7/31/2014 “Wearesayingyou'vegottounderstandandchoosethe customersyouwanttoserve.Don'tjustgoaftereveryone. Definethetargetmarketcarefullythroughsegmentation andthenreallypositionyourselfasdifferentandas superiortothattargetmarket.Don'tgointothattarget marketifyou'renotsuperior.” PhillipKotler McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. TheNeedforSTPStrategyinGlobalMarkets GlobalMarketSegmentationStrategies • • • • Country‐based(Macro)Segmentation Consumer‐based(Micro)Segmentation BtoBsegmentation TheLongTail:Everycustomercanbeasegment Targeting CriteriaforTargeting SelectingaGlobalTargetStrategy UndifferentiatedApproach DifferentiatedApproach ConcentratedApproach CustomizedApproach Positioning • Process • Example Summary 9-2 STPallowsmarketerstodeterminethe valuetheirproductorservicecandeliverto customers • Segmentation Identificationofspecifictypesofcustomers • Targeting Identifyingmethodstoreachcustomersegments • Positioning Communicatingvalueinappealingwaystotargeted segments 9-3 1 7/31/2014 Toidentifyandengagetherightcustomer segments,butalsotopreservethetrue identityofthebrandwhileansweringthe needtopositionitinverycustomized, segment‐specificcommunications 9-4 SegmentationisdefinedbytheAmerican MarketingAssociationas“theprocessof subdividingamarketintodistinctsubsetsof customersthatbehaveinthesamewayor havesimilarneeds.” • Theprocessischallenging,however, • Whendonewell,thepracticecangiveafirma substantialcompetitiveadvantage 9-5 Fivecriteriamustbepresentforagroupof customerstobea‘segment.’Eachsegment mustbe: 1. Measurable 2. Differentenoughtowarrantchangesinthe marketingmix 3. Accessiblethroughmarketinganddistribution channels 4. Largeenoughtobeprofitable 5. Stableenoughtoallowforpropertargetingand measurableresponse 9-6 2 7/31/2014 Country‐based,ormacro,segmentation Consumerbased,ormicro,segmentation • Company‐basedsegmentationinthecaseof businesstobusinessmarketscenarios 9-7 Usesgeographic,demographicandsocioeconomic variablessuchaslocation,GNPpercapita, populationsizeorfamilysizetogroupcountries intromarketsegments • Enablesacompanytocentralizeitsoperationsandsave onproduction,sales,logisticsandsupportfunctions • Doesn’ttakeintoconsiderationconsumerdifferences withineachcountryandamongthecountrymarketsthat areclusteredtogether • Failstoacknowledgetheexistenceofsegmentsthatgo beyondthebordersofaparticulargeographicregion 9-8 Consumersaregroupedbasedoncommon characteristicssuchasculturalpreferences, valuesandattitudes,orlifestylechoices • Employspsychographicandbehavioristic segmentationvariables • Certainsegmentsidentifiedtohavethesame characteristicsmaybepresentonaglobalscale, whileothersmaybeparticulartoaspecificcountry orregion 9-9 3 7/31/2014 InsertBox9‐1 9-10 ThebasictenetofVALSisthatpeople expresstheirpersonalitiesthroughtheir behaviors VALSspecificallydefinesconsumer segmentsonthebasisofthosepersonality traitsthataffectbehaviorinthe marketplace. • ArelatedmethodofpsychographyisGlobalScan, whichmeasuresattitudes,consumervaluesand buyingpatterns. 9-11 Figure9‐2 9-12 4 7/31/2014 Severalmajordifferencesareapparent betweentheconsumerandbusiness‐to‐ businesssegmentationprocesses • TheB2Bmarketrarelyexceedsseveralhundred companyclients,whileconsumermarketsnumber literallymillionsofcustomers • Businessvolumefaroutstripsindividualconsumer purchasing • ThedynamicsoftheB2Bpurchasingprocessarefar morecomplex 9-13 Industry Geography Decisionmakerdemographicsandlifestyle Surveyeddata Firmographicsandpaymentbehavior 9-14 Moreofatoolforadvertisingandbranding thaneffectivesegmentationthatguides marketersinfindingmeaningfulgroupsof consumerslikelytobuytheirproduct Marketerstodayarespendingmoreeffort tryingtounderstandcustomers—theirself‐ image,aspirationsandtastes—whenthey shouldbetryingtounderstandthe“jobs”that customersneeddoneandbringtomarket productsthathelpwiththosejobs 9-15 5 7/31/2014 PromulgatedbyChrisAnderson • Technologyisturningmassmarketsintomillionsof niches • Thetrendcreatesa‘longtail’graph Hitssalesrepresentthebulkier,steepertrendline Along,thinning‘tail’ofmanyunknownproductsthathad nochanceofexposurepriortotheweb • Intheonlineworldofunlimitedshelfspace, productscansucceedbycateringtothesespecific niches 9-16 Insert Table 9-2 Thetrendcanbeoptimizedbyglobalmarketers whocontinue marketingtheirmostpopular productstostayprofitable,butbroadentheir portfoliocost‐effectivelytoattractthelongtail audiences 9-17 Marketsize Growthrate Competitiveposition Marketaccessibility Customerfit 9-18 6 7/31/2014 Alsocalledmassor standardized marketing Companyisbasingits marketingonthe commonneedsofits customers,insteadof onthedifferences Evenincommoditizedmarkets,the undifferentiatedstrategyis beginningtofadeawayasglobal competitionintensifies Globalbrandsshare characteristics • Samepositioning worldwide • Singleproductcategory • Companynameisbrand name • Accesstoglobalvillage • Socialresponsibility 9-19 Aimstoadapttheproductandthe marketingmixtoeachtargetmarket segment Mostglobalbrandsuseaversionofthis approachtostaycompetitiveandexpand theirappealtomoremarketsegments throughproductsandadvertisingdesigned specificallyfortheirneedsandtastes 9-20 Figure9‐2 9-21 7 7/31/2014 Concentrated(NicheTargeting) • Companyfocusesintenselyononesegmentofthe marketanddesignsitsmarketingeffortswiththat segmentinmind Decreasedcompetitionanddominantshareare‘pros’ But,lackof‘portfoliodiversification’meansgreaterfinancial risk Customized(Micromarketing) • Deepersegmentationofthetargetmarketandmore nuancedandspecializedproductsandmarketing campaignsaimedatveryspecificsub‐segmentsof consumers Greatlyenhancedbyonlineresearchandcommunication Behavioraltargetinginvolvestrackingthesitesvisitedby internetusersanddisplayingadsrelatedtotheirinterests 9-22 Theconsumercomparessimilarbrandsand productsandcreatesamentalmapofeach relatedtohisorherindividualneedsand wants Themarketer’sgoalistoinfluencethe positionbrandshaveinthemindsof consumersinrelationtocompetitorbrands Successfulpositioningresultsinstrong, long‐termemotionaltiestothebrand 9-23 Throughglobalmarketsegmentation,thesimilaritiesanddifferencesof potentialbuyingcustomerscanbeidentifiedandgrouped Marketerscanusemacroormicroscalesegmentation Totargettheappropriateconsumersegments,marketersmustevaluate andcomparethemonthebasisofmarketsize,growthpotential,market accessibility,competitivepositionandcompatibility Selectingtherightmarkettargetingstrategy,marketersmustdecide whethertouseanundifferentiated,differentiated,concentratedor customizedapproach Marketersstrivetoinfluencethepositiontheirbrandshaveinthe mindsofconsumersinrelationtocompetitorbrands 9-24 8