market intelligence & segmentation class
TRANSCRIPT
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Market intelligence:
Internal records:
Order to payment cycle must be fast and
efficient
Sales data, which must be interpreted in the right
way for your future planning
Marketing Intelligence System: Developmentshappening in the external market
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Macro Environment
Demographic: includes population growth, population-age mix, literacy rate
Economic environment: How is the income distributed
Socio-cultural environment Natural environment
Technological environment
Political-legal environment
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Macro-environment of India
Demographic:
Population: 1.1 billion (2006 est.)
Rural: 742.61 million
Urban: Age structure:014 years: 30.8%
1564 years: 64.3%
65 years and over: 4.9% (2006 est.)
Average age of Indians is 26 years
Population growth rate: 1.38%
Unemployment rate: 9.2%
Religions, languages, etc.
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Macro environment in India (contd.)
Economic environment GDP: Crossed $1 trillion in 2007 and growing at 7-8% Forex reserves: $310.68 billion (RBI) FDI target for 2008-09: $35 billion, China 42.78 billion in
1st
five months Indian middle class is approx. 30% of its population more
than entire population of USA Rural population is now moving upwards too and
becoming a huge potential market e.g. Hero Honda
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Macro environment in India (contd.)
Income distribution (2006-07)
Income class(Rs. p.a.)
Households Estimatedpopulation
Rich (>215K) 5.2 30Consuming
Class (45-215K)75.5 432
Climbers (22k-
45k)
81.7 472
Aspirants (16-22k)
20.2 117
Destitute (
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Macro environment in India (contd.)
Socio-Cultural Environment: General views that people hold about themselves, the environment, society,
world, etc.
Diversity in tastes and preferences in your target markets has to be takeninto account for products
e.g. Spencer Retail has different types of atta in local market in Gujarat, while inBengal, they have to cater to peoples leanings towards non-veg food
Apollo Tyres separate for North & South
Dominos is looking to customise its pizza offerings
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Macro environment in India (contd.)
Natural Environment:
Companies have to abide either by regulation or whenmarkets become hostile e.g. Coca Cola in Plachimada,Bharat 2 norms followed by car makers.
Four trends to be careful about:
Shortage of raw materials
Increasing energy costs
Anti-pollution pressures
Changing role of Government
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Segmentation, targetting & Positioning(STP)
Mass Marketing: Mass production, distribution &promotion
Market segment: Group of customers with similar needs &wants. Customers may have homogenous,heterogenous or diffused preferences
Niche: A more narrowly defined customer group seeking a
distinctive set of benefits
Local marketing: Customised to local needs
Customerisation: Segments of 1 in the market
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STP (Contd.)
Segmenting consumer markets:
1) Geographic segmentation: Assumes that people in same area sharesimilar needs and wants.
India has 5,000 towns and 6,38,000 villages. How to reach this
market? What are the consumption patterns and awareness levels, et al?
Prahlads Bottom of the Pyramid focus
Also zones and state-wise segmentation
HLL brought in sachets for rural markets
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STP (Contd.)
2) Demographic segmentation:
Age & life cycle stage (marital status)
Gender
Income, education, occupation Generation: Baby Boomers: 1946-64; Gen X: 1965-76, Gen Y: 1977-1994. Itgives rise to cohort effects, what time you grew up in affects your behaviour.Most of that behaviour is defined in growing up years.
Social class, normally associated with wealth now.
Culture & Subculture
Cross cultural segmentation
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STP (Contd.)
3) Psychographic segmentation:
Based on psychology, personality traits, lifestyle & values
High income groups of four types:
a) Innovators: Niche oriented products
b) Thinkers: Utility based
c) Achievers: Products that demonstrate success
d) Experiencers: Young and impulsive; spend on Fashion, entertainment,
socialising
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STP (Contd.)
3) Psychographic segmentation (Contd.)
Low income groups of 3 types:
Believers: Conservative, conventional, traditional, loyal to establishedbrands
Strivers: Trendy, fun-loving; favour stylish products and try to emulate therich
Makers: Practical and down to earth; favour functionality
Survivors: Elderly, passive people, loyal to their favourite brands
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STP (Contd.)
Behavioural segmentation:
Five roles in decision making: Initiator, influencer,decider, buyer, user
Behavioural variables:
i. Occasion
ii. Benefits sought
iii. User status (non-user, ex-user, potential user, first-time user & regular user)
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STP (Contd.)
Behavioural variables (Contd.)
iv. Usage rate (light, medium, heavy)
v. Buyer readiness stage: Unaware, aware, informed,interested, desire, ready to buy
vi. Loyalty status: Hardcore loyals, split loyals (2-3brands), shifting loyals and switchers
vii. Attitude: Enthusiastic, positive, indifferent, negativeand hostile
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Targeting
Identifying the worthiness of segments:
1) You should be able to measure the potential2) You should be able to profitably do business as well as serve
the needs of the segment
3) You should be able to adopt unique marketing strategies for
the segments
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Targetting (Contd.)
P1
P2
P3
M1 M2 M3
P1
P2
P3
M1 M2 M3
Single segment concentration Selective specialisation
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Targetting (Contd.)
P1
P2
P3
M1 M2 M3
P1
P2
P3
M1 M2 M3
Product specialisation Market specialisation
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Targetting (Contd.)
P1
P2
P3
M1 M2 M3
Full market coverage
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Positioning
Definition:The act of designing the companys offering and image to
occupy a distinctive place in the mind of the target
market
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Positioning (continued)
Marketers are supposed to
Points-of-Difference (POD): Attributes that consumers
believe cannot be found with another brand.
Points-of-Parity (
POP
): Associations that are found in otherbrands as well. Of two types:
a) Category POPs: Automatically associated with the product
category.
b) Competitive POPs: Used to negate competitors points ofdifference.-
Advisable to establish category membership before
establishing PODs
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Positioning (continued)
PODs should be desirable, distinctive and believable.
They should be feasible, enduring
Multiple PODs may be negatively correlated or unrelated, so
marketers have to ensure customers do not get confused oralienated
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Positioning
Changing lifestyles of people Style, practicality &economy
Small MPV for family
Safety features, space
Looks, power, luxury. styleConcept, mileage, design
http://www.marutidzire.com/default.asp?nav=homehttp://www.marutiwagonr.com/index.asphttp://www.marutiomni.com/features.asp -
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Segmentation (contd)