Project 2

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Project 2
Marketing Analysis Research (MAR3613) By
Kanghyun Yoon

• Segmenting, Targeting, and Positioning Analysis

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Marketing Management Process

• Stage 1 Identifying business opportunities or
  problems.
• Designing business portfolio to identify business
  opportunities or problems.
• Implement SWOT analysis to diagnose the strategic
  fit between companys capabilities to serve its
  customers and the changing market environment.
• Stage 2 Market Segmentation, targeting, and
  positioning.
• Dividing the total product market into some
  segments that have homogeneous needs and choosing
  the best segment(s) to serve.
• Identify possible competitive advantages of its
  product using market positioning strategy.
• Stage 3 Understanding the customers.
• Requiring careful customer analysis since
  companies cant serve profitably all customers.
• Stage 4 Developing a marketing mix.
• Designing a competitive marketing strategy by
  blending product, price, promotion, and place
  tools.
• Stage 5 Managing the marketing efforts.
• Measuring and evaluating the results of marketing
  strategies and plans.

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Marketing Management Process
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Segmentation, Targeting, and Positioning
6. Develop Marketing Mix for Each Target Segment
Market Positioning
5. Develop Positioning for Each Target Segment
4. Select Target Segment(s) Using Several
Criteria
Market Targeting

• Evaluate Attractiveness of
• Each Segment Using Measures

2. Develop Profiles of Resulting Segments
Market Segmentation
1. Identify Bases for Segmenting the Market
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Step 1 Market SegmentationBases for Segmenting
Consumer Markets
Geographic
Nations, states, regions or cities
Demographic
Age, gender, family size and life cycle,
or income
Psychographic
Social class, lifestyle, or personality
Behavioral
Occasions, benefits, uses, or responses
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Using Multiple SegmentationBases
Geodemographics
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Step 1 Market SegmentationRequirements for
Effective Segmentation
Measurable
Accessible

Substantial

• Size, purchasing power, profiles
• of segments can be measured.

• Segments must be effectively
• reached and served.

Differential

• Segments must be large or profitable
  enough to serve.

Actionable

• Segments must respond differently
  to different marketing mix elements actions.

• Must be able to attract and serve
  the segments.

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Use of Market Structure Map

• To serve customers effectively, marketers should
  understand
• The needs, the attitudes, the purchasing
  behaviors of customers are different.
• Companies can serve only some segments in which
  they are in better position than competitors.
• Therefore, each company must divide up the total
  product market, choose the best segment(s), and
  design strategies for profitability serving
  chosen segment(s).
• Market structure map allows marketers to identify
  possible segment(s), each of which customers have
  homogenous needs.
• Benefits of market structure map
• Be able to segment the total product market.
• Be able to identify consumers homogenous needs
  in each segment.
• Be able to identify the names of competing brands
  and their current market positions (e.g., market
  leader, challenger, follower, and nicher)
• Be able to understand the product line strategy,
  including where to introduce a new product.

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Market Structure Map

• The Carbonated Soda Product Market
• Following an industry standard of using benefit
  segmentation, a product
• market is divided into several segments, as
  shown below.
• Next, develop profiles for each segment. We
  identify needs of customers
• and competitors in each segment.

My brand
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Market Structure Map
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Sources of New Product Idea
Type One
Type Two
Type Three
White color current situation Yellow color New
situation
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Step 2 Market TargetingEvaluating Market
Segments

• Market Size Growth
• Analyze sales, growth rates, and expected
  profitability.
• Structural Characteristics
• Consider the effects of competitors, availability
  of substitute products, the expectation of market
  saturation, entry/exit barrier, environmental
  changes, and so on.
• Strategic Fits
• Company objectives, company skills resources
  relative to the segment(s), current image,
  competitive advantages, and so on.

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Step 3 Positioning for Competitive Advantage

• Many ads claims are the careful efforts of
  companies to exhibit the benefits they offer
  through product and to differentiate themselves
  from competition.
• Product features are important, but what is more
  important is the subjective benefits or values
  that customers perceive.
• So, we need to consider the position of a product
  in consumers minds, e.g., the place the product
  occupies, relative to competing products.
• For example, Volvos positions on safety.
• Marketers should develop an effective positioning
  strategy for both an existing and a new product.
• Positioning strategy should deliver a message
  that my product delivers the benefits the
  customers want and it is better than competitors
  products.
• A key tool for benefit positioning perceptual
  maps and value maps.

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Three Levels of Product
Augmented Product
Installation
Packaging
Features
Brand Name
Delivery Credit
After- Sale Service
Core Benefit or Service
Quality Level
Design
Warranty
Core Product
Actual Product
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Key Components of Perceptual Maps

• Perceptual maps are useful
• They visually summarize the dimensions that
  customers use to perceive and judge products.
• They allow us to identify how competitive
  products are placed on those dimensions.
• Marketers should know
• The number of dimensions
• The names of those dimensions
• What more detailed customer needs make up the
  dimensions
• Where competition is positioned
• Where there are gaps for a new product to fill

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Sources of Competitive Advantages
Product Class
Product Attributes
Away from Competitors
Benefits Offered
Usage Occasions
Against a Competitor
Users
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How to Draw A Perceptual Map

• Stage 1 Determine the number of dimensions, each
  of which represents a primary need.
• Two-dimensional perceptual map (easy-of-use and
  effectiveness for communicational services).
• Three-dimensional perceptual map (speed, easy of
  travel, and psychological comfort for
  transportation services).
• Image/profile map or snake map It uses several
  lines connecting the ratings.
• Stage 2 Develop the names of all dimensions.
• Each dimension can be single variable (e.g.,
  quality) or a composite measure that includes
  several variables (e.g., quality var1 var2
  . ).
• Stage 3 Develop a survey questionnaire to
  collect data of each dimension across competing
  brands.
• Stage 4 Calculate score of each dimension across
  brands.
• Stage 5 Locate the calculated points over the
  dimensions for each brand.
• Stage 6 Suggest ideas of current competitive
  situations and develop new product strategy after
  finding the gaps for a new product.

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Reference

• Kotler, Philip (1997), Principles of Marketing
  Management Analysis, Planning, Implementation,
  and Control, 9th ed., Prentice Hall. (see chapter
  9)
• Kotler, Philip and Gary Armstrong (2004),
  Principles of Marketing, 10th ed., Prentice Hall.
  (see chapter 8)
• Lilien, Gary L and Arvind Rangaswamy (1998),
  Marketing Engineering Computer-Assisted
  Marketing Analysis and Planning, Addison-Wesley.
• McDaniel, Carl and Roger Gates (2004), Marketing
  Research Essentials, 4th ed., John Wiley Sons,
  Inc.
• Urban, Glen L. and John R. Hauser (1993), Design
  and Marketing of New Product, 2nd ed.,
  Prentice-Hall. (see chapters 8-11)
• Zikmund, William G. (2003), Essentials of
  Marketing Research , 2nd ed., Thomson
  South-Western.