target marketing

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Chapter 9
target marketingcompetition

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Requirement of this chapter
Chapter 9
Target marketing competition

• How does a company confirm subdividing the
  market?
• How a company choose a competitive strategy ?

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In this chapter, we focus on 3 parts.
Chapter 9
Target marketing competition

• 1. Markets segmenting
• 2. target marketing
• 3. Marketing competitions

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Chapter 9
Target marketing competition
1 Market segmentation
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1.1 Definition
Chapter 9
Target marketing competition

• Dividing a market into distinct groups of buyers
  on the basis of need, characteristic,or behavior
  who might require separate products or marketing
  mixes.
• The cause that a market can be segmented is
  that customers have both similar and different
  demands.

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Levels of Segment
Chapter 9
Target marketing competition

• Mass marketing
• Segment marketing
• Niche marketing
• Local marketing
• Customization

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1.2 Function
Chapter 9
Target marketing competition

• A.The company can market more efficiently,targetin
  g its products or services,channels,and
  communications programs toward only consumers
  that it can serve best and most profitably.
• B. The company can market more efficiently by
  fine-tuning its products, prices and programs to
  the need of carefully defined segments.
• C. The company may face fewer competitors if
  fewer competitors are focusing on this market
  segment.

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1.3 Segmentation variables for consumer markets
Chapter 9
Target marketing competition

• (1) Demographic
• Age
• Sex
• The number of people of the family
• Family life cycle
• Income
• Education level

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1.3 Segmentation variables for consumer markets
Chapter 9
Target marketing competition

• (2) Psychological factor
• Social class
• Life style
• Personality

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1.3 Segmentation variables for consumer markets
Chapter 9
Target marketing competition

• (3) Geographical factor
• World region or country
• City or metro-size
• Density
• Climate

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1.3 Segmentation variables for consumer markets
Chapter 9
Target marketing competition

• (4) Behavioral
• Occasions
• Benefits
• User status
• Usage rate
• Loyalty
• Readiness stage
• Attitude to products ?

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1.4 Requirements for effective segmentation
Chapter 9
Target marketing competition

• ?Measurable The size,purchasing power,and profit
  of the segments can be measured.
• ?Accessible The market segments can be
  effectively reached and served.

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1.4 Requirements for effective segmentation
Chapter 9
Target marketing competition

• (1) Measurable
• The demand amount, purchasing power, and
  profiles of the segments can be measured.
• (2) Accessible
• The segments can be effectively reached and
  served. Effective programs can be designed and
  implemented.

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1.4 Requirements for effective segmentation
Chapter 9
Target marketing competition

• (3) Substantial
• The market segments are large or profitable
  enough to serve.
• (4) Differentiable
• The segments are conceptually distinguishable
  and respond differently to different marketing
  mix elements and programs.
• (5) stable
• The segments must be stable in a given period.

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1.5 The procedure of market segments
Chapter 9
Target marketing competition

• Survey stage
• Attributes their importance ratings
• Brand awareness and brand ratings
• Product-usage patterns
• Attitudes toward the product category
• Other variables.
• Analysis stage
• Subdivide stage

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1.6 Way to segment the market of automobile ?
Chapter 9
Target marketing competition

• 1. Production characteristic
• 2. Different user
• Private, government, State-owned enterprise,
  privately owned enterprise
• 3. The capacity of market
• The primary market,the secondary market

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2 Target marketing
Chapter 9
Target marketing competition

• Now marketing theories consider any company has
  lack of enough abilities to do marketing well in
  a whole market.
• Segmenting, selecting segments, and doing market
  localization are three marketing steps at
  present.
• Target marketing means that companies must
  carefully evaluate all segments, and select
  one/several segments as their goal markets, then
  do good marketing strategies as possible.

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2 Target marketing
Chapter 9
Target marketing competition

• 2.1 Evaluating market segment
• 2.2 Selecting market segments
• 2.3 Marketing positioning

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2.1 Evaluating market segment
Chapter 9
Target marketing competition

• Segment scale and growth, segment structural
  attractiveness, and company objectives and
  resources
• Major structural factors that affect long-run
  segment attractiveness.
• Company objectives and resources.

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2.2 Selecting market segments
Chapter 9
Target marketing competition

• Single-segment Concentration only one segment as
  target market.
• Selective specialization several segments as
  target markets.
• Product specialization a line of products
• Market specialization a type of markets
• Full market coverage all segments as target
  markets, differential marketing strategies for
  different segments.

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Chapter 9
Target marketing competition
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Chapter 9
Target marketing competition
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Pay attention
Chapter 9
Target marketing competition

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Differentiated marketing A firm targets several
market segments or niches and designs separate
offers for each. Undifferentiated marketing A
firm might ignore market segment differences and
go after the whole market with one offer.
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2.3 Marketing positioning
Chapter 9
Target marketing competition

• The concept of marketing positioning a company
  should identify right product imagines and
  company imagines in order that consumers can have
  a clear and comprehensive impression in their
  minds.
• Of course, marketing positioning is for target
  market segments.

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2.3 Marketing positioning
Chapter 9
Target marketing competition

• The procedures of positioning
• Study on factors affecting market localization.
  For examples, ways how competitors localize,
  consumers evaluating criteria and approbation.
• Selection and intensification of superiorities
  own by a company.
• precise positioning spread and communication.

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3 Marketing competitions
Chapter 9
Target marketing competition

• 3.1 Analysis tools of competitions
• 3.2 How to find competitors
• 3.3 Competitive strategies

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3.1 Marketing competitions
Chapter 9
Target marketing competition

• 3.1.1 PEST-method
• 3.1.2 Five forces model
• 3.1.3 SWOT method

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3.1.1 PEST-method
Chapter 9
Target marketing competition

• this is an environmental analysis tool consisted
  of political, economic, societal, and
  technological factors.

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3.1.2 Five forces model
Chapter 9
Target marketing competition

• supplier's bargain ability, buyers bargain
  ability, threat of new competitors, threat of
  replacement product, and competitiveness come
  from existing competitors.

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Chapter 9
Target marketing competition
3.1.2 Five forces model
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3.1.3 SWOT method
Chapter 9
Target marketing competition

• this is a analysis tool studying on internal
  abilities and environmental forces.
• There are two cases in internal abilities of a
  company superior, weak. There are also two cases
  in environmental forces opportune and
  threatened. SWOT means strength, weakness,
  opportunity, threat.

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Chapter 9
Target marketing competition
3.1.3 SWOT method
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3.1.3 SWOT method
Chapter 9
Target marketing competition
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3.1.3 SWOT method
Chapter 9
Target marketing competition
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3.1.3 SWOT method
Chapter 9
Target marketing competition
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3.1.3 SWOT method
Chapter 9
Target marketing competition

• SO-strategy internal superiorities and good
  exterior opportunities.
• WO-strategy internal weakness and good exterior
  opportunities.
• ST-strategy internal superiorities and
  environmental threat.
• WT-strategy internal weakness and environmental
  threat.

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3.2 How to find competitors
Chapter 9
Target marketing competition

• Usually, competitors we can be found by analyzing
  on a contesting fight power for customers
  demands and desires, and on corporations in the
  same industry. Attention sometimes it is
  especially difficult that potential competitors
  are found in time.
• We can classify corporations as 4types on the
  basis of their competitiveness leaders,
  challengers, followers, niche-seekers.

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3.2 How to find competitors
Chapter 9
Target marketing competition

• Having analyzed who is or would be competitors, a
  company must recognize their competition
  strategies, evaluate their advantages and
  disadvantages, and make sure its competition
  strategies.
• Types of competition strategies advanced
  strategy in cost, differential strategy in
  product/service, concentrated strategy in market
  or business. Once a kind of strategy is chosen,
  it must be continued and quite implemented.

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3.3 Competitive strategies
Chapter 9
Target marketing competition

• 3. 3.1 Market leader strategies
• 3. 3.2 Market challenger strategies
• 3. 3.3 Market follower strategies
• 3. 3.4 Market nicher strategies

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3. 3.1 Market leader strategies
Chapter 9
Target marketing competition

• Market leader
• The leader has the largest market share and
  usually leads the other firms in price
  changes,new-product introductions,distribution
  coverage,and promotion spending.

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3. 3.1 Market leader strategies
Chapter 9
Target marketing competition

• Expanding the total market
• Protecting market share
• Expanding market share

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3. 3.1 Market leader strategies ?
Chapter 9
Target marketing competition
Expand the total market By developing new user,new or more usage of its products
Protect market share Keep cost down,avoid competitors jumping in with continuous innovation
Expanding market share
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3.3.2 Market challenger strategies
Chapter 9
Target marketing competition

• Market challenger
• a company who can challenge leaders and other
  competitors.

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3.3.2 Market challenger strategies
Chapter 9
Target marketing competition

• A.Define which competitors to challenge and its
  strategic objective.
• B.Choose a competitive strategy.
• launch a full frontal attack,matching the
  competitors product,advertising and price.
• make an indirect attack on the weakness.
• diversify into unrelated products.

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3.3.3 Market follower strategies
Chapter 9
Target marketing competition

• Market follower
• they have no enough competitiveness to challenge
  any competitor, and imitate the marketing of
  those stronger companies.

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3.3.3 Market follower strategies
Chapter 9
Target marketing competition
Learn from the leaders experience and copy or
improve on their products with much less
investment
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3.3.4 Market nicher strategies
Chapter 9
Target marketing competition

• Market nicher
• Know the target customer group so well that it
  can meet their needs better than other firms.

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3.3.4 Market nicher strategies
Chapter 9
Target marketing competition

• Know the target customer group so well that it
  can meet their need better than other firms.
• Charge a substantial makeup over cost.
• Specialize along of market customers, product,or
  marketing mix lines.