Toothpaste consumer segments Firms that sell chips for cell phones (this are called DSPs) segment the market like this: But what benefits are big and small firms looking for. It turns out that this market can be segmented (at the level of the application) as follows: Cell phone consumer segments COCA-COLA Coca-Colas research found that children of working class parents prefer to GULP their drinks. Coca-Cola, and other carbonated beverages, are difficult to gulp. Segmentation response: MELLO YELLOW - THE FASTEST DRINK IN THE WEST Auto market There are many ways that a segment can be considered. For example, the auto market could be segmented by: driver age, engine size, model type, cost, and so on. However the more general bases include: by geography - such as where in the world was the product bought. by psychographics - such as lifestyle or beliefs. by socio-cultural factors - such as class. by demography - such as age, sex, and so on. The Segmentation Matrix Business Battlemap is a useful segmentation tool. There are two bases for segmentation. Here we use beer brand versus ages groups. The various products are then plotted on the matrix. The result is a 'battlemap'. THE SEGMENTATION MATRIX BUSINESS BATTLEMAP Another example Originally Lite by Meisterbrau aimed at ladies - light users. 7 - 9 Positioning Value propositions represent the full positioning of the brand Possible value propositions: More for more More for the same More for less The same for less Less for much less Topics Goal 4: Discuss how companies position their products Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy Another example the rest of the story Miller bought the brand and repositioned it for men - Heavy users. They fought - less filling - great taste And drank a lot of it! On the following scale please place a check on the position that describes your beliefs about the brand:
Miller
Heavy taste Light taste |--------------------|--------------------|--------------------|--------------------|
Dark color Light color |--------------------|--------------------|--------------------|--------------------| Budweiser
Heavy taste Light taste |--------------------|--------------------|--------------------|--------------------|
Dark color Light color |--------------------|--------------------|--------------------|--------------------| On the following scale please place a check on the position that describes your beliefs about the brand:
Miller
Heavy taste Light taste |--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10
Dark color Light color |--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10 Budweiser
Heavy taste Light taste |--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10
Dark color Light color |--------------------|--------------------|--------------------|--------------------| -10 -5 0 5 10
What segment is being targeted?
What is the positioning? Marketing in Action 7 - 13 Exercise 1 - Use of Descriptive Variables in Segmentation Richardson Vicks
The number of young adults age 20-24 who have skin problems now exceeds the number of teenagers with blemishes.
Segmentation response: CLEARSIL ADULT CARE Williams-Sonoma 15 percent of its cookware customers are male. The company has been considering what to do to boost the sales of its catalogs.
Segmentation response: _____________ _________________________________ Heavy taste D a r k
C o l o r
Light taste L i g h t
c o l o r
o Budweiser O MILLER LITE O MILLER BEER O GUINESS STOUT High price/oz. L o w
i n
c a l o r i e s
Low price/oz. H i g h
i n
c a l o r i e s
Product & Brand Positioning (a) Product-positioning map (breakfast market) Expensive S l o w
Inexpensive Q u i c k
Bacon and eggs Pancakes Instant breakfast Cold cereal Hot cereal b) Brand-positioning map (instant breakfast market) Brand C Brand B Brand A High price/oz. L o w
i n
c a l o r i e s
Low price/oz. H i g h
i n
c a l o r i e s
Product & Brand Positioning (a) Product-positioning map (breakfast market) Expensive S l o w
Inexpensive Q u i c k
Bacon and eggs Pancakes Instant breakfast Cold cereal Hot cereal b) Brand-positioning map (instant breakfast market) Brand C Brand B Brand A What position does this one occupy? The Night Time cough medicine Why --- it originally was 25% alcohol Antihistamines + alcohol = unconsciousness