IMT-N-V-14-CB

Consumer Behavior
Session II
Wednesday, October 8
th
2014
Text Reference:
Chapter 2, Segmentation, Targeting & Positioning
Consumer Behavior, Schiffman Wisenblit -Ramesh Kumar, Pearson Pub.
Learning Objectives
Market Segmentation & Marketing Strategy
1. Value based Marketing
2. Interrelationship between STP
3. Effective STP
4. Base for Segmenting & Targeting
5. Contemporary Marketing Strategies
2
2.1 Delivering Customer Value
Choose the Value
Customer Segmentation
Focus on Target Market
Value Positioning
Provide the Value
Develop Product & Service
Pricing
Sourcing & Making
Distribution & Servicing
Communicate the
Value
Sales Force
Sales Promotion
Advertising
Strategic Marketing Tactical Marketing
VALUE CHAIN
Strategic Planning & Marketing Strategy
Corporate
Level
Defining the Company Mission
Setting Company Objectives & Goals
Designing the Business Portfolio
Strategic
Level
Planning Marketing Strategies for Business Units/ Verticals
Strategic Marketing Plan
Tactical
Level
Planning Functional Strategies for Products
Tactical Marketing Plan
Marketing Strategy
Level Time Period Nature Means Tools of Analysis
Corporate 10+ Years
Strategic
Planning
STP
1) BCG Matrix
2) Michael Porters
5 Forces Model
3) SWOT Analysis
4) Igor Ansoffs
Growth Vector
Matrix
Division 5-10 Years
SBU 2-5 Years
Product 0-2 Years Tactical
Planning
4Ps Marketing Plan
Marketing Plan
Marketing Plan 5 Cs STP 4 Ps
I. Executive Summary
II. Situation Analysis
Customer
Company
Collaborators
Context
Competitors
Segmentation
Targeting
Positioning
Product
Price
Place
Promotion
III. Marketing Strategy
IV. Goals & Projections
Customer
Company
Collaborators
Context
Competitors
Segmentation
Targeting
Positioning
Product
Price
Place
Promotion
V. Tactical Plans &
Implementation Controls
Customer
Company
Collaborators
Context
Competitors
Segmentation
Targeting
Positioning
Product
Price
Place
Promotion
Pp 240. Marketing Plans, Marketing Management, Avinash Kapoor, Cengage Learning
2.2 STP & Inter-relationships
Segmenting:
Who will be my customer?
Dividing market into subsets of consumers with common needs or characteristics
Targeting:
How to approach them?
Selecting prospective customers & pursuing them
One or more segments to pursue
Positioning:
How to entice these customers?
Create distinct image; Choose a value proposition
Differentiate- USP, Position & Communicate
Market Segmentation
Consumer needs differ
Heterogeneity prevails in market
Marketers find homogenous
groups in heterogeneous market
Then offer something different to
each segment
Differentiation helps products
compete
Segmentation helps identify media
accessed
Targeting Segments
Mass (Undifferentiated) Marketing
Serving whole market with one offering
Differentiated (Segmented) Marketing
Several segments with individual marketing mixes
Concentrated (Niche) Marketing
One segment, small product mix, high margins
9
Segment by Segment Invasion Plan
Positioning
Product Positioning = Product differentiation + Communication
Customer co-creation by customer centric organizations
Projecting image of product in consumers mind
Positioning more important than actual product, includes:
Product features & benefits
Quality, price & packaging
Use, user & application
Versus competition
11
Consumer
Personality
Self
Image
Product
Product
Personality
Brand
Personality
2.3 Criteria for Effective Segments/ Targeting
Identifiable Sizeable
Stable Accessible
Congruent with the companys
objectives and resources
2.4 Bases for Segmentation
13
2.5 Contemporary Marketing Strategies
Behavioral targeting
Personalized advertising messages
Tracking online navigation
Tracking Geographical location
Tracking purchase behavior
Micro targeting
Narrowcasting
Email, Mobile
Consumer generated marketing/ content
Product placement
Celebrity endorsements
Segment/ Brand age cycle
14
Chapter 14, Contemporary Marketing Strategies, CB-Kardes,Cline.Cronley, 2008
International edition, Cengage
Contemporary Marketing Strategies
WoM
Consumers talking about brands
Naturally & organically occurring brand talk
Marketer involvement
Buzz Marketing
Campaign designed to generate WoM
Serves commercial interests for a marketer
Viral Marketing
Use of internet to spread WoM & Buzz
Sharing & tagging over social media
Stealth Marketing
Covert Buzz Campaign
Consumer unaware of systematic buzz generation
Chapter 14, Contemporary Marketing Strategies, CB-Kardes,Cline.Cronley, 2008
International edition, Cengage