Enterprise Marketing

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Enterprise Marketing

• Edward Gallagher MBA
• fasteddieg2001_at_yahoo.co.uk

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Identifying Market Segments and Targets

• Review
• Marketing is expensive, time consuming and
  resource intensive.
• Resources, time and money are limited
• Therefore
• Target your market Identify your market segment
  and focus your marketing efforts towards it.

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Market Segmentation Case Study Reebok

• Question
• Is there the perfect running shoe (sneaker)?
• Answer No
• Instead, there are perfect running shoes.

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Case Study Reebok

• Sneakers industry sales are a 16 billion per
  year in the US.
• Key competitors Nike, Reebok, Adidas, Puma, New
  Balance.
• 100s of models. Large consumer choice
• How do you do you differentiate your products?

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Examples of differentiation

• Nikes Swooshless line Low cost (40) sold
  exclusively at Wal-Mart
• Adidas 1 incorporating a computer and thin
  sensor to monitor shock and adjust sole
  stiffness. (250)
• Puma for teenagers target teenagers with cool,
  fashionable, low-tech sneakers sold at teen
  stores
• New Balance target seniors with comfortable
  walking shoes with choices of wider and narrower
  widths

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Reebok Targets a new market segment

• Recognizes that many urban youths wear sneakers
  as a fashion statement.
• They have little interest in athletics
• Dominant competitor is this segment is Nike.
• Reebok develops a new segments called, Street
  Fashion
• Reebok calls the product line S. Carter
  collection

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Celebrity Endorsements

• Nike revolutionized the sneaker industry with
  celebrity endorsements
• Nike signed famous athletes such as Michael
  Jordan to promote their products.
• Celebrities are social proof.

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Reebok S. Carter Collection

• Reebok deviated from the tradition of signing
  famous athletes.
• Instead, they signed hip hop star Jay-Z to
  promote the S. Carter Collection.
• The result 100 million in sales and the
  fastest selling shoes in Reeboks history.

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Reeboks other endorsement deals

• Reebok signed with Chinese basketball star Yao
  Ming to promote basketball shoes in China.
• Yao Mings contact is worth 70 million dollars.
  
• Yao Ming agrees to help Reebok market their
  products in his native country China.

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Reeboks other endorsement deals.

• Reebok signed Venus Williams to promote their
  tennis product line.
• Reebok signed with the NBA and the NFL to be
  their exclusive team uniform providers.
• Reebok will offer NBA and NFL branded shoes and
  clothing to consumers.

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Definitions

• Market Segmentation Sorting potential buyers
  into groups that have common needs and will
  respond similarly to a marketing action
• Product Differentiation Strategy of using
  different marketing mix activities, such as
  product features and advertising, to help
  consumers perceive a product as being different
  and better than competing products

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Ways Reebok Segments Markets

• Age segments Teenagers are more than 32 of
  total sales
• Gender segments Men segment buys more but Women
  segment has higher growth
• Price segments 62 of sneakers cost less than
  50
• Sports segments Running shoes are 1 (29)
  sales, basketball shoes 2 (21), cross trainers
  3, (13). Basketball shoes sales increasing,
  cross trainers declining slightly.
• Lifestyle segments 75 of sales are for casual,
  non-athletic use. Athletic shoes are more
  profitable with prices rising dramatically.

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Reebok Market Product grid
Group Running shoes Aerobic shoes Tennis shoes Basket ball shoes Walking shoes Cross-training S. Carter
Runners P P
Exercise P P
Tennis P P
Basket ball P P
Walkers S S S S P P
Comfort/ style S S S S S S
Street fashion P
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Segmentation Linking needs to Actions
Identify Market Needs Features Benefits Cost Qual
ity Convenience
Execute Marketing Program Product Price Promotion
Place
Process of segmenting and targeting markets
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When should the market be segmented?

• There is a potential for increased profit
• There is similarity of needs within a market
  segment
• There is a difference of need among market
  segments
• Potential of marketing action to reach a segment
• Simplicity and cost of assigning potential buyers
  to a segment

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Ways to segment markets

• Geographic customer characteristics
• Demographic customer characteristics
• Psychographic customer characteristics
  lifestyle.
• Buying situations
• Benefits/features sought
• Usage/patronage

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Executing segment Marketing

• Group products to be sold in categories based on
  features, benefits, price
• Develop a Market-Product grid, estimate the size
  of the market
• Select target markets
• Take marketing actions to reach target markets

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Positioning

• Definition The space a product occupies in
  consumers minds on important features, relative
  to competitors
• Examples
• 7-up The Un-cola
• Volvo Safety

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Homework

• Watch lecture from Malcolm Gladwell What We Can
  Learn From Spaghetti Sauce http//www.vidoemo.co
  m/yvideo.php?iaUlpQUFocWuRpVWVSNlkmalcolm-gladwe
  ll-what-we-can-learn-from-spaghetti-sauce