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PrinciplesofMarketing.
CourseCode:304.002.301
PositioningthroughMarketingStrategies
Part1
PeterNightscalesMEd,MBA.TheTargetMarketingProcessIdentifymarketswithunfulfilledneedsDeterminingmarketsegmentationSelectingmarkettotargetPositioningthroughmarketingstrategies1. Findingwaystogroupconsumersaccordingtotheirneeds.2.FIndingwaystogroupmarketingactions-usuallytheproductsoffered-availabletotheorganization.3. Developingamarket/productgridtorelatethemarketsegmentstothefirm’sproductsandactions.4.Selectingtheproductsegmentstowardwhichthefirmdirectsitsmarketingactions.5.Takingmarketingactionstoreachtargetsegments.Five-StepSegmentationProcessGeographicSegmentationState-region-country-climateDemographicSegmentationAge-sex-familystatus-education-occupation-income-socialclass.PsychographicSegmentationValues-personalitytraits-lifestyles.BehaviouristicSegmentationUsage,loyalties,buyingresponses.BenefitSegmentationTypesofspecificneedsorwantstobesatisfied.BasesforSegmentation1. Whatpositiondowehavenow?2. Whatpositiondowewanttoown?3. Fromwhommustwewinthisposition?4. Dowehavethemoneytodothejob?5. Dowehavethetenacitytostaywithit?6. Doesourcreativestrategymatchit?SixPositioningQuestionsAttributesandBenefitsPrice/QualityUseorApplicationProductClassProductUserCompetitorCulturalSymbolsPositioningByWhat?
PositioningStrategyDevelopmentProcess1. Identifythecompetitors2. Assessperceptionsofthem3. Determinetheirpositions4. Analyzeconsumerpreferences6. Monitortheposition5. MakethepositioningdecisionIsthesegmentationstrategyappropriate?Aretheresufficientresourcestocommunicatetheposition?Howstrongisthecompetition?Isthecurrentpositionstrategyworking?SegmentationDecisionCheckListUniversalorglobalsegmentsarethosethatgobeyondnationalboundariesandcontainconsumerswithcommonneeds.Regionalsegmentsarethosethatcontainconsumerswithsimilarneedsattheregionallevel.Unique(diverse)segmentsarethosewherethedisparityinconsumerneedsandpreferencesacrosscountriesissolargeastodeterthecreationofcross-bordersegments.SegmentationScenariosDemographicvariablesareamongstthemostpopularsegmentationcriteriaastheyareusuallyeasytoaccess(seefollowingslideforexample).Socioeconomicvariablesrefertothestageofeconomicdevelopmentofacountrywithconsumersincountriesatsimilarstagesofdevelopmentoftenexpressingsimilarwantsandneeds.BasesforcountrysegmentationAsinadomesticsetting,internationalmarketsegmentationallowsthefirmtobreakaforeignmarketintodifferentgroupsofconsumerswhohavesimilarneeds.Segmentsshouldbe:Measurable,easytodefineandmeasure.Sizable,largeenoughtobeworthgoingafter.Accessible,easilyreachedthoughthemedia.Actionable,wheresegmentswillrespondtoaspecificmarketingmixtargetingthem.Othersegmentationissuesare:Competitiveintensityinthehomemarket.Growthpotentialofsegments.ReasonsforinternationalmarketsegmentationAcountryscreeningprocessneedstotakeplacetoidentityattractivemarketopportunities.Internationalmarketingresearchhelpsinmakinginformeddecisions.Onceamarketisdeemedasattractive,marketentry(entrymode)strategiesneedtobeconsidered.Segmentationdecisionsareinstrumentalinsettingacompany’spositioningstrategyforitsproducts.Countrysegmentationwillguideafirm’smarketingmixpolicy.Thereneedstobeabalancebetweenstandardisationandcustomisation.Issuesofproductdesign,pricingpolicy,promotionsanddistributionstrategiesneedtobeconsidered.Reasonsforinternationalmarketsegmentation(cont’d)Insegmentingcountries,marketerscansegmentcountriesonthebasisofasinglemacro-levelfactorsuchasGDPpercapitaoronasetofsocioeconomic,politicalorculturalcriteria.Thesefactorsareofoftenlimiteduseforinternationalmarketers.Disaggregateinternationalconsumersegmentationcanofferanotherwaytoidentifysegmentsthataresimilarintermsofwantsandneeds.InternationalmarketsegmentationapproachesDisaggregateinternationalconsumersegmentationfocusesontheindividualconsumerusingoneormoresegmentationbases;consumersegmentsareidentifiedintermsofsimilaritieswithrespecttotheselectedbases.Two-stageinternationalsegmentationusesafirst(aggregate)stagetogroupcountriesongeneralsegmentationbasesandasecond
(disaggregate)
stagethatusesproduct-specificbases.Thesecondstagecontainsdomain-specificbaseswhicharesegmentationcharacteristicssuchasbrandpenetrationratesorattitudeswhichdependontheparticulardomainorproduct.Internationalmarketsegmentationapproaches(cont’d)Oneincome-basedsocioeconomicapproachconsistsoffivestages:Traditionalsocieties.Theseareeconomicbasketcaseswithhighlevelsofpovertyandilliteracy.Manysub-SaharanAfricancountriesbelongtothisgroup.Preconditionsfortake-off.Thesearecountriesthathavethepreconditionsforthetransitiontothetake-offstage.ExamplesarethePhilippinesandVietnam.Basesforcountrysegmentation(cont’d)Thetake-off.ThesearecountriesexperiencingrapiddevelopmentsuchasThailandandMalaysia.Drivetomaturity.Countriesinthisstageareproducingawiderangeofproductsandservicesaregainingeconomicprominence.ExamplesareSingaporeandSouthKorea.Highmass-consumption.Countrieswithasizeablemiddleclassandsignificantdiscretionaryincomes.ExamplesareAustraliaandGermany.Basesforcountrysegmentation(cont’d)Inconsideringpercapitaincomeofcountriesasameasure,internationalmarketersshouldalsobewaryandconsider:Monetisationoftransactionswithinacountry.Bartertransactionsoftenunderestimatethetruevalueoftransactions.Greyandblacksectorsintheeconomy.Forexample,inUkraineithasbeenestimatedtheblackunrecordedeconomyisthesamesizeasofficiallyrecordedGDP.Basesforcountrysegmentation(cont’d)Percapitaincomemeasuresdon’tcapturewealthdisparitiesinacountry.Forexample,Indiawhichisregardedasapoorcountry(populationonebillion),hasanaffluentmiddleclassofabouta
100millionpeoplewhohavesignificantdiscretionaryincome.
Basesforcountrysegmentation(cont’d)Behaviour-basedsegmentationincludescriteriasuchasdegreeofsupplier/brandloyalty,usagerate(basedonpercapitaconsumption),productpenetration(percentageoftargetsegmentthatusestheproduct).Fornewproducts,firmsmaysegmentonthebasisofthenewproductdiffusionpatterns.Criteriacouldrelatetocountrytraitssuchasthespeedofadoption,thetime-of-salespeak,andthepropensitytoinnovate.Basesforcountrysegmentation(cont’d)Lifestyle(psychographicvariables)relatestoaconsumer’sattitudes,opinions,corevaluesandmodeofliving.Asurveyof1,000peoplein35countriesidentifiedthefollowingglobalvaluessegments:Strivers(23%)emphasisematerialpossessionsandprofessionalgoals.Devouts(22%)upho
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