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Norhasimah Hamim 2013838972
Nurul Farah Izzah Zailani 2013875064
Alfian Thomas 2013834132
Nurain Mohd Jais 2013269312
Norf...
 Levels of market segmentation
 Market –driven strategy and segmentation
 Activities and decisions in market segmentati...
 Segmenting markets is a foundation for superior performance by
understanding buyer‟s needs and wants.
 Market segmentat...
Levels and Types of Market Segmentation (Exhibit 3.1)
 Link to management vision & strategic intent
of corporate strategy...
 Market segmentation should be considered early in development of market
–driven strategy.
 Exhibit .2: Segmentation in ...
 Market segmentation is the process of placing the buyers in a product-
market into subgroups which can be indicated by t...
 Market segment also can be refer as market niche which represents a small
portion of the buyers in the total market.
 S...
 Market targeting consists of evaluating and selecting one or more segments
whose value requirements provide a good match...
Defining the
market to be
segmented
Identifying
market
segments
Forming
market
segments
Finer
segmentation
strategies
Sele...
Defining the Market to Be Segmented
Generic
Level
• Basic approaches in strategic marketing that can be adopted by any fir...
Level of
competition
Product Definition Illustrative
Competitior
Need/Want
Satisfied
Generic Health and beauty
aids
Consum...
Level of
competition
Service Definition Illustrative
Competitors
Need/Want
Satisfied
Generic Inbound Market Inbound agents...
Identifying Market Segments
1. Segmentation variables
2. Characteristic of People & Organization
3. Product Use Situation ...
• Use to divide the product market into
segment involved few variables as below:
– Demographic & Psychographic
– Use Situa...
• Demographic
– Age
– Gender
– Family size or life cycle
– Income
– Occupation
– Education
– Religion
– Race
– Generation
...
• How buyer uses the product?
• Example; purchasing a meal away from home
for the purpose of entertainment
• Domino’s
USE ...
• Include attitudes, brand awareness & brand
preference
• Example; people who practice healthy
lifestyle, love to have hea...
• This variables describe brand-use and
consumption (e.g: size and frequency of
purchase)
• Purchase decision making patte...
• Consumer Market
– Characteristic of people fall into 2 categories;
1) Geographic & demographic
* Geographic location, us...
• Organizational Market
– Characteristic that help in segmenting business
market; size of the company, stage of industry
d...
• Boeing caters to the specific needs of air
carrier purchasing commercial aircraft,
adapting designs to meet customer pri...
Field Study Visit Malaysia
destination
Demographic,
geography,
psychographic
Identify source
of market
Market Profile
Tour...
• Market can be segmented based on how the
product is used
• Needs & preferences vary according to
different use situation...
• Market can be segmented based on needs &
preference that are specific to products and
brands
• Consumer Needs
– Customer...
• Attitudes
– Buyer’s attitude towards brands are important
because experience and research findings indicate
that attitud...
• Perception
– The process by which an individual selects,
organizes and interprets information inputs to
create a meaning...
• Consumption Variables useful in segmenting
consumer and business market
• Level of product use may not necessarily
ident...
 Developing new strategies segment
targets – for certain target market
 Developing new strategic segment
target. Targets...
Forming Market
Segment
 Requirements for
Segmentation
 Approaches to
Segment
Identification
 Customer Groups
Identifica...
Requirements For Segmentation
Is it worthwhile to segment a product – market ?
E.g. Gillette – “one for all product” strat...
 Response Differences
 Identifiable Segments
 Actionable Segments
 Cost vs. Benefits of
Segmentation
 Stability Over ...
a. Response Differences
How customer response towards the product?
E.g.
Variable (geographic, demographic, psychographic a...
b. Identifiable Segments
 The differentiating attributes of the
segments must be measureable so that
they can be identifi...
c. Actionable Segment
 Must be able to do marketing program to promote and attract targeted
market segment and provide se...
d. Cost vs. Benefits of Segmentation
 Important to evaluate the benefits of segmentation.
 Should generate more sales an...
e. Stability Over Time
 Must show stability over time and must be consistent.
 Prefer to target consumer segments that a...
Product Differentiation Market Segment
 Offer something different from competitor.
 Increase sales by creating a unique ...
Approaches to Segment Identification
 How to identified segment?
Segment
Identification
Characteristic
Response Profile D...
Customer Group Identification
 After the product-market of interest is defined, promising segments may be
identified by u...
Management Insight &
Available Information
Product Market
Segmentation
Dimension for Hotel
Lodging Services
Cross Classification Analysis
HIGH VOLUME
LOW PROFIT
MEDIUM VOLUME
LOW PROFIT
LOW VOLUME
LOW PROFIT
HIGH VOLUME
MEDIUM PRO...
Data Mining for Segmentation
 The process of extracting previous unknown and actionable information
from large and comple...
Forecasting
Tourist
Expenditure
Analyzing
Profiles of
Tourists
Forecasting
Number of
Tourists
Arrivals
 Use of Data Minin...
Segmentation Illustrations
Illustrative Example: Gasoline Buyers
Road
Warriors
Higher-income, middle-aged men, drive
25,00...
Generation
F3 (Fuel,
Food & Fast)
Upwardly mobile men and women, half under
25 years of age, constantly on the go, drive a...
Segmentation
Illustrations
Forming Group Based on Response Differences
 The alternative to selecting customer groups based on descriptive
characteri...
 To define a group of people (consumers)
according to the similarity of their answer
to questions about products.
 To id...
Characteristics
of people/
organizations
Consumer
Markets
Industrial/
Organizational Markets
Age, gender, income,
family s...
Select the
product-
market area
Decide which
brands compete in
the product-market
Collect buyers‟
perception
Analyze
data
...
Expensive
Inexpensive
GROUP
II •Brand A
•Brand B
GROUP
V High
Quality
GROUP
III •Brand C
GROUP
IV
GROUP
I
•Brand E
Low
Qua...
Illustrative Consumer Perception Map
 Assessing strengths and weaknesses relative to competing brands along
certain criteria important to the customer.
 Iden...
Finer Segmentation Strategies
 A company able to utilize finer
segmentation strategies because of
a combination of factor...
Logic of
Finer
Segments
Customized Offerings
Feasible because of extensive information flow, and
comprehensive databases, ...
Microsegmentation
• Seeks to identify narrowly defined segments using one or more of the
segmentation variables.
• Example...
Finer Segmentation Issues:
 How much variety should be offered to buyers?
 Will too much variety have negative effects o...
Deciding how to segment:
 The choice of a segmentation method depends on:
 The maturity of market
 The competitive stru...
Customer Analysis
Competitor Analysis
Positioning Analysis
Estimating Segment Attractiveness
Strategic Analysis of Market
...
Strategic Analysis of Market
Customer Analysis
• The objective is to find descriptive
characteristics that are highly corr...
Strategic Analysis of Market
Positioning Analysis
• Involves some preliminary choices about
positioning strategy
• Should ...
Segment „Fit‟
and
Implementation
 One important aspect of evaluating
segment attractiveness are:
 How well the segments ...
 Because buyers differ in their preferences for
products, finding out what these preferences
are and grouping buyers with...
Q&A and Discussion Session
Chapter three presentation - Market Segmentation ppt.
Chapter three presentation - Market Segmentation ppt.
Chapter three presentation - Market Segmentation ppt.
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Chapter three presentation - Market Segmentation ppt.

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A power point presentation for Strategic Market Segmentation for subject Strategic Marketing for Hospitality and Tourism Industry.

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Chapter three presentation - Market Segmentation ppt.

  1. 1. Norhasimah Hamim 2013838972 Nurul Farah Izzah Zailani 2013875064 Alfian Thomas 2013834132 Nurain Mohd Jais 2013269312 Norfadila Hamim 2013682628 CHAPTER THREE: STRATEGIC MARKET SEGMENTATION
  2. 2.  Levels of market segmentation  Market –driven strategy and segmentation  Activities and decisions in market segmentation  Defining the market to be segmented  Identifying market segments  Forming market segments  Finer segmentation strategies  Selecting the segmentation strategy Learning Objectives
  3. 3.  Segmenting markets is a foundation for superior performance by understanding buyer‟s needs and wants.  Market segmentation is the process of identifying and analyzing sub groups of buyers in a product-market with similar response characteristics (eg: budget, activities, time consideration & etc).  Companies should grab opportunities to provide wide ranging products.  For example: Airlines options to Dhaka, from Malindo Air, Biman Bangladesh, Regent Airways and MAS. Most of the carriers, offers different types of fares level and checked – in luggage. Introduction
  4. 4. Levels and Types of Market Segmentation (Exhibit 3.1)  Link to management vision & strategic intent of corporate strategy & emphasize products benefits that different types of buyers seek.  Example: Ticketing Department: i) Corporate Clients ii) Walk In/Phone Call Clients  Concerned with allocating resources around segment targets, including them in marketing plans & aligning organizational processes around them.  Example: Wholesaler Agent‟s conducting FAM trip.  Concerned with the marketing program changes needed to reach segment targets with advertising & promotions and with distribution systems. Example: Promoting MATTA Fair through various of channel distribution.
  5. 5.  Market segmentation should be considered early in development of market –driven strategy.  Exhibit .2: Segmentation in the Market –Driven Strategy Process. Market-Driven Strategy and Segmentation
  6. 6.  Market segmentation is the process of placing the buyers in a product- market into subgroups which can be indicated by the amount and frequency of purchase, loyalty to particular brand and other measures of responsiveness.  The opportunity for segmentation occurs when differences in buyers‟ demand (response) functions allow market demand to be divided into segments, each with different demand function.  Example: Redang Beach Resort offers 3 types of room categories, which are superior room, standard room and club deluxe room. Market Segmentation, Value Opportunities & New Market Space
  7. 7.  Market segment also can be refer as market niche which represents a small portion of the buyers in the total market.  Segmentation helps company to provide varieties of products or services as well as able to meet customer satisfaction by providing a value offering that matches the value proposition.  Company also may get opportunities to tap into new areas of value and create a unique space in market. It can be described in the Innovation Application.  Example:  Marriot is partnering with Ian Schroder to create the Edition boutique hotels aimed at younger, wealthier and more fashionable travelers.  Starwood has won recognitions for its W chain and is expanding its new Aloft concept. Market Segmentation, Value Opportunities & New Market Space
  8. 8.  Market targeting consists of evaluating and selecting one or more segments whose value requirements provide a good match with the organizational capabilities.  Positioning strategy is the combination of the actions management takes to meet the needs and wants of each market target.  The strategy consists of products and supporting services, distribution, pricing and promotion components.  Market segmentation lays the groundwork for market targeting and positioning strategies which skills and insight used in segmenting the market, will give a company competitive advantages by identifying buyer groups that will respond favorably to the firm‟s marketing efforts. Market Targeting and Strategic Positioning
  9. 9. Defining the market to be segmented Identifying market segments Forming market segments Finer segmentation strategies Selecting the segmentation strategy Activities & Decision in Market Segmentation
  10. 10. Defining the Market to Be Segmented Generic Level • Basic approaches in strategic marketing that can be adopted by any firms in any industry to improve competitive performance • A broad group of product/services that satisfy in general, yet similar need Product Type • Product category that offer specific set of benefit intended to satisfy a customer’s need & want in a specific way • Segmentation is shown by the differences in price, quality and features of the items/services Product Variant • Differences in product/services type may exist • Segment within a category
  11. 11. Level of competition Product Definition Illustrative Competitior Need/Want Satisfied Generic Health and beauty aids Consumer Product Companies Enhancement of health Product Type Shaving Equipment Gillette, Remington, Bic Shaving Product Variant Electric Razors Braun, Norelco, Remington, Panasonic Electronic Shaving EXHIBIT 3.4 Market Segmentation in the Health & Beauty Supplies Market
  12. 12. Level of competition Service Definition Illustrative Competitors Need/Want Satisfied Generic Inbound Market Inbound agents Malaysia destination Service Type Europe market Synergy Tour, Diethelm, Destino Tours Nature destination (beach, hill, highland, mangrove, sea etc.) Service Variant Italy Market Synergy Tours Beach Destination Example in Tourism Industry: Asian Trails (M) Sdn Bhd – DMC company
  13. 13. Identifying Market Segments 1. Segmentation variables 2. Characteristic of People & Organization 3. Product Use Situation Segmentation 4. Buyers’ Need & Preferences 5. Purchase Behaviour
  14. 14. • Use to divide the product market into segment involved few variables as below: – Demographic & Psychographic – Use Situation – Needs & preference – Purchase Behaviour 1. Segmentation variables
  15. 15. • Demographic – Age – Gender – Family size or life cycle – Income – Occupation – Education – Religion – Race – Generation – Nationality DEMOGRAPHIC & PSYCHOGRAPHIC • Psychographic – Social Class – Lifestyle – Personality/Attitude
  16. 16. • How buyer uses the product? • Example; purchasing a meal away from home for the purpose of entertainment • Domino’s USE SITUATION
  17. 17. • Include attitudes, brand awareness & brand preference • Example; people who practice healthy lifestyle, love to have healthy food for instance, sandwiches in their daily life • Subway NEEDS & PREFERENCE
  18. 18. • This variables describe brand-use and consumption (e.g: size and frequency of purchase) • Purchase decision making pattern that is a complex concepts of needs & desires which influenced societal role (parents, worker), social & cultural environment, aspiration • Example; McDonald PURCHASE BEHAVIOUR
  19. 19. • Consumer Market – Characteristic of people fall into 2 categories; 1) Geographic & demographic * Geographic location, useful for segmenting product-markets * Demographic information helps to describe group of buyers, 2) Psychographic (lifestyle & personality) * To develop market profiles 2. Characteristic of People & Organization
  20. 20. • Organizational Market – Characteristic that help in segmenting business market; size of the company, stage of industry development & stage of the value-added system 1)The extent of market concentration * Number of customers & their relative buying power 2) The degree of product customization * Supplier must tailor the product or services to each organizational buyer 2. Characteristic of People & Organization
  21. 21. • Boeing caters to the specific needs of air carrier purchasing commercial aircraft, adapting designs to meet customer priorities. • Nonetheless, the cost for customization are high and Boeing had to evaluate the value/cost relationship of its attempt to satisfy the needs of single airlines segments. Example; Boeing
  22. 22. Field Study Visit Malaysia destination Demographic, geography, psychographic Identify source of market Market Profile Tourism Malaysia – get tourist arrival statistic Analyze with field study outcome Develop market profile Market Concentration Attend tradeshow Invest on personnel based on targeted source of market Provide rep in respective country Product Customization Tailor-made packages Prepare itinerary in their language Sales Support in their language Example; Asian Trails (M) Sdn Bhd – DMC company Remark: Current practice in developing new market in Asian Trails (M) Sdn Bhd
  23. 23. • Market can be segmented based on how the product is used • Needs & preferences vary according to different use situations • Travel Agent – Outbound Agent: service domestic traveler who would like to travel in international country – Inbound Agent: service international traveler who would like to visit domestic destination – MICE Agent: service business traveler with the purpose of meeting, incentive, convention & exposition 3. Product Use Situation Segmentation
  24. 24. • Market can be segmented based on needs & preference that are specific to products and brands • Consumer Needs – Customer attempt to match their needs with the product/services that satisfy their need – Example: Asian Trails Travel - French Market (Marco De Vasco) prefer to stay in boutique hotel (limited unit, privacy & different concept from common accommodation) 4. Buyers’ Need & Preferences
  25. 25. • Attitudes – Buyer’s attitude towards brands are important because experience and research findings indicate that attitudes influence behavior – Example: Asian Trails Travel - India Market (SOTC) • Town area; Entertainment & shopping, cruise • Normal package – 7 days trip • KUL – Genting – Penang - SIN 4. Buyers’ Need & Preferences
  26. 26. • Perception – The process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world – Example: Asian Trails Travel - UK Market (Kuoni UK) • We have to carefully select/recommend our product to this market particularly • Do not oversell the product to avoid dissatisfaction experience throughout the trip 4. Buyers’ Need & Preferences
  27. 27. • Consumption Variables useful in segmenting consumer and business market • Level of product use may not necessarily identify the best value opportunities • Elements in classifying buying decision; – Their characteristic – Products to which they apply – Marketing Strategy implications of each type of purchase behaviour 5. Purchase Behaviour
  28. 28.  Developing new strategies segment targets – for certain target market  Developing new strategic segment target. Targets for some of the biggest brand.  E.g : COLGATE Forming Market Segments
  29. 29. Forming Market Segment  Requirements for Segmentation  Approaches to Segment Identification  Customer Groups Identification  Forming Groups Based on Response Differences
  30. 30. Requirements For Segmentation Is it worthwhile to segment a product – market ? E.g. Gillette – “one for all product” strategy in the razor market.
  31. 31.  Response Differences  Identifiable Segments  Actionable Segments  Cost vs. Benefits of Segmentation  Stability Over Time 5 requirements to evaluate potential segmentation strategy
  32. 32. a. Response Differences How customer response towards the product? E.g. Variable (geographic, demographic, psychographic and behavioral) vs. pricing Income (affluent, high, medium & low) response
  33. 33. b. Identifiable Segments  The differentiating attributes of the segments must be measureable so that they can be identified.  Can create a custom marketing mix for the specific group.  More unique products could be design to fulfill the distinguished criteria of the segment compared to segments with many similarities.
  34. 34. c. Actionable Segment  Must be able to do marketing program to promote and attract targeted market segment and provide services.
  35. 35. d. Cost vs. Benefits of Segmentation  Important to evaluate the benefits of segmentation.  Should generate more sales and higher margins.
  36. 36. e. Stability Over Time  Must show stability over time and must be consistent.  Prefer to target consumer segments that are relatively stable in terms of demographic and psychological factors and needs, and that are likely to grow larger over time.
  37. 37. Product Differentiation Market Segment  Offer something different from competitor.  Increase sales by creating a unique selling proposition.  E.g. Transportation
  38. 38. Approaches to Segment Identification  How to identified segment? Segment Identification Characteristic Response Profile Differences Eg : income, family size, demographic Eg : Frequent of purchase What type of people purchase this product?
  39. 39. Customer Group Identification  After the product-market of interest is defined, promising segments may be identified by using management judgment in combination with analysis of available information and/or marketing research studies.  When using the customer group identification approach, it is necessary to select one or more of the characteristics of people or organizations as the basis of segmentation.  Using these variables, segments are formed by:  Management judgment and experience  Supporting statistical analyses.  The objective is to find differences in responsiveness among the customer groups.
  40. 40. Management Insight & Available Information Product Market Segmentation Dimension for Hotel Lodging Services
  41. 41. Cross Classification Analysis HIGH VOLUME LOW PROFIT MEDIUM VOLUME LOW PROFIT LOW VOLUME LOW PROFIT HIGH VOLUME MEDIUM PROFIT MEDIUM VOLUME MEDIUM PROFIT LOW VOLUME MEDIUM PROFIT HIGH VOLUME HIGH PROFIT MEDIUM VOLUME HIGH PROFIT LOW VOLUME HIGH PROFIT R 10,000 P 30 Quality-Quantity Matrix Profit Percentage Classification according to more than one attribute at the same time. Revenue(RM)
  42. 42. Data Mining for Segmentation  The process of extracting previous unknown and actionable information from large and complex database.  There are two ways of doing this:  Based on the characteristics of the segments in advance.  Analyze the data and identify naturally occurring cluster of behavior by using a software.
  43. 43. Forecasting Tourist Expenditure Analyzing Profiles of Tourists Forecasting Number of Tourists Arrivals  Use of Data Mining in Tourism Data Mining for Segmentation
  44. 44. Segmentation Illustrations Illustrative Example: Gasoline Buyers Road Warriors Higher-income, middle-aged men, drive 25,000-50,000 miles a year, buy premium with a credit card, purchase sandwiches and drinks from the convenience store, will sometimes use carwash. 16% of buyers True Blues Men and women with moderate to high incomes, loyal to a brand and sometimes a particular station, frequently buy premium, pay in cash. 16% of buyers
  45. 45. Generation F3 (Fuel, Food & Fast) Upwardly mobile men and women, half under 25 years of age, constantly on the go, drive a lot snack heavily from the convenience store. 27% of buyers Homebodies Usually housewives who shuttle children around during the day and use whatever gas station is based on town or on route of travel. 21% of buyers Price Shoppers Not loyal to brand or station and rarely buy premium, frequently on tight budgets. 20% of buyers Segmentation Illustrations Illustrative Example: Gasoline Buyers
  46. 46. Segmentation Illustrations
  47. 47. Forming Group Based on Response Differences  The alternative to selecting customer groups based on descriptive characteristics is to identify groups of buyers by using response differences to form the segments.  An analysis of the customer base identified the following segments: programmed buyers (limited service needs), relationship buyers, transaction buyers, and bargain hunters (low price, high service).  Response difference approaches draw more extensively from buyer behavior information than the customer group identification methods.
  48. 48.  To define a group of people (consumers) according to the similarity of their answer to questions about products.  To identify groupings in which the similarity within group is high. Cluster Analysis
  49. 49. Characteristics of people/ organizations Consumer Markets Industrial/ Organizational Markets Age, gender, income, family size, lifecycle stage, geographic location, lifestyle Type of industry, size, geographic location, corporate culture, stage of development, producer/ intermediary Use situation Occasion, importance of purchase, prior experience with product, user status Application, purchasing Procedure (new task, modified rebuy, straight rebuy Buyers’ needs/ preferences Brand loyalty status, brand preference, benefits sought, quality, proneness to make a deal Performance requirements, brand preferences, desired features, service requirements Purchase behavior Size of purchase, frequency of purchase Volume, frequency of purchase Cluster Analysis
  50. 50. Select the product- market area Decide which brands compete in the product-market Collect buyers‟ perception Analyze data Prepare a map of attributes Plot consumers ideal preferences Evaluate solution Interpret the results to market-target Perceptual Map
  51. 51. Expensive Inexpensive GROUP II •Brand A •Brand B GROUP V High Quality GROUP III •Brand C GROUP IV GROUP I •Brand E Low Quality •Brand D Illustrative Consumer Perception Map
  52. 52. Illustrative Consumer Perception Map
  53. 53.  Assessing strengths and weaknesses relative to competing brands along certain criteria important to the customer.  Identification of competitive advantage for the brand.  Identifying market opportunities.  See how ideal points are moving. Uses of a Perceptual Map
  54. 54. Finer Segmentation Strategies  A company able to utilize finer segmentation strategies because of a combination of factors.  Highly sophisticated databases for accessing buyers can be used, and buyers‟ escalating preferences for unique products encourage considerations of increasingly smaller segments.
  55. 55. Logic of Finer Segments Customized Offerings Feasible because of extensive information flow, and comprehensive databases, computerized manufacturing systems, integrated value chains. Example: In Bubu Long Beach Resort, the services and products are customized for their market (international). Diverse Customer Base The requirements of an increasingly diverse customer base for many products are apparent. Example: Bubu Villa Long Beach in Perhentian Island built to cater higher-end international market that focus to a more personalized service. Close Customer Relationships By identifying customer value opportunities and developing cost-effective customized offerings, relationships can be profitable and effective in creating competitive barriers. Example: Personalized service during arrival at Shangri-La Rasa Ria, from checking in until room transfer.
  56. 56. Microsegmentation • Seeks to identify narrowly defined segments using one or more of the segmentation variables. • Example: Pink Coach for Ladies by KTM (Komuter) which emerge for the women travellers and users. Mass Customization • Providing customized products at prices not much higher than mass- produced items is feasible using mass customization concepts and methods. • Example: Malindo Air offering in-flight entertainment for its passengers with a selection of movies, games and music. Variety-Seeking Strategy • Intended to offer buyers opportunities to vary their choices in contrast to making unique choices – with alternatives, buyers may increase their total purchases of a brand. • Example: Accor Group of Hotels which offer varying level of accommodation such Ibis Style and Ibis Budget. Finer Segmentation Strategies
  57. 57. Finer Segmentation Issues:  How much variety should be offered to buyers?  Will too much variety have negative effects on buyers?  Is it possible to increase buyers‟ desire for variety, creating a competitive advantage?  What processes should be used to learn about customer preferences?
  58. 58. Deciding how to segment:  The choice of a segmentation method depends on:  The maturity of market  The competitive structure  The organization‟s experience in the market  It is important to maximize the available knowledge about the product-market.  An essential step is analyzing the existing customer base to identify group of buyers with different response behavior. Selecting the Segmentation Strategy
  59. 59. Customer Analysis Competitor Analysis Positioning Analysis Estimating Segment Attractiveness Strategic Analysis of Market  Each market segment of interest needs to be studied to determine its potential attractiveness as a market target  Major areas of analysis are:
  60. 60. Strategic Analysis of Market Customer Analysis • The objective is to find descriptive characteristics that are highly correlated to the variables used to form the segment • Example; Kuoni UK, has been requesting their clients/ potential clients to fill up a survey/ feedback form to gather up information on them. Competitor Analysis • Considers the set of key competitors currently active in the market in which the segment is located plus any potential segment entrants • Example; During Matta Fair, some company do have a representative that will explore and enquire on the other company products and services. In YSL Travel and Tour, they do enquiries calls
  61. 61. Strategic Analysis of Market Positioning Analysis • Involves some preliminary choices about positioning strategy • Should meet the needs and requirements of the targeted buyers at a cost that yields a profitable margin for the organization Estimating Segment Attractiveness • The financial and market attractiveness of each segment needs to be evaluated • As information availability growth, the evaluation also has the potential of identifying unattractive market segments • Example; In YSL Travel and Tour, they always ask their clients to give feedback on the packages that they purchased.
  62. 62. Segment „Fit‟ and Implementation  One important aspect of evaluating segment attractiveness are:  How well the segments match company capabilities,  Ability to implement marketing strategies around those segments  Building effective marketing strategy around market segmentation mandates an emphasis on actionability as well as technique and analysis.
  63. 63.  Because buyers differ in their preferences for products, finding out what these preferences are and grouping buyers with similar needs is an essential part of business and marketing strategy development.  Segment analysis and evaluation consider the strengths and limitations of each segments as a potential market target for the organization. Summary
  64. 64. Q&A and Discussion Session

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