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PARTE 2 - Coggle Diagram
PARTE 2
9.Identifying Market Segments and Targets
Target Marketing
; consist of
Segmentation
: Identify and profile groups of buyers
Targeting
: choose which segment to target
Positioning
: choose which benefits establish, communicate and deliver
Segmentation
A market segment is a group of buyers
with
similar needs and wants
Major segmentation
methods
ranging from descriptive to behavioral consideration
Demographic
demographic variables
often associated
with customers needs and wants
Age (
also aspirational
)
Life Stage (
person major's concern, not age-related
)
Gender
Generation
Income
easy to measure
traditionally associated direclty with needs and wants
Psychographic
Psychographics
:
The Science of using Psychology and Demographics to better understand consumers
consumers divided by
personality traits, lifestyle and values
two people in the same demographics group may have very different psychographic profiles
VALS Framework
Main Dimensions:
Motivation
and
Resources
8 primary groups
Geographic
dividing the market into
geographical units
(nations, states, regions, counties, cities, neighborhoods)
pay attention to local variations (
Grassroots Marketing
)
Can be combined with Demographics data to get more accurate and richer informations (
PRIZM, geoclustering
)
Behavioral
Consumers divided on the basis
of
their relationship with the product
Needs and Benefits
(different consumers seek differents benefits for the same product or they are moved by differents needs)
Decision roles
Initiator
Influencer
Decider
Buyer
User
User and Usage
Occasion
User Status
(ex, first-time, potential ecc)
Usage rate
Buyer-readiness stage
(position in the funnel)
Loyalty Status
How Should Business
Markets Be Segmented?
often Marketers use a
Sequential Process
Flexible Market Offering
to cover multiple segments; composed of
Naked Solution
(the core of the offer)
Discretionary options
(elements of personalization across segments)
Market Targeting
How many and which segments to enter
needs-based
market segmentation approach
7 steps
Segment Identification
Attractiveness
Needs Based Segmentation
Profitability
Positioning
Acid Test
Marketing Mix Strategy
Effective Segmentation Criteria
5 criterias
Measurable
Substancial (large and profitable enough)
Accessible
Differentiable
Actionable
Porter's five forces
to determine attractiveness
of a market/segment
Threat of intense segment rivalry
Treath of new entrants
Threat of substitute products
Threat of buyers' growing bargaining power
Threat of suppliers' growing bargaining power
Levels of segmentation
Full Market Coverage
serving all customer groups in a market
Undifferentiated Marketing (mass market, one offering)
Differentiated Marketing (different products to different segments)
Multiple Segments Specialization
unrelated Segments / Supersegment
product specialization (one-fits-all product)
market specialization (many products)
Single Segment Specialization
all efforts to become segment-leader
niches
Individual Marketing
Customized or One-to-one marketing
Mass Customization
10. Crafting the Brand Positioning
Positioning
:
the act of designing a company's offering and image to occupy a distinctive place
in the minds of target market
the final step of STP marketing strategy
a test for good positioning:
brand substitution test
must be
aspirational
balance between what the brand is
and what it could be in the future
results in a good
Value proposition
Choosing a Competitive Frame of Reference
identify competitors
category membership
(products that functions as close substitutes)
not just current competitors, but also aspirational
Industry
and
Market
point of View
Defying competition in traditional
categories and industries
is "
marketing myopia
"
Competitors are not just inside the same industries;
the Market POV suggest that same needs can be satisfied by products/service in different industries
Analyzing Competitors
Gather information about real and perceived
Strenght and weaknesses
SWOT Analysis
Rating Competitors on
Key Success Factors
or
Identify Potential Point of Difference (POD)
and Point of Parity (POP)
POD
:
"attributes and benefits that consumers strongly associate with the brand
"
Desirability (relevant to customers)
Deliverability (able to support the association)
Differentiabilty (Distinctive from competitors)
POP:
attributes and benefits shared with other brands
Correlational POP
: tradeoffs caused by positive association; ex. Premium Quality /
Expensive
Competitive POP
: designed to overcome weaknesses
related to competitors' POD
goal:
break even
on competitors POD
zone of tolerance
the case of
Straddle Positioning
one set of POD and POP for two Frames of reference
allow brands to eexpand market coverage and customer base
Category POP
: attributes and benefits
essential
to legitimate an offering
Choosing Specific POPs and PODs
Usually on
Benefits
Customers are usually more interested in
Benefits
than Attributes
Attributes play a
supportive role
Reasons to Believe
Proof Points
Use of Perceptual Maps
Visual Representation of consumers
perceptions and preferences
Overlay consumer preferences and Brand perceptions can reveal holes and
unmet consumer needs
Brand Mantras
three to five words that capture the
heart and soul of the brand
used to ensure that all employees and partners are on the same page (
internal Purpose
)
Designing a Brand Mantra
Simplify (memorable)
Inspire
Communicate
Establishing a Brand Positioning
communicate the Brand Positioning to everyone in the organization
Brand-Positioning Bull's-eye
Brand Mantra
POPs and PODs
Reasons to Believe (Substantiators)
Values/Personality/Character - Executional Properties/Visual Identity
Communicate to customers
stating the
category membership
first.
3 ways
Comparing to exemplars
Relying on product descriptor
Announcing category benefits
Monitoring Competition
Share of Market
Share of Mind
Share of Heart
Alternative Approaches to Positioning
Brand Narrative and Storytelling
Positioning as telling a narrative or a story
Setting
Cast (role of the brand)
Narrative Arc
Language
Cultural Branding
brand wikification
Positioning and Branding for small business
12. Addressing Competition and driving growth
(COMPETITIVE DYNAMICS)
Growth
is essential for the success of any firm
Growth Strategies
by Building Market Share
by developing committed customers and stakeholders
by Building a powerful brand
by innovating new products, services and experiences
by international expansion
by acquisitions, merges and alliances
by building oustanding reputation for social responsibility
by partnering with government
Growing the Core
:
focusing on their most succesful existing products and markets
new distribution channels
new versions and formats
Make the core as distincitve as possible
Competitive Strategies for Market Leaders
MKT Members
Market Challenger
Market Follower
Market Leader
Market Nicher
1. Expanding Total Market Demand
new customers
MKT Penetration Strategy
(those who might use it but do not)
New Market Segment Strategy
(those who have never used it)
Geographical expansion
Strategy
(those who live elsewhere)
more usage from existing customers
increase the
amount
or
the frequency
of consumption
Additional Opportunities to use the Brand
New ways to use the Brand
2. Protect Current Market Share
Proactive Marketing
towards the customer
anticipative
:
look for needs customers may have in the future
creative
: find solutions customer never asked for but to which they can positively respond
responsive
:
find a stated need and fill it
Defensive Marketing
Preemptive
Defense
:
attack first to keep all competitors off-balance
Counteroffensive
Defense:
face the attacker
frontally or on the flank
excercise of economic or political clout
Flank Defense:
outpost to protect a weak point or support a counterattack
Mobile
Defense:
Stretch domain over new territories
Market
Broadening
(related industries)
Market
Diversification
(unrelated industries)
Position Defense
:
Occupying the most desirable position in consumer's mind
Contraction
Defense:
give up weaker markets and assign resources to stronger ones
3. Increasign Market Shares
the cost of new acquisitions
may exceeds revenues
4 factors to consider first
Economic cost
(optimal Market share)
wrong marketing activities
(ex. cutting costs)
risk of provoking
Antitrust action
effects on
perceived quality
Other Competitive Strategies
for
Nichers
: being a leader in a small market
create, expand and protect the niche
Multiple Niching is essential (niches can weaken)
Risks
dry-up
Attack
for
Followers
Product imitation
to avoid market retaliation (ritorsione)
3 strategies
Cloner
: emulating products, name, packaging with small variations
Imitator
: copying but differentiate
Adapter
: adapt or improve competitors' product
for
Challengers
Define Objective and
Opponents
market leader
same-size firms
status quo
small local and regional firms
Choosing a
General Attack Strategy
Frontal Attack
:
match the opponent's product,
advertising, price, distribution
Flank Attack
:
serve uncovered market needs
Encirclement Attack
:
attack on several fronts
Bypass Attack
:
attack easier markets
unrelated products
other geographical areas
leapfrogging tech
Guerrilla Attack
:
small, itermittent attacks, both conventional and unconventional
less cost
must be supported by big attack
Choosing a
Specific Attack Strategy
Product Life Cycle Marketing Strategies
Product Life Cycle
Introduction
Growth
Maturity
Decline
categories
of life Cycles
Styles
Fashions
Fads
Strategies
Introduction Stage
Slow Sale growth, negative profits
MKTG Strategies
Create Awareness
Induce product trial
Secure retail distribution
Pioneering advantages and drawbacks
Growth Stage
Rapid sales growth, new competitors
add features, improve quality
Add new models and flankers product
enter new market segments
Increase distribution coverage
Lower price
Maturity Stage
Growth slows, weak competitors exit
Maximixe profit
Defend Market Share
Marketing program modification
Decline Stage
Slow sales growth, negative profits
Rejuvenate
: adding features
Harvest
:
cut costs to maximum and trying mantain sales
Divest
:
sell the brand to other firms or liquidate the brand (slowly or quickly)
Marketing in a Slow Growth Economy
Upside of Increasing Investment
Get closer to Customers
Review Budget allocation
Efforts on Compelling Value Propositions
Fine-tune brand and Product offerings
15. Introducing new Market Offerings
New Products Options
variety of types of new products and ways to create them
Make or Buy
Acquisition (companies, patents, franchise)
Development
Types
wide range form new-to-the-world to minimal-improved products
Fewer than 10% of all new product are truly new or innovative
(more expensive to make and higher risks)
Challenges in New Product Development
The Innovation Imperative
In an economy of rapid change,
continuous innovation
is a necessity
New Product Success
Established Companies focus on
incremental innovation
Newer Companies focus on
disruptive technology
New Product Failure
95% of all new products fail (USA, 90% in Europe)
Cause of failure
Fragmented Market
Social, economic, government costraints
Cost of Development
Capital Shortage
Development time
Bad launch timing
Shorter product life cycle
Lack of Organizational support
truly innovative firms accepts failure
as part of what's neccessary to be successful
Organizational arrangement
often companies use customer-driven approach for product development
Budgeting
R&D Outcomes are very
uncertain
; different approaches
Organizing
many approaches
Venture Teams
cross-functional group
relieved from other duties
Skunkworks setting
Communities of practice
groups (often on the Internet)
Employees from different department
can share knowledge and skills
cuncurrent
product development
Crowdsourcing
paid or unpaid
external participants
provide
expertise and different perspectives
Stage-Gate Systems
dividing the development process into
stages
with a
checkpoint
at the end of each
Senior manager review the work at each checkpoint
go
kill
hold
recycle
Managing the Development Process
Ideas
Generating Ideas
Interacting
with groups
Employees
Outsiders
creativity
techniques
Attribute-listing
Forced Relationships
Morphological analysis
Reverse-assumption analysis
New contexts
Mind-mapping
Studying
Competitors
Ideas Screening
:
drop poor ideas as early as possible
weighted index method
promote discussion and evaluation, not making the decision
the goal is to avoid
DROP Errors
the Opposition Forces
Concept to Strategy
Concept Development
from a
product idea
can be developed
many
product concepts
the
product concept
:
elaborated version
of the product idea expressed in consumer terms
target?
primary benefits?
consumption occasions?
Product and Brand positioning
through perceptual maps
Concept Testing
cost for prototyping decreased
(rapid p. and virtual reality)
concept
presented
to consumers testers,
looking for
feedbacks
Communicability and believability
Need Level
Gap Level
Perceived Value
Purchase intention
User targets, purchase occasions, purchasing frequency
Conjoint analysis
method to measure the utility value that consumers attach to varying levels of a product's attribute
using statistical programs to derive the
consumer's utility functions
Marketing Strategy Development
after the testing, product manager develops
a preliminary strategy plan
Business Analysis
estimating total sales
First-time sales
Replacement sales
Repeat sales
estimating costs and profits
Development to Commercialization
a
Phisical Prototype
is made
Customer Tests
Alpha Test
(within the firm)
Beta Test
(customers)
Market Testing
Consumer-Goods
Sales-Wave Research
Simulated Test Marketing
Controlled Test Marketing
Test Markets
Business-Goods
Commercialization
When
(timing)
Parallel Entry
Late Entry
First-Entry
Where
(geographical Strategy
market roll-out)
To Whom
(early adopters, heavy users, opinion leaders)
How
(introductory market strategy)
The Consumer-Adoption Process
Adoption
:
the individual decision
to become a regular user of a product
Stages
Evaluation
Trial
Interest
Adoption
Awareness
Influencing Factors
Readiness; Personal
level of innovativeness
5 groups of people
Early Adopters
Early Majority
Innovators
Late Majority
Laggards
Characteristics of innovation
Relative Advantage
Compatibility
Complexity
Divisibility (able to try)
Communicability
