Sweet and Spicy
RP medical application: Buscopan - Venus
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Concept 15Brand Portfolios
Flankers
Low-end
Entry-level
High-end
Prestige
Cash Cows
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• Schools and Scholarships?• Value meals?• Stores in SM?
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Thank You!
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CRAFTING THE BRAND POSITIONING
Turning every product into the best product ever!
Lim, Josephine AlexandraOracion, Vince
Chapter 10
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Outline:
• Positioning• Category Membership• Industry• Red VS Blue Ocean Thinking• Points of Differences• Points of Parity• Brand Mantra• Competitive Advantage• Emotional Branding• Cultural Branding • Brand Journalism
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Concept 1
No company can win if its products and services resemble every other (p.277)
• Kotler– Method products: original idea. Bottle built to let
soap flow out the bottom, so users would never have to turn it upside down
• Local– Mang Inasal: Unlimited rice
• Medical– ASMPH, The Medical City: “Patient Partner”
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Concept 2
Positioning (p.276)
Kotler: Entertainment Weekly, Method Products
Local: Zalora
RP medical application: Belo
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Def’n: defines which other brands competes it with•Kotler
– AT&T, Verizon, Sprint
•Local– Globe, Smart, Sun
•Medical– The Medical City, St Lukes Global, Makati Medical
Center
Concept 3: The competitive frame of reference
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Concept 4
Category Membership (p.277)
Kotler: Pepsi, Cocola
Local: Globe, Smart
RP medical application:Mercury Drug Store, South Star Drug
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Concept 5
Industry (p.278)
Kotler:
Local: Coffee Industry, Fast Food Industry
RP medical application:Pharmaceutical Industry
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• Which of the factors that our industry takes for granted should we eliminate?
• Which factors should we reduce well below the industry’s standard?
• Which factors should we raise well above the industry’s standard?
• Which factors should we create that the industry has never offered?
Concept 6: 4 Questions for Blue-ocean thinking
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Concept 6
Red Ocean vs Blue Ocean Thinking (p.278)
Kotler: Callaway Golf’s “Big Berta”
Local: Smart VS Globe, Uber, C2
RP medical application: Berocca VS Centrum
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Concept 7
Points of Differences (p.280)
Def’n: attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find tothe same extent with a competitive brand.
Must be:- Desirable to consumer- Deliverable by company- Differentiating from competitors
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Concept 7
Points of Differences (p.280)
Kotler: Apple, Nike, Southwest Airlines, VISA vs American Express
Local: Safeguard, SM
RP medical application: ASMPH, TMC
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Concept 8
Points of Parity (p.280)
Def’n: attribute or benefit associations that are not necessarily unique to the brand but may in fact be shared with other brands.
2 types:- Category POPs = must have’s - Competitive POPs = overcome
weakness
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Concept 8
Points of Parity (p.280)
Kotler: Miller Lite Beer, VISA vs American Express
Local: San Miguel Light, Coke Zero, Pepsi Max
RP medical application: Generic Drugs, Diagnostic Packages
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Def’n: It is not uncommon for a brand to identify more than one actual or potential competitive frame of reference•Kotler
– Starbucks vs McDonalds (quick serve); vs supermarket brands (coffee); vs local coffee shops
•Local– Can be the same (Starbucks in the Philippines)
•Medical– Hospitals vs diagnostic clinics; vs wellness clinics; vs
other hospitals
Concept 9: Multiple frames of reference:
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Concept 10
Brand Mantra (p.284)
Def’n: articulation of the heart and soul of the brand and is closely related to other branding concepts like “brand essence” and “core brand promise.
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Concept 10
Brand Mantra (p.284)
Kotler: Nike, Disney
Local: SM
RP medical application: The Medical City
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Concept 11
Competitive Advantage (p.289)
Kotler: Progressive, YouTube
Local: Smart, National Bookstore
RP medical application: ASMPH
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• Employee differentiation– GE, Pfizer, Cisco: better trained employees
• Channel differentiation– Dayton (pet food): besides supermarket, sell also
through vegetarians, breeders, and pet stores
• Image differentiation– Marlboro: macho cowboy
• Service differentiation– Jollibee: fast and cheap
Concept 12: Means of Differentiation
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Concept 13
Emotional Branding (p.290)
Kotler: Crayola, Kellogg’s, Mederma
Local: Mcdo, Dove
RP medical application: Vick’s, TMC
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Concept 14
Cultural Branding (p.292)
Kotler: ESPN Zone Restaurants
Local: PLDT, LBC, Coke Sakto
RP medical application: HPV Vaccine
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Concept 15
Brand Journalism (p.292)
Kotler: Mcdo
Local: Globe, Red Bull
RP medical application: TMC
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• Concept 1: Be different• Concept 2: That special something• Concept 3: Know your playing field• Concept 4: Who can substitute me?• Concept 5: Industry• Concept 6: Enemy VS Frienemy• Concept 7: What makes us unique• Concept 8: What makes us similar• Concept 9: What else are we known for
SUMMARY
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• Concept 10: Credo• Concept 11: What makes you stand out? • Concept 12: How do you stand out?• Concept 13: Tap the feelings!• Concept 14: Tap into society!• Concept 15: Packaging oneself
SUMMARY
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Summary:
• Study yourself and your competitor!• Determine the your playing field – similarities &
differences!• Keep eyes open for all competitors – those close by and
those latent!• Differentiate the brand!• Tap all things possible: emotion, culture!• Create a buzz!!
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CRAFTING THE BRAND POSITIONING
Turning every product into the best product ever!
Lim, Josephine AlexandraOracion, Vince
Chapter 10