4market STP
4market STP
4market STP
8-24
Psychographic Segmentation
Innovators Believers
Successful, “take charge” Conservative
Upscale, niche-oriented Familiar & established
Thinkers Strivers
Mature, reflective Trendy
Durability, functionality Stylish products
Achievers Makers
Successful career Practical, traditional
Established & prestige Basic, practical
Experiencers Strugglers
Enthusiastic, variety Resigned, passive
Fashion, entertainment Loyal to favorite brands
Behavioral Segmentation
• Many marketers believe behavioral variables
are the best starting points for constructing
market segments. Variables include:
• Occasions
• Benefits
• User Status
• Usage Rate
• Buyer-Readiness
• Loyalty Status
• Attitude
8-28
Behavioral Segmentation
• Divide buyers into groups – based on
knowledge, attitude, use, response to product
DECISION ROLES
5 roles: Initiator, Influencer, Decider, Buyer
& User
• Occasions: time of day, week, month, year or
any defined aspects of life
• Buyers -occasions – creates the need/buy
product
Behavioral Segmentation
• Benefits:
– Buyers grouped – benefits they seek
Mobil identified five different benefit segments
and their sizes:
1. Road Warriors — Premium products and quality
service (16 percent).
2. Generation F — Fast fuel, fast service, and fast
food (27 percent).
3. True Blues — Branded products and reliable
service (16 percent).
4. Home Bodies — Convenience (21 percent).
5. Price Shoppers — Low price (20 percent).
Behavioral Segmentation
• User Status:
– non-, ex-, potential, 1st time, regular & will-be (life stage/event)
users
• Market leaders - attract potential users
• Small firms - attract users from leader
• Usage Rate:
– light, medium & heavy users
Heavy users
– Small % of market but high % total consumption
– Loyal to only one brand or lowest price
Behavioral Segmentation
• Buyer-Readiness stage: unaware, aware,
informed, interested, desire, and intend to
buy.
Brand loyalty status: What firms
Hard-core loyal
1 brand all the time
learn:
Product
Split loyal
strengths,
loyal to 2/3 brands
Competitive
Shifting loyal
brand,
1 brand to another
Marketing
Switchers
weakness
No loyalty to any
brand
Cautionary note about ‘brand loyalty’
• Attitudes:
– The five attitudes about products are: enthusiastic, positive,
indifferent, negative, and hostile
The Conversion Model
• The Conversion Model has been developed to
measure the strength of the psychological
commitment between brands, consumers, and
their openness to change
• The model segments users of a brand into four
groups based on strength of commitment from
high to low:
– Convertible
– Shallow
– Average
– Entrenched
The Conversion Model
• The model also classifies non-users of a
brand into four groups based on their
“balance of disposition” and openness to
trying the brand, from low to high:
– Strongly unavailable
– Weakly unavailable
– Ambivalent
– Available
Segmenting Business Markets
• Business markets can be segmented with some
of the variables used in consumer market
segmentation but business marketers also use
other variables.
• Within a given target market industry and
customer size, a company can segment further
by purchase criteria.
• Business marketers generally identify segments
through a sequential process.
Business Market Segmentation
• Within a given target industry and customer
size, a company can segment further by
purchase criteria.
• For example,
– government laboratories need low prices and service
contracts for scientific equipment;
– university laboratories need equipment that requires
little service; and
– industrial laboratories need equipment that is highly
reliable and accurate
Market Targeting
• Once a firm has identified its market-
segment opportunities, it must decide how
many and which ones to target.
• This has lead some researchers to
advocate a needs-based market
segmentation approach.
Effective Segmentation Criteria
• Through concentrated
marketing, the firm gains a
strong knowledge of the
segment’s needs and achieves
a strong market presence
• However, there are risks, a
market segment can turn sour,
or a competitor may invade the
segment
• For these reasons, many
companies prefer to operate in
more than one segment
Selective Specialization
• The firm selects a number of
segments, each objectively
attractive and appropriate
• This multi-segment strategy
has the advantage of
diversifying the firm’s risk
Product and Market Specialization
Product Specialization
• Makes & sells - different market segments
• Risk: Product replaced by new technology
• Market Specialization
– Serve many needs of a group
– Strong reputation - channel for other products
– Downside risks
1) Group suffer budget cuts or
2) Shrink in size
Full Market Coverage
• The firm attempts to serve all
customer groups with all the
products they might need.
• In undifferentiated
marketing, the firm ignores
segment differences and goes
after the whole market with one
offer.
• In differentiated marketing,
the firm operates in several
market segments and designs
different products for each
segment
DIFFERENTIATED MARKETING COSTS
Differentiated
> Undifferentiated
marketing sales marketing sales
(Garnier, Raymond)
(Sony, Nikon, HP?)
• Straddle Positioning (Best-of-both-worlds)
• Conveying Category Membership
– Announcing category benefits
– Comparing to exemplars
– Relying on the product descriptor
Choosing POPs & PODs
POPs – same
PODs – same but different
PODs consumer desirability criteria
Relevance, Distinctiveness, Believability
1. Singapore airlines
2. McDonald's
3. Reliance Mart / Westside / Pantaloons
4. TCS (highly qualified people)
Six characteristics of personnel
1. Competence – required skill n knowledge
2. Courtesy – friendly , respectful
3. Credibility – trustworthy
4. Reliability
5. Responsiveness
6. Communication
Channel differentiation
• Distribution channels
• Different channel than other competitors
• Direct distribution channel where in
salesperson reaches to customers at their
homes, demonstrate the product,
installation, basic information, collect
money & provide after sales service
(Eureka Forbes)
Image differentiation
• Powerful, compelling images
• Identity vs Image
• Identity – it is the way a company aims to identify or
position itself or its product
• Image – it is the way the public perceive the company
or its product
• For identity effective communication should be there.
Even physical space can be powerful image
generator.
Thank you…