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Module: Strategic MarketingInstructor: Bilal Ahmad

LECTURE: Markets and CompetitiveSpace

Introduction

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• Level and types of market segmentation

• Market driven strategies and segmentation

• Activities and decisions in market

segmentation

• Defining market to be segmented

Learning Outcomes

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• Kotler's definition of market segmentation is

too narrow. Marketing professor Dr. Philip

Kotler defines segmentation as 'the act of

dividing a market into distinct groups of buyers

who might require separate products and/or

marketing mixes.

• Segmentation technique example:

– http://www.investopedia.com/terms/m/

marketsegmentation.asp

Segmentation

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• The process of defining and subdividing a

large homogenous market into clearly

identifiable segments having similar needs, wants,

or demand characteristics. Its objective is

to design a marketing mix that precisely matches

the expectations of customers in the targeted segment.

Read

more: http://www.businessdictionary.com/definition/mar

ket-segmentation.html#ixzz3ooIjMGl3

Segmentation

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Levels and types of market segmentation

OperationalSegmentation

ManagerialSegmentation

StrategicSegmentation

VisionStrategic intentProduct benefits Resource allocation

AlignmentPlanning

Marketing programs - Advertising - Sales - Distribution

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OLD NEW

• CONSUMER Passively receive Empowered media users

whatever TV control and shape content

networks thanks to TiVo, iPod and

broadcast Internet

• ASPIRATIONS To keep up with crowd To standout from the crowd

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• TV CHOICE Three networks Hundreds of channels

plus maybe a plus video on demand

PBS station

• MAGAZINES Age of the big Age of the special interest

glossies: Time, magazine for every age

Life, Newsweek and affinity group

• ADS Everyone hums Talking to a group of

the Alka-Seltzer one, ads go ever

jingle narrower

• BRANDS Rise of the big, Niche brands, product

ubiquitous brands extensions and mass

from Coca-Cola customization mean many

to Tide product variations

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• Market-driven strategy and segmentation

– Market segmentation, value opportunities and new

market space

– Market targeting and strategic positioning

Strategic market segmentation

Segments Value opportunities

New market space

Match Value opportunities

and capabilities

Market targeting

Strategic positioning

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• Activities and decisions in market segmentation

Strategic market segmentation

IDENTIFY MARKET

SEGMENTS

FORMING MARKET

SEGMENTS

FINER SEGMENTAT

ION STRATEGY

SELECTING THE

SEGMENTATION

STRATEGY

DEFINING THE MARKET TO

BE SEGMENTED

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• Defining the market to be segmented

Class excercise

Level of competition

• Generic• Product

type• variant

Product definition

• Health and beauty aids

• Shaving equipment

• Electric razors

Competitors

• ???• ???• ???

Needs/wants satisfied

• ???• ???• ???

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• Identifying market segments– Segmentation variables

– Characteristics of people and organizations• Consumer markets

• Organizational markets

• Product use situation segmentation

• Buyers’ needs and preferences

– Consumer needs

– Attitudes

– Perceptions

• Purchase behaviour

Strategic market segmentation

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• To be continued….. Lecture 4

• Case study after the break

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• Anticipating the future

– Boundaries and composition of Product market

– End-user customer base

– Market and industry transformation

– Potential threats

– Value chain composition and structure

– Product life cycle phase?

Strategic vision about future