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Market Segmentation
Represents an effort to identify and categorize groups of customers and countries according to common characteristics
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Targeting
The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond
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Demographic Segmentation
Income Populations Age distribution Gender Education Occupation
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For products whose price is low enough population is amore important variable
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Segmenting by Population
Urban India is getting saturated. In the cities, everyone who can afford a television has one. If you want to maintain high growth, you have to penetrate into rural India. - K. Ramachandran, Chief Executive Philips Electronics India
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Age Segmentation
Global Teens young people between the ages of 12 and 19
A group of teenagers randomly chosen from different parts of the world will share many of the same tastes
Global Elite affluent consumers who are well traveled and have the money to spend on prestigious products with an image of exclusivity
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Psychographic Segmentation
Grouping people according to attitudes, value, and lifestyles
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Ethnic Segmentation
The population of many countries includes ethnic groups of significant size 3 main groups in the US include: AfricanAmericans, Asian-Americans, and Hispanic Americans
Mexican households in California have after-tax income of $100 billion, half the total of all Mexican Americans. The number of Hispanic teens is projected to swell from 12 percent of the U.S. teen population to 18 percent in the next decade.
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Example:
To young, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. With Mountain Dew, you can stay alert and keep going even when you havent been able to get a good nights sleep.
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9 Questions
Who buys our product? Who does not buy it? What need or function does it serve? Is there a market need that is not being met by current product/brand offerings? What problem does our product solve? What are customers buying to satisfy the need for which our product is targeted? What price are they paying? When is the product purchased? Where is it purchased?
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Positioning
Locating a brand in consumers minds over and against competitors in terms of attributes and benefits that the brand does and does not offer
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Global Positioning
High Tech Positioning Products that Solve a Common Problem
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Positioning Strategies
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Return
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Potential Competition
Is there strong competition in the market segment currently? Is the competition vulnerable in terms of price or quality?
Return
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