WHO WANTS WHOLESOME?
WHO WANTS WHOLESOME?
BUSINESS MARKET SEGMENTATION
DEMOGRAPHIC CHARACTERISTICS: group by size based on sales revenues or number of employees
CUSTOMER TYPES: group by broad categories such as industry, types of retailers, categories of F&B outlets
END-USE APPLICATION: group by how business purchaser will use a product
PURCHASE CATEGORIES: group by buyer characteristics, for example centralised vs decentralised purchasing department
THE CONSUMER MARKET (B2C)
markets dominated by products and services designed for the general consumer or end users
also referred to as Business-to-Consumer (B2C) market
eg. NTUC Fairprice (Business) selling to end users (Consumer)
SEGMENTATION, TARGETING AND POSITIONING (STP) STRATEGY
SEGMENTATION: dividing market into meaningful sub-markets based on common characteristics
IDENTIFY SEGMENTATION VARIABLES
GEOGRAPHIC VARIABLES: region, city size, density, climate
DEMOGRAPHIC VARIABLES: age, family size, family life cycle, gender, income, occupation, education, religion, race, nationality, generation
PSYCHOGRAPHIC VARIABLES: lifestyle (activites, interests, opinions), values, personality, social class
BEHAVIOURAL VARIABLES: occasions, benefits sought, user status, usage rate, brand loyalty, readiness stage, attitude towards product
DEVELOP PROFILES OF RESULTING SEGMENTS
TARGETING: prioritising target segments which are most promising
DEVELOP CRITERIA FOR TARGET SELECTION
SEGMENT SIZE: in terms of percentage of total population
SEGMENT GROWTH TRENDS/POTENTIAL: in terms of rise/fall from previous years
SEGMENT STRUCTURAL ATTRACTIVENESS: in terms of income and/or competition (potential substitutes)
SEGMENT COMPATIBILITY WITH COMPANY'S OBJECTIVES AND RESOURCES: in terms of attitude towards company or its products
segment should be dismissed if they do not fit the company's long tern objectives of if the company lack skills and resources needed to meet the needs of the segment. (eg. delivery speed)
SELECT THE TARGET SEGMENT(S)
POSITIONING: developing a marketing mix that will appeal to target market
DEVELOP POSITIONING FOR EACH STATEMENT
IDENTIFY A DIFFERENTIATOR
CHOOSE THE RIGHT COMPETITIVE ADVANTAGE (right differentiator for right target)
DEVELOP POSITIONING USING PERCEPTUAL MAP
DEVELOP A POSITIONING STATEMENT
COMMUNICATE POSITIONING FOR EACH SEGMENT
To (segment), (brand) is (concept) that (differentiator). (Link differentiator to target;s goal).
SEGMENT: who is the target audience?
CONCEPT: what is the brand about?
DIFFERENTIATOR: how is the product/brand different from other companies?
THE BUSINESS MARKET (B2B)
all organisations that buy goods and services to use in the production of other products and services that are sold, rented, or supplied to others
THE BUSINESS CUSTOMER: TOYOTA [car manufacturer]. parties involved are: manufacturing department, IT department, Purchasing department, Accounts department
THE SUPPLIER: KENWOOD [audio equipment manufacturer]. parties involved are: sales executives, marketing executives, hardware engineers, call centre support staff