Marketing Management Olga DURSUN Segmentation Targeting Positioning

Marketing Management Olga DURSUN Segmentation Targeting Positioning

STP Where does segmentation fit in? Olga Dursun 2

STP Segment market: Divide larger market into groups of people with similar demands and respond similarly to marketing stimuli Target segment: Evaluate segments and select one or more segments to enter Positioning: Create clear, distinctive, and desirable place relative to competing products in minds of target customers Olga Dursun 3

WHY SEGMENT? Why should companies segment the market? • Necessary for designing a successful marketing strategy • Identifies groups of consumers to whom a company could effectively ”target”marketing efforts • Costs Olga Dursun 4

DIMENSIONS ON WHICH TO SEGMENT CONSUMER MARKETS Olga Dursun 5

THE VALS SEGMENTATION SYSTEM Establishes primary and secondary types for consumers based on two dimensions: Self-orientation Resources • VALS survey Olga Dursun 6

THE VALS SEGMENTATION SYSTEM VALS™ is a global segmentation methodology. The VALS global prototype shows basic contrasts—primary motivation—in each country. Strategic Business Insights builds systems for specific countries to accommodate cultural differences in the relationship between attitudes and behaviors as they exist. As a result, segment descriptions are country specific. Clients use VALS most frequently for: Strategic planning Consumer insights Communication. Olga Dursun 7

THE VALS SEGMENTATION SYSTEM About VALS™ Good marketing is inspired by good insights. Good insights about customers come from more than just product or service category or brand behavior—and from more than just demographics. . Olga Dursun 8

CHINA VALS • China VALS segments Chinese citizens between the ages of 15 and 64 into one of nine consumer groups on the basis of primary motivations: Tradition, Achievement, and Self-Expression. • The sample frame consists of 62 areas that cover major geographic regions, different tier cities (one to four), and villages. China VALS projects to 516 million people. This figure is an estimate and does not include rural poor (people earning less than about $2. 50 per day), floating migrants, and people living in dormitories. Olga Dursun 9

CHINA VALS Olga Dursun 10

China's Consumer Groups • • • Accomplisheds seek strategic advantages to improve their position in society. They do not wish to call attention to themselves. Pacesetters want to be recognized by peers and to be seen as having a role or social position; they may even want fame. Preservers provide a counterbalance to the wave of ambition, the pursuit of money, and the desire for power in society. Sustainers are loyal to a traditional way of life, even though in aspects of their daily life, they may look like other groups that are not traditional. Traditional Achievers want to keep up with upwardly mobile Chinese but feel insecure about how and whether to do so. Trendy Achievers have the greatest desire to be seen as successful and worthy of admiration. Experiencers seek personal advancement and look for innovative ways to move ahead in a career or area of interest. Adapters are similar to Experiences but do not have the explicit drive for personal advancement or exploration. Most Provincials live in rural villages. They believe that having children and being financially responsible are important aspects of success. Olga Dursun 11

UK VALS FRAMEWORK Olga Dursun 12

US VALS FRAMEWORK Olga Dursun 13

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REQUIREMENTS FOR EFFECTIVE SEGMENTATION Note: Marketer does not truly segment the market in an “active” sense Differences between consumer groups logically exist before the segmentation analysis is done Olga Dursun 16

MARKET SEGMENTATION LEVELS OF MARKET SEGMENTATION Segmentation can be carried out at several different levels Olga Dursun 17

TARGETING This is the process of selecting the segment to serve The firm’s goals and strengths must fit with the needs of the segment Olga Dursun 18

POSITIONING Act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market Olga Dursun 19

THE POSITIONING STATEMENT A good positioning statement must include the following elements: “Among [target market], [brand name] is the brand of [competitive frame], that [point of difference/single most important claim] because [reason to believe]. ” Olga Dursun 20

THE POSITIONING STATEMENT A good positioning statement answers three questions: 1. Who are the customers? 2. What is the set of needs that the product fulfills? 3. Why is the product the best option to satisfy those needs? Olga Dursun 21

INDIVIDUAL WORK • Go to the store / supermarket / market • Choose a Product appealing to you • Write a Positioning statement Olga Dursun 22

INDIVIDUAL WORK CRITERIA • • • Power Point Slides (the format to be enclosed) Language: both RU and ENG is allowed Deadline: Monday night Feb’ 20 To: Olga. Dursun@gmail. com Subject: MM Assignment 1 Olga Dursun 23

INDIVIDUAL WORK CRITERIA • • • Power Point Slides Language: both RU and ENG is allowed Deadline: Monday night Feb’ 20 To: Olga. Dursun@gmail. com Subject: MM Assignment 1 The best assignment to be rewarded Olga Dursun 24

PPT slide example PHOTO OF THE PRODUCT 1 PHOTO OF THE PRODUCT 2 1. Who are the customers? 2. What is the set of needs that the product fulfills? 3. Why is the product the best option to satisfy those needs? Olga Dursun 25

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