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CHAPTER 2 (Marketing Strategies (Market Opportunities, Market Segmentation…

- - - - Careful analysis of the marketplace should lead to alternative market opportunities for existing or new product in the market.
      - Companies identify market opportunities by carefully examine the marketplace and noting demand trends.
      - Market opportunities(opportunities analysis) are an analysis of the areas where there are favourable demand trends. Company believes that customers need and opportunities are not being satisfied – thus the company can compete effectively
    - - An analysis on the competition in the marketplace should be carefully conducted.
      - Two type of market competition :-
        
        Indirect brand competition (From the same own brand)
        
        Direct brand competition (from other brands or products)
      - Company should search for competitive advantage – something special/unique/added value a firm does or has that gives it an edge over competitors.
      - Competitive advantage can be achieved by:-
        
        having quality products with better price
        
        providing superior customer service
        
        having the lowest production costs and lower price
        
        dominating channels of distribution
        
        advertising that creates and maintain product differentiation and brand equity
    - - Target market selection can be identified after the firms evaluate its opportunity.
      - Firms can determine weather they want to select one, or more target market.
      - Process -
        
        1) Identifying markets with unfulfilled needs
        
        Marketer (firm) needs to :
        
        Identify the specific needs of groups or people (segment)
        
        Select one or more of these segments as a target
        
        Develop marketing program directed to each of the segment.
        
        Target market identification isolates consumers with similar lifestyles and needs.
        
        The marketer need to increase their knowledge of the consumers specific requirement so that an effective communication program to inform and persuade the consumers of the service/product that meet their needs can be developed.
        
        2) Determining market segmentation
        
        Market segmentation
        
        Dividing up a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action.
        
        Bases for Segmentation
        
        Geographic Segmentation
        
        markets are divided into different geographic units. These units may include nations, states, counties, or even neighbourhoods. Consumers often have different buying habits depending on where they reside.
        
        Demographic Segmentation
        
        Dividing the market on the basis of demographic variables such as age, sex, family size, education, income, and social class.
        
        Psychographic Segmentation
        
        Dividing the market on the basis of personality and/or lifestyles .
        
        Behaviouristic Segmentation
        
        Dividing consumers into groups according to their usage, loyalties, or buying responses to a product.
        
        Benefit Segmentation
        
        In purchasing products, consumers are generally trying to satisfy speciﬁc needs and/or wants. They are looking for products that provide speciﬁc benefits to satisfy these needs. The grouping of consumers on the basis of attributes sought in a product is known as beneﬁt segmentation
        
        3) Selecting a market to target
        
        It is in this stage that marketers attempt to determine as much as they can about the market:
        
        What needs are not being fulfilled?
        
        What benefits are being sought?
        
        What characteristics distinguish among the various groups seeking these products and services?
        
        A number of alternative segmentation strategies may be used. Each time a specific segment is identified, additional information is gathered to help the marketer understand this group.
        
        In order to select a target market, marketer (firm) needs to:-
        
        Determining how many segments to enter.
        
        Undifferentiated marketing
        
        Ignore segment differences and offer just one product/service to the entire market.
        
        Differentiated marketing
        
        Involves marketing in a number of segments, develop separate marketing strategies for each segment.
        
        Concentrated marketing
        
        Firm selects one segment and attempts to capture a large share of this market.
        
        Determine which segments offer potential
        
        4) Positioning through market strategies
        
        Positioning is:-
        
        the art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from the competition.
        
        The position of the product/service/store is the image that comes to mind and the attributes consumers perceive.
        
        This communication occurs through the message itself, which explains the benefits, as well as the media strategy employed to reach the target group
        
        Think of two or more similar products. Are their promotional approach different from their competitors?
        
        Developing a positioning strategy
        
        Positioning by product attributes and benefits
        
        Eg: Kohl’s position its brand as having good value for the right price.
        
        Positioning by price/quality
        
        Positioning by use or application
        
        Positioning by product class
        
        Positioning by product user
        
        Positioning by competitor
        
        Positioning by cultural symbol