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Lecture 3
Faheem Azam
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[email protected] 2
Agenda
Competitors
analysis
Market
Segmentation
Target market
Positioning
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Once we are done with The SWOT,
PESTEL and Porter, we have a fair
picture of the industry and ourselves.
Next step is to translate our learning into
strategies
Lets see how we do that
From the Environmental
Audit
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Learning -> Strategy
Maintain
Act
quickly
Review Monitor
Strength Weakness
Important
Less
Important
What to do with theknowledge that you
get from SWOT?
Strengths -> maintain andmaximize
Weakness -> act quicklyand invest to minimize
Opportunities-> Address
with your strategies andgrasp
Threats -> address with
your strategies and avoid
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The Ansoff Matrix
MarketPenetration ProductDevelopment
Market
Development
Diversification
Existing New
Existing
New
Markets
Products
A marketing modelwhich captures in
one grid the onlystrategic
alternatives opento any
organizations
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The Marketing Process
The Marketing
Planning
and Process
Marketing teamResources
Objectives
Environmental factors
The Marketing
Mix
Product
Price
Promotion
Place
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BCG Revisited
Product Life Cyclefor strategy formulation
PLC knowledge
helps
understand
the way eachproduct must
be treated
strategically
Relative Market Sharehow do we plot it and toss it??
(Calculated w.r.t largest competitor)
The BCG can be used to evaluate competitors as well as your own
portfolio.
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Next StepFinding and
Knowing Customers
Once you have decided the Product Strategy
and the market, your next task is to
understand your customer and their
buying behavior- only then can you
develop the marketing mix
Hence from here onwards we are going to talk
about the market Segmentation andtargeting along with
positioning- the final
ingredients for a good marketing mix
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Segmentation
Division of market into many homogeneous
customer groups
Makes it possible for firms to tailor theirmarketing mix for
different type of
customers
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Criteria for Segmentation
SubstantialIdentifiable &MeasurableAccessible
Responsive
Segment must be largeenough to warrant a special
marketing mix.Segments must be identifiable and
their size measurable.Members of targeted segments must
be reachable with marketing mix.
Unless segment responds to amarketing mix differently, no
separate
treatment is needed.
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Bases for Segmentation
Usage Rate
Benefits Sought
Psychographics
Demographics
Geography
BasesUsed toSegment
ConsumerMarkets
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Geographic
Segmentation
Segmenting
markets by
region of the
country orworld, market
size, market
density, or
climate.
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Demographic
Segmentation
Segmenting markets
by age, gender, income, ethnicbackground,
and family life cycle
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Psychographic
Segmentation
Market segmentation on
the basis of personality,
motives, lifestyles, and
geodemographics.
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Segmentingpotentialcustomersinto
neighborhoodlifestylecategories.Combines
geographic,demographic,and lifestylesegmentation.
Geodemographic
Segmentation
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Benefit Segmentation
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Usage-Rate
Segmentation
Dividing a market by the amount of
product bought or consumed.
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The Target Market
Segmentsyou decide
to serve
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Positioning
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THE END
Any more Questions?
