Mark 302 Week 5

Front 1

Why Segmentation? (6)

Back 1

1.Bettermatching of customer needs2.Enhancedprofits3.Enhancedopportunity for growth4.Retaincustomers5.Targetedcommunications6.Market segmentshare

Front 2

The segmentation, targeting and positioning model: (STP)

Back 2

Market Segmentation --> Target Marketing --> Market Positioning --> Marketing Planning

Front 3

Market Segmentation:

Back 3

1. Identify customer needs and segment of the market

2. Develop profiles of resulting segments

Front 4

Target Marketing:

Back 4

1. Evaluate attractiveness of each segment

2. Select target segments

Front 5

Marketing positioning:

Back 5

1. Identify differential advantage for each segment

2. Formulate marketing mix

Front 6

Marketing planning:

Back 6

1. Develop marketing plan for each segment

2. Develop marketing organisation

Front 7

3 basic market-preference patterns:

Back 7

- Homogeneous preferences

- Diffused preferences

- Clustered preferences

Front 8

Example of a case who uses segment marketing:

Back 8

FedEx: Strategy is to grow through segment marketing, rather than reacting to competitors. Focus on customer behaviour, ROI, integrating product/service offerings. World leader in overnight delivery. Customer satisfaction not enough- have to add value by filling segment needs

Front 9

*Can you think of a product that could be marketed effectively using a mass market approach? If so, explain and justify your answer. If not, what types of changes would have to be made to the product to make it appropriate for a mass marketing approach?

Back 9

Cars? Adapting cars accessories and colours, engines etc?

Front 10

Mass marketing

Segment marketing

Niche Marketing

Micro-marketing

Back 10

Same product to all consumers

Difference products to one or more segments

Different products to subgroups within segments

Products to suit the tastes of individuals or locations

Front 11

Bases for segmenting consumer markets:

Back 11

Geographic: Nations, states, regions or cities.

Demographic: Age, gender, family size, income.

Psychographic: Social class, lifestyle or personality.

Behavioural: Occasions, BENEFITS, uses or responses.

Front 12

What are some of the ethical and legal issues involved in targeting sensitive groups such as children and seniors?

Back 12

Sugar drinks?

Front 13

Market Segmentation Requirements for Effective Segmentation: (5)

Back 13

- Measurable

- Accessible

- Substantial

- Differentiable

- Actionable

Front 14

Evaluating Segment Size and Growth:

Back 14

Analyse sales, growth rates and expected profitability

Front 15

Evaluating Segment Structural attractiveness:

Back 15

Consider effects of: Competitors, Availability of substitute products and the power of buyers and suppliers.

Front 16

Evaluating Company Objectives and Resources:

Back 16

Company skills & resources relative to the segment(s). Look for competitive advantages.

Front 17

Forces that shape segment attractiveness: (3)

Back 17

Market Growth: size, growth rate, market potential.

Competitive Intensity: Number of companies, Ease of entry, substitutes.

Market Access: Customer familiarity, Channel access, company fit

Front 18

Five patterns of target market selection:

Back 18

- Single-segment concentration

- Selective specialisation

- Product specialisation

- Market specialisation

- Full market coverage

Front 19

Positioning means...

Back 19

´Positioningmeans to think and act like the consumer – its how the consumer perceives theproduct.´Act to locatethe brand in the customers’ minds over and against other products in terms ofproduct attributes, benefits, images etc

Front 20

Positioning for Competitive Advantage:

Back 20

Think about product's position and marketers must plan positions to give products the greatest advantage and develop marketing mixes to create planned positions.

Front 21

Product's Position:

Back 21

The place the product occupies in consumer's minds relative to competing products

Front 22

Three key issues in strategic positioning:

Back 22

- Where does the company fit in the product-market?

- And against which competitors?

- Use this position to create priorities and allocate scarce resources.

Front 23

To find out the product positioning? (3)

Back 23

Need to find out what IS in the mind of our customers?

Is it the same as what WE think?

If there is a gap, what changes do we need to make changes?

Front 24

Creating Perceptual Maps:

Back 24

y axis: high price, low price.

x axis: high level service, low level service.

Use average ratings and map where you think you are.

Front 25

International positioning strategies:

Back 25

Uniform: a positioning strategy that is used worldwide by an organisation. e.g. HSBC global strategy

Localised: a positioning strategy that is modified to suit local conditions. e.g. Volkswagon in Aus is premium vs Germany mainstream

Front 26

Global consumer culture positioning:

Back 26

A strategy that positions the brand as a symbol of a given global consumer culture.

Front 27

Local consumer culture positioning:

Back 27

A strategy that positions the brand as an intrinsic part of the local culture

Front 28

Foreign consumer culture positioning:

Back 28

A strategy that positions the brand as possessing specific attractive attributes of a foreign culture.

Front 29

Critically evaluate the arguments for and against the use of country by country versus global market segment descriptors as bases for the segmentation of the global mobile phone gambling market?

Back 29

Country by country is much easier.

Front 30

How can Spike Games develop a global segmentation strategy that could be used as the basis for a global marketing plan?

Front 31

Advise Spoke Games on how they should research the global opportunities to better understand the market for mobile gaming.

Back 31

Are you going to do primary or secondary? Provide advantages and disadvantages of both. Advise how you're going to provide the data. What structure for primary too? Focus group? Questionnaire? Why are you going to interview the country that you are going to interview?

Front 32

In what ways can knowing the beliefs, values and motivations of peipple throughout the world help marketers?

Front 33

How could marketers use the knowledge gained from the WVS (world values survey) to decide which country their organisation should develop business relations with?

Front 34

There are many reasons why it is important for marketers to know wether citizens of a country have traditional values or secular rational values; what are they?

Back 34

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Front 35

Discuss some of the consumer awareness issues associated with halal certification. What are some strategies that an international marketer might initiate to address these issues?

Back 35

Critical to advertise what we have- NZ chicken and creating awareness and value. Going to the Indonesia Ulama Council- use a certification that is really recognised in Indonesia. It’s all about creating trust.

Front 36

How should Hellers adjust their packaged, flavoured sausage range to meet the needs of the Indonesian consumer? How should they position this range of products?

Back 36

Emphasise their awards and their different flavours, play on the fact that they're grass fed, NZ made. Get Halal certification and position as high end, niche product. Preference for peanut and spicy chilli flavours.

Front 37

Hellers is considering marketing their new line of packaged, flavoured chicken sausages in Indonesia. Provide a profile of a potential market segment for this product.

Back 37

Medium-High Income Earners

Busy people living in dense cosmopolitan areas.

Front 38

Recommend a potential distribution channel for Hellers to reach the upper middle class urban consumer in Indonesia.

Back 38

Local import agency as a channel to get to the high end supermarkets e.g. version of Moore Wilsons.

Front 39

What was the halal case about?

Back 39

This case is about how to add value to a raw product. This is something critical that has gone wrong in other industries e.g. milk or honey. Adapt to the local market and the market is a growing economy and they can't meet their own demand so prime market to go to.