module 3 segmentation targeting positioning final.pdf

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MM555 Week 3 Lecture

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MM555Module 3 Segmentation, Targeting & Positioning

Source:http://www.forbes.com/sites/sap/2012/12/03/6-steps-to-executing-a-content-strategy/


Session Outline

Welcome

Review of Module 2

Internal Classes - Activity

Digging Deeper

Module 3: Segmenting, Targeting and Positioning

Break

Learning Activity

Next Steps

Marketing plan group time


Module 3: Learning Objectives

1. Define the main steps in designing a customer-driven marketing strategy:

market segmentation, market targeting, differentiation, and positioning.

2. List and discuss the main bases for segmenting consumer and business

markets.3. Explain how companies identify attractive market segments and choose a

market-targeting strategy.

4. Discuss how companies differentiate and position t heir products for maximum

competitive advantage.






Review of Module 2

Strategic Planning relating to Marketing and delivering

value.

Analysis of Internal and External Environmental Forces

SMART Objectives

Marketing Information Systems and Market Research

Process

4


BRICS, CIVETS & the Next Eleven!Next week we are putting theory into practice

Take note of your assigned country.

o Group 1: China

o Group 2: India

o Group 3: Indonesia

o Group 4: Sub Saharan Africa

o Group 5: Australia

Locate at least 1 report that relates to that country. More if

you can. Bring along next week. We will be exploring

questions such as:o What are the opportunities?

o Where should organisations focus? Which industries? Markets?

o What is required for an organisation to succeed in that market?

This is an in-class activity. Just make sure you havesomething to work with!


Sample Resources

Report| McKinsey Global Institute Manufacturing th e

future: The next era of global growth and inn ovationo http://www.mckinsey.com/insights/mgi/research/productivity_competitiveness_and

_growth/the_future_of_manufacturing

Report| It's a MAD world: How Mobile, Agile, Digital

employees and consumers are reforming Australiao http://www.accenture.com/Microsites/futurebusinesstrends/Pages/trend-one-

video.aspx

Report| The Rise of the African

Consumer o http://www.mckinsey.com/global_locations/a

frica/south_africa/en/rise_of_the_african_co

nsumer






Your Task

Work out a system to review thematerial provided

Identify and synthesise the key issues, risks &opportunities that the class will need to know about.In doing this, you may wish to use one or more of the frameworks discussed regarding preparing aSituation Analysis

Identify where organisation’s should focus their attention and summarise the key success factors.

Put together a 5 minute presentation that wouldserve as the equivalent of an executive summary(but via a presentation) to the class


Presentation

Take no more than 5 minutes You can present in a manner you feel

comfortable (e.g. PowerPoint, materialon a whiteboard, ‘stand-up’ delivery;a musical)

Focus on what the strategic marketingimplications are for your chosen business rather than merely repeating issues you have comeacross

Ensure that you cover the key success factors.

Are there any regional implications?


DIGGING DEEPERIn the News; Out of Academia; Around the Grounds

“In each Module we encourageyou to hunt out the latest news;explore the research and scansocial media for what’s new,what’s important and what haspiqued your interest on the topicof marketing”






…..What Caught Your Eye This Week?Source: http://thisweekin.com


This Week’s Reading….…..Which Ideas Will You Hold Onto?

Bailey, C., Baines, P., Wilson, H. and Clar, M 2009 S egmentation

and customer insight in contemporary services marketing

practice: why grouping customers is no longer enough Journal of

Marketing Management Vol. 25, No. 3-4, pp. 227-252

O'Connell, A. 2008. Buying in: Harvard Business Review Sept

2008 Vol 86 Iss 9.

Court, D. and Narasimhan, L. 2010 Capturing the world's

emerging middle class. McKinsey Quarterly; Issue 3, p12-17, 6p,

1 Diagram, 1 Chart

Yankelovich,D. and Meer,D. 2006 Rediscovering Market

Segmentation Harvard Business Review, Feb

Refer to O’Connell 2008

article? What insights

have you found relating to

what YOU buy and who

YOU are


MODULE 3: SEGMENTATION,

TARGETING & POSITIONING

Understanding the market and creating an identity






Marketing Management Framework

The MM555 Marketing Management Framework drawson a number of sourcesincluding Iacobucci(2013), Armstrong et al (2012) and Gibbs(2009) and includesthe keyfactors which need to be taken into accountwhen developing a comprehensive marketing strategy.

Create Value

Product / Service

People

Processes

Physical Evidence

Capture Value

Price

CommunicateValue

Integrated MarketingCommunications

(includingPromotion)

Deliver Value

Placement Logistics

Customer Consider factors suchas decision making,

values, needs &wants

CompanyOr organisation. What

is our StrategicPurpose? Capabilities?

Weaknesses?

ContextWhat’s going on in

the macroenvironment?

CollaboratorsWho do we work with?Who are our partners?

CompetitorsWho are our current

and potentialcompetitors? Whereare they placed in the

market?

SegmentationBased on geographic,

demographic,psychographic and/or behavioural factors

TargetingConsider strategic fit;potential and defensibility

against competition

Analysis &Strategy

Planning &Implementation

PositioningYour place in the market space

Core benefit propositionUnique selling proposition

Positioning Statement

DifferentiationDifferentiating the marketoffering to create superior

customer value

Implementation, Monitoring &Measuring Outcomes

Marketing isabout creatingcustomer value

and profitablecustomer

relationships

Marketing Objectives

Focusfor

Module

3


Marketing Management Framework

The MM555 Marketing Management Framework drawson a number of sourcesincluding Iacobucci(2013), Armstrong et al (2012) and Gibbs(2009) and includesthe keyfactors which need to be taken into accountwhen developing a comprehensive marketing strategy.

Create Value

Product / Service

People

Processes

Physical Evidence

Capture Value

Price

CommunicateValue

Integrated MarketingCommunications

(includingPromotion)

Deliver Value

Placement Logistics

Customer Consider factors suchas decision making,

values, needs &wants

CompanyOr organisation. What

is our StrategicPurpose? Capabilities?

Weaknesses?

ContextWhat’s going on in

the macroenvironment?

CollaboratorsWho do we work with?Who are our partners?

CompetitorsWho are our current

and potentialcompetitors? Whereare they placed in the

market?

SegmentationBased on geographic,

demographic,psychographic and/or behavioural factors

TargetingConsider strategic fit;

potential and defensibilityagainst competition

Analysis &Strategy

Planning &Implementation

PositioningYour place in the market space

Core benefit propositionUnique selling proposition

Positioning Statement

DifferentiationDifferentiating the marketoffering to create superior

customer value

Implementation, Monitoring &Measuring Outcomes

Marketing isabout creatingcustomer value

and profitablecustomer

relationships

Marketing Objectives

Chpt 1,2,14 Chpt 16 &17 Chpt 15 & 16 Chpt 10,16Chpt 15 & 16

Chpt 3Chpt 14

Chpt 5

Chpt 6,7 & 8 Chpt 9 Chpt 11,12 & 13 Chpt 10

Chpt 16

Chpt 16

Chpt 16


SEGMENTATIONMarket Analysis






Textbook Resource: Kotler, Keller, Burton: Marketing Management © 2009 Pearson Education Australia

Summary of Segmentation, Targeting andPositioning

S

T

P



What is a market segment?

A market segment consists of a group of customers who

share a similar set of needs and wants.


18

http://bit.ly/AtvWOq


Segmentation

18

Segmentationis aboutidentifying groupsthat are similar toone another inBEHAVIOUR(=homogenouswithin)

But identifiedSegments maydiffer from oneanother (=heterogeneousbetween)

Marketers look at theentire set of potentialcustomers andclassify them insimilar groups or ‘segments’

Segments are often defined by more than ONE variable!







Mass Marketing

All customers are treated the same

Is usually more efficient but not effective in

meeting customer needs

Long live Mass Marketing!

Largest potential market

->Lower cost

->Lower prices or higher margins

Mass Marketing is dead!✘Media too expensive✘Markets too proliferated


Toyota’s Segmentation

CRICOS Provider Code 00301J



Segmenting Consumer Markets (B2C) *

Geographic

Demographic

Psychological

(Psychographic) Behavioural

Descriptive

characteristics






VALS

Footer text - slideshow title

http://www.strategicbusinessinsights.com/vals/presurvey.shtml

Take the survey:


B2B compared to B2C Segmentation

Primary distinction between B2B & B2C is the

sources of data are different

23


Concept in Action: Discussion Question

Which variables would you segment on?

24






How to Segment the Market

Begin with understanding the marketplace and then gather

information on the customer’s perspective A segment may look desirable in terms of size and growth but be saturated

with competitors and not consistent with firm goals

25


TARGETINGIdentifying best segment to focus marketing efforts


Evaluation of the Segment. Consider…

1. Data to identify segments?

2. Databases to access segments?

3. Profitability?

4. Fit with corporate goals?

5. Actionable?

Footer text - slideshow title






Segmentation Strategies

28

Breadth strategyServe more thanone segment

Depth strategyServe onesegment well

Tailored strategyDifferent products for different segments



Targeting – Strategic Decisions

Decide to….


POSITIONING STRATEGIES

How to stand stand out from the competition

Source: http://acornbbs.com/wp-content/uploads/2011/09/Rebel-Brown-Quote-Positioning.jpg






30.07.2010Footer text - slideshow title

Writing a Positioning Statement


Perceptual Map of Kellogg’s Products

Premium price

Value for Money

L e s s

N u t r i t i o u s

N u t r i t i o u s

Sustain

All Bran

Coco Pops

Honey n OatBake

Cornflakes

Rice Bubbles

Frosties

Complete

SultanaBran

Nutri-grain

Mini Wheats

Special K


All 4 Ps Matrix

All 4P combinations are possibleHowever, some are more optimal than others

33






Optimal Matches

16 combinations can be reduced to two

34


Optimal Matches Aligned with Gurus

The two extremes in the matrix are consistent with

management gurusTreacy and Wiersema

1. Operational excellence (Southwest)

2. Product leadership (Johnson & Johnson)

3. Customer intimacy (Nordstrom)

Michael Porter

1. Keeping costs down and prices competitive

2. Leading by differentiation

3. Niche positioning

35



STP Process Overview

Communicate to the market

M a r k e t R e s e a r c h






Module 3: Learning ObjectivesChecking In…..

1. Define the main steps in designing a customer-driven marketing strategy:

market segmentation, market targeting, differentiation, and positioning.

2. List and discuss the main bases for segmenting consumer and business

markets.

3. Explain how companies identify attractive market segments and choose a

market-targeting strategy.

4. Discuss how companies differentiate and position t heir products for maximum

competitive advantage.


15 min Break

38


Next Steps Review the Material for Module 4: Consumer Behaviour

Complete the required reading:o Kumar, V., Rajkumar Venkatesan and Werner Reinartz. 2006. "Knowing

what to sell, when, and to whom." Harvard Business Review 84 (3): 131-

137.

o Piskorski, Mikolaj Jan. 2011. "Social strategies that work." Harvard

Business Review 89 (1): 116-122.

o Thomas, Jacquelyn S. 2004. "Getting the most out of all your customers."

Harvard Business Review 82 (7/8): 116-123.

Work on Situation Analysis for Applied Project

Watch for Announcements

Don’t forget to Dig Deeper!

module 3 segmentation targeting positioning final.pdf

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