3. PPT3 - STP.pptx

3. PPT3 - STP.pptx - STRATEGIC MARKET SEGMENTATION...

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1 STRATEGIC MARKET SEGMENTATION Strategic Marketing & Planning Naveed Ilyas | [email protected]
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Review 2
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3 Segmentation
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IBM Story Sluggish sales in 90s Structure around geographic divisions Became market oriented - New segmentation approach in 1991 New segments based on ‘customer needs” Insurance Cos. Banks Govt Deptts Retail Industry Regained profitability in 1994 4
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Strategic Segmentation Buyers vary according to how they use products, the needs and preferences that the products satisfy and their consumption patterns. These differences create market segments Many consumer markets show signs of fragmentation into ‘ microsegments ” driven by diverse product preferences and media usage and demanding “right for me” in products purchased. This is why, Nike offers more than 300 varieties of sport shoe. 5
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Strategic Segmentation Levis Jeans Customized for an individual Panasonic pioneered Made to measure bicycles, where the retail customer is measured as if for a suit of clothes and the customer made bicycle delivered to the store within a few days. 6
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7 Segmentation and Market Driven Strategy Identifying Market Segments Forming Segments Finer Segmentation Strategies Selecting the segmentation strategy
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8 Segmentation and Market Driven Strategy Identifying Market Segments Forming Segments Finer Segmentation Strategies Selecting the segmentation strategy
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Segmentation and Market Driven Strategy Market Segmentation and Value Opportunities Finding subgroups of buyers within a total market Segmentation identifies customer groups within a product market , each containing buyers with similar value requirements concerning specific product / brand attributes. Creating new market space Market analysis may identify segments not recognized or served effectively by competitors New segment example ? (Tarang) (Smoker’s toothpaste) 9
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Segmentation and Market Driven Strategy Matching Value opportunities and capabilities Examining specific market segments helps to identify how to Attain a closer match between buyers’ value preferences and the organization’s capabilities and Compare the organization’s strengths (and weaknesses) to the key competitors in each segment Market Targeting and Strategic Positioning Market segmentation lays the groundwork for market targeting and positioning strategies Faulty segmentation reduces the effectiveness of targeting and positioning decisions Examples?
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