Psychographic
Lifestyle or Personality
Behavioral
Occasions, Benefits, Uses, or Attitudes
Bases for Segmenting Business Markets
• • • • • Demographic Operating Variables Purchasing Approaches Situational Factors Personal Characteristics
Challenges in NPD
• • • • • • • Idea Shortage Fragmented Markets Social & Governmental Constraints Cost Capital Shortage Need for Speed Shorter Product Life Cycles
Analyzing Competitors
Objectives Strategies Competitor Actions
Reaction Patterns
Strengths & Weaknesses
Competitor’s Expansion Plans
Markets
Individual Users
Product Differentiation
Form
Features
Performance
Quality
Conformance Quality
Durability
Reliability
Repairability
Style
Design
Services Differentiation
Ordering Ease
Institutional Markets
Low Budgets Captive Patrons
Government Markets
Domestic Suppliers Cost Minimization Paperwork Public Review Open Bids
Objectives
• • • • • Identifying Competitors Evaluating Competitors Competitive Intelligence Systems Competitive Strategies Customer vs. Competitor Orientation
Balance
Customer
+ ID opportunities + Long-run profit + Emerging needs & groups
Competition
+ Fighter orientation + Alert + Exploit weaknesses - Reactive
Objectives
• • • • Challenges in New Product Development (NPD) Organizational Structure & NPD Stages & Management of NPD Diffusion & Adoption of New Products
Decline Stage
• • • • • Decrease investment Resolve uncertainties - stable investment Selective niches Harvesting Divesting
Market Evolution
• • • • Emergence Growth Maturity Decline
High High Low
Rapidskimming strategy
Slowskimming strategy
Price
Low Rapidpenetration strategy Slowpenetration strategy
Maturity Stage
• Market Modification • Product Modification • Marketing-Mix Modification
Objectives
• Identify Differentiating Attributes • Choosing & Communicating Effective Positioning • Marketing Strategies Along the Product Life Cycle • Marketing Strategy & Market Evolution
Media Atmosphere
Symbols
ቤተ መጻሕፍቲ ባይዱEvents
Important
Profitable
Distinctive
Differences Worth Establishing
Affordable Preemptive Superior
designing the company’s offering and image to occupy a distinctive place in the the target market’s mind. P 298
Objectives
• Identifying Market Segments • Choosing Target Markets
Market-Segmentation Procedure
Survey
– Motivations – Attitudes – Behavior
Analysis
– Factors – Clusters
Industry Competition
• Number of Sellers - Degree of Differentiation • Entry, Mobility, Exit barriers • Cost Structure • Degree of Vertical Integration • Degree of Globalization
Effective Segmentation
Measurable Substantial Accessible
• Size, purchasing power, profiles of segments can be measured. • Segments must be large or profitable enough to serve. • Segments can be effectively reached and served. • Segments must respond differently to different marketing mix elements & actions. • Must be able to attract and serve the segments.
Differential Actionable
Additional Segmentation Criteria
• Ethical Choice of Market Targets • Segment Interrelationships & Supersegments • Segment-by-Segment Invasion Plans • Intersegment Cooperation
Commercial & Industrial Educational
Products
Personal Computers
Hardware Accessories Software
Dell
Hypothetical Market Structure & Strategies
Market leader Market challenger Market nicher Market follower
Profiling
Bases for Segmenting Consumer Markets
Geographic
Region, City or Metro Size, Density, Climate
Demographic
Age, Gender, Family size and Life cycle, Race, Occupation, or Income ...
Probability of economic success given commercialization
40%
Expand Market Defend Market Share Expand Market Share
30%
Attack leader Status quo
20%
Imitate
10%
Specialize
Defense Strategies
(2) Flank defense
Attacker
(3) Preemptive defense (4) Counteroffensive defense
(1) Position defense
(6) Contraction defense
Defender
(5) Mobile defense
Attack Strategies
(4) Bypass attack (2) Flank attack (1) Frontal attack Attacker (3) Encirclement attack
Installation
Customer Consulting
Miscellaneous Services