MARKETING CLASS Session II Marketing Strategy I Session II Marketing Strategy I Marketing Strategy A good marketing strategy should be drawn from Market Research and focus on the right product mix in order to achieve the maximum profit potential and sustain the business. S S T T P P D D Marketing Strategy Segmentation Market segmentation Dividing a market into smaller segments with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes. Segmentation Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation Segmentation Geographic Segmentation Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities Segmentation Demographic Segmentation Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality Segmentation Psycographic Segmentation Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits Segmentation Behavioral Segmentation Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasions Benefits sought User status Usage rate Loyalty status Segmentation To be useful, market segments must be: MeasurableAccessible SubstantialDifferentiable Actionable Targeting Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve Targeting Undifferentiated Targeting Undifferentiated marketing targets the whole market with one offer Mass marketing Focuses on common needs rather than whats different Targeting Differentiated Targeting Differentiated marketing targets several different market segments and designs separate offers for each Goal is to achieve higher sales and stronger position More expensive than undifferentiated marketing Targeting Concentrated Targeting Concentrated marketing strategy which only focused targeting their products to one or several segments only (Niche Market) Targeting Micromarceting Targeting Micromarketing is the practice of tailoringproducts and marketing programs to suit the tastes of specific individuals and locations Local marketing Individual marketing Positioning Product position is the way the product is defined by consumers on important attributesthe place the product occupies in consumers minds relative to competing products Perceptions Impressions Feelings Positioning Example Differentiation Is set of differences used to differentiate a product or brand by competitors THANK YOU, SEE YOU NEXT WEEK!