target marketing
DESCRIPTION
Target marketingTRANSCRIPT
TARGET MARKETING
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
At the end of this module the learning outcomes are.
1. Why there is a need to segment markets?
2. What are the various levels of market segmentation?
3. What are bases for segmenting consumer markets?
4. How the markets are targeted?
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
SUGGESTED READINGS
1. Marketing Management by Philip Kotler, chapter 9 &10th edition.
2. Marketing Management by Ramaswami and Namkumari, Chapter 6.
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
MARKET SEGMENTATION The need
Cannot serve all customers of this universe.
No company has that kind of resources. Customers
Too numerous Diverse in their buying requirement
Need to identify the market segments that it can serve more effectively
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
MARKET SEGMENTATION.
- The universe is heterogeneous.
- Divide the universe into market segments, where buying or need requirements is same i.e. homogenous.
- Attack one or few market segments.
- This is target marketing.
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TARGET MARKETING
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Steps in the Targeting Process:
Market Positioning
Market Targeting
Market Segmentation
TARGET MARKETING
Target marketing requires marketers to take three major steps:
Identify and profile distinct groups of buyers who differ in their needs and preferences (market segmentation).
Select one or more market segments to enter (market targeting).
For each target segment, establish and communicate the key distinctive benefit(s) of the company’s market offering (market positioning).
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Mass Marketing Seller engages in mass production.
Mass distribution.
Mass promotion of one product for all buyers.
Example
Coke in 60 & 70s, Sold in India
One size 200 ml.
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Arguments for mass market. Creates largest potential market Leads to lower cost Lead to lower prices. Higher margins
Why criticised Market fragmentation Splintering of the market Mass media proliferation. Distribution channel proliferation
Difficult to practice “one size fits all’’ marketing.
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USING MARKET SEGMENTATION
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Segment MarketingSegment Marketing
Niche MarketingNiche Marketing
Local MarketingLocal Marketing
Individual MarketingIndividual Marketing
Levels of Micromarketing
MARKET SEGMENTATION AND SELECTING TARGET MARKETS
MARKET SEGMENTATION LEVELS 1. Segment Marketing
Consists of a large identifiable group within a market with similar wants, purchasing power, attitudes or buying habits
Each segment’s buyers are assumed to be quite similar in needs /wants
No two buyers all alike Flexible market offerings
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Flexible market offering consists of two parts
1. Naked solution - Consists of products and service
elements that all segment members value
2. Options - That some segment members value- Each option carries additional prices.
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Example – Segment Marketing Delta Airlines
Economy Class passenger - Seat - Food - Soft Drink
All of them – naked solution Charges extra
- Alcoholic beverages - Earphones
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Segment marketing – benefits- More fine tuned product- Price it appropriately for the target
audience - Fewer competitors - Easier choice of
• Distribution channels • Communication channels
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Niche marketing - Narrowly defined group- Needs are not well serviced - Seeking a distinctive mix of
benefits - Fairly small market size - Normally attract one or two players - Customers willing to pay a
premium price.
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
1. High end designer wear like Gucci, Chanel, Tarun Tahiliani etc.
2. Automobiles like Ferrari, Maserati, Lamborghini etc.
WHAT IS A NICHE TODAY MAY BECOME A SEGMENT TOMORROW AND VICE VERSA!!
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2. Ostrichesonline.com - Selling Ostrich derived products - On line - 2 million $ sales in 1998- Visitors can buy
Ostrich meat Feathers Leather jackets Videos Eggshells Skin care products derived from ostrich Body oil
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
3. Local marketing - Needs of local customer groups
Example Kraft Cheese Helps supermarket chains Identify cheese assortment and shelf
layout Optimise cheese sales in
- Low- Middle- High income stores - Different ethnic groups
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
4. Individual marketing - Ultimate level of segmentation - Segment of one.- One-to-one marketing.- Customised to individuals - Tailor made- Cobbler designed shoes.- Customised industrial products
Use of new technologies - Computers.- Databases
Customised offering.
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Example
1. Dilip Chhabria -Designer cars
- Customised cars
- Small market
- About 500 a year
- Each car is unique, high prices
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Turning to Mass customisationIt is the ability to prepare on a mass basis
individually designed products and communication to meet each customer’s requirements.
Example.Levi’s Jeans
- Customer measurements.- Jeans ready in 8 hrs.
Mattel Barbie com Design your own Barbie doll.
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
- Choose Doll’s • Skin tone • Eye colour • Haircolor.• Clothes • Accessories • Her likes and dislikes.
- When Barbie delivered.• Doll’s name on the package• Computer generated paragraph about her
personality
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USING MARKET SEGMENTATION
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Basic Market-Preference Patterns
USING MARKET SEGMENTATION
Segment profitability
Segment positioning
Needs-based segmentation
Segment identification
Segment attractiveness
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Needs-based Segmentation Process
SEGMENTATION
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Measurable Actionable
Substantial Accessible
Differentiable
Characteristics of Effective Segments
SEGMENTING CONSUMER MARKETS
Nation or country State or region City or metro size Density Climate
Bases for Segmentation
Geographic Demographic Psychographic Behavioral
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
Example GeographicFord Ikon in India
1. World car
2. Changes for India 1. Higher suspension
2. Larger size air conditioner, higher ambient temperature
3. Lower average speeds
4. Handle adulterated fuel
5. Petrol / diesel adulterated with kerosene
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SEGMENTING CONSUMER MARKETS
Age, race, gender Income, education Family size Family life cycle Occupation Religion, nationality Generation Social class
Bases for Segmentation
Geographic Demographic Psychographic Behavioral
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SEGMENTING CONSUMER MARKETS
Lifestyle Activities Interests Opinions
Personality Core values
Bases for Segmentation
Geographic Demographic Psychographic Behavioral
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
a. Lifestyle Nestle Classic
- Pleasure of making coffee
Adding milk, sugar, coffee in hot milk
Nestle “3 in 1 - Office goers- Paucity of time - Espresso feeling - Milk sugar coffee premixed
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b. Personality - Targeting consumer personality
- Customer of Ford Independent Impulsive Masculine Alert to change Self confident
- Customers of Chevrolet Conservative. Thrifty Prestige. Conscious. Avoid extremes
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MARKET SEGMENTATION AND SELECTING TARGET MARKETS
C. VALUES
Tourists to Disneyland
• Fun seekers
• Families visit
Tourists to Udayan child welfare unit at Kolkatta
• Stay and meet poor children
• Share thoughts
• Donate
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SEGMENTING CONSUMER MARKETS
Occasions Benefits User status Usage rate Loyalty status Buyer-readiness Attitude
Bases for Segmentation
Geographic Demographic Psychographic Behavioral
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SEGMENTING CONSUMER MARKETS
Multi-attribute segmentation via geoclustering combines multiple variables to identify smaller, better-defined target groups
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MARKET TARGETING STRATEGIES
Evaluating and selecting market segments requires assessing the segment’s overall attractiveness in light of company’s objectives and resources.
Five patterns of target market selection can then be considered.
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MARKET TARGETING STRATEGIES
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Five Patterns of Target Market Selection
MARKET TARGETING STRATEGIES Targeting multiple segments may
result in cost economies Higher costs using differentiated
marketing include: Product modification cost Manufacturing cost Administrative cost Inventory cost Promotion cost
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For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants)
Email :[email protected]
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar,
New Delhi India Postal Code-110015