kotler08_im_Marketingmanagement笔记.doc

Chapter 8: Identifying Market Segments and TargetsIDENTIFYING MARKET SEGMENTS AND TARGETS8 C H A P T E R LEARNING OBJECTIVESAfter reading this chapter, students should:q Know what are the different levels of market segmentationq Know how a company can divide a market into segmentsq Know how a company should choose the most attractive target marketsq Know what are the requirements for effective segmentationCHAPTER SUMMARY Target marketing involves three activities: market segmentation, market targeting, and market positioning.Markets can be targeted at four levels: segments, niches, local areas, and individuals. Market segments are large identifiable groups within a market. A niche is a more narrowly defined group. Marketers appeal to local markets through grassroots marketing for trading areas, neighborhoods, and even individual stores. More companies now practice individual and mass-customization. The future is likely to see more self-marketing, a form of individual marketing in which individual consumers take the initiative in designing products and brands. There are two bases for segmenting consumer markets: consumer characteristics and consumer responses. The major segmentation variables for consumer markets are geographic, demographic, psychographic, and behavioral. These variables can be used singly or in combination.Business marketers use all these variables along with operating variables, purchasing approaches, and situational factors. To be useful, market segments must be measurable, substantial, accessible, differentiable, and actionable. A firm has to evaluate the various segments and decide how many and which ones to target: a single segment, several segments, a specific product, a specific market, or the full market. If it serves the full market, it must choose between differentiated and undifferentiated marketing. Firms must also monitor segment relationships, and seek economies of scope and the potential for marketing to supersegments. They should develop segment-by-segment invasion plans. Marketers must choose target markets in a socially responsible manner. OPENING THOUGHT The first challenges presented in this chapter are the concepts of market segmentation and the segmentation processes used by marketing firms. Students may have difficulty understanding the various steps of the segmentation process as well as differentiating between target markets and market positioning. The instructor is urged to use personal examples of target marketsthe differences between the instructors age cohort and that of his/her studentsfor example in illustrating the different markets. Second, the concepts of consumer characteristics and responses may be new to many students as it applies across different age groups and different consumers. Students who have little contact with other people outside their sphere of influence may have a hard time realizing that other consumers hold differing views and have different usages for product and services. Suggestions to help the students understand the degree of sophistication used by marketers include using the Claritas PRIZM Web site during the class lecture, pinpointed by a students zip code for example, to show the amount of information available to marketers. Additional examples for classroom demonstrations include asking students to research information off the Internet on their particular favorite product and information by their zip code or other criteria. Many firms provide differing products to different consumers, Toyota, for example offers the Toyota line of cars and the Lexus family of cars. Both of these brands can be used to illustrate product differentiation and target marketing. TEACHING STRATEGY AND CLASS ORGANIZATIONPROJECTS1. Students should turn in their market segmentation segment of their semester-long new product or service report. 2. Students should select a product or service that they are familiar with, such as jeans, computers, or personal CD players. Once these items are selected, the students must undertake research into the specific items: target market and market segmentation. Student reports should contain information as to: How large is the target market, what is the future growth potential of this target market, how do/does the marketer reach this target market and so on? The second section of this project is for the students to “re-position” this product to another market segment. For example, if the students select personal CD players as there product of choice, and confirm that the target market for this is Gen Y, then the students should define how the manufacturers of personal CD players will attempt to re-position the product to attract the baby boomer generation to increase their purchases of personal CD players. 3. Sonic PDA Marketing Plan Market segmentation is an important part of any marketing plan. It is the first step in the STP process that precedes any marketing strategy: segmentation, targeting, and positioning. The purpose of STP is to identify and describe distinct market segments, target-specific segments, and then pinpoint the differentiating benefits to be stressed in marketing. In your role as Jane Melodys assistant, you are responsible for market segmentation and targeting for Sonics PDA product. Look at the SWOT Analysis, Market Description, and Competitive Review sections and then answer: Which variables should Sonic use to segment its consumer markets? Which variables should Sonic use to segment its business markets? How can Sonic evaluate the attractiveness of each identified segment? Should Sonic pursue full market coverage, market specialization, product specialization, selective specialization, or single-segment concentration? Why?Summarize your conclusions in a written marketing plan or enter them in the market Demographics and Target Markets sections of Marketing Plan Pro. Also note any additional research you may need in the Marketing Research Section of Marketing Plan Pro.ASSIGNMENTSSmall Group Assignments1. The opening vignette states that the population of Americans over 50 years of age will swell to 115 million in the next 25 years. In small groups, have the students detail the demographic information on this group of Americans (ages, buying power, perception of themselves, etc.) and suggest some key marketing opportunities mined from this information. For example, if seniors often make buying decisions based on lifestyle and not age, as the vignette mentions, does this information present marketing opportunities for such industries as travel, bio-medical industries, at-home exercise equipment, and automobiles? If so, who is going to be affected and to what extent? Student answers should contain detailed demographic information about this target market and should draw a connection between what the information says and what is the potential for marketers. 2. Recently a number of drug companies have developed medicines for erectile dysfunction, for which advertising and promotional expenditures have been phenomenal. These facts show that there is a very real market out there and it is quite large and potentially lucrative for the drug companies. In small groups, have the students examine the value of this target market in terms of population, affected population, potential income, etc. Secondly, using the information obtained during their research, challenge the students to answer this question: Did the “discovery” of a drug for erectile dysfunction prompt the “marketing” or did the results of marketing research uncover a latent “need” that caused the drug companies to “discover” a cure? Individual Assignments1. The firm Claritas, Inc. has developed a geoclustering system called PRIZM. Assign students the task of visiting this site and collecting the marketing information available for their particular zip code (home or schools). In a report, ask the students to comment on the accuracy, implications of, and usefulness, of this information for marketers. How can a marketer “target” his/her audience using PRIZM? 2. Figure 8.4 outlines the major VALS segmentation (). Students are asked to characterize either themselves, family members, or others and place them in one of these groups. How closely does person the student selected, “fit” the profile? If so, can the marketer rely on these characterizations in mapping out marketing plans? Are there major differences? If major differences exist, what impact does this have on marketers developing marketing plans? Think-Pair-Share1. Marketing Insight, Marketing to Generation Y, is a compilation of thoughts and notes from a number of sources. Ask the students to read each of these sources and be prepared to share their thoughts as well as comments about what they have read in class. Specifically, are these authors “on-target” when it comes to characterizing their generation? Are these insights an oversimplification of the buying habits of their generation? Are there any “missing insights” from these readings that will have a profound impact on future marketing strategies? 2. Effective segmentation criteria are necessary for target market identification. Market segments must be measurable, substantial, accessible, differentiable, and actionable. However, not all segmentation schemes are usefulthe text uses table salt buyers for example. Students are to provide three examples of those products or services in which: segmentation criteria are not necessary and three examples of where segmentation criteria are an absolute necessity. Students are to exchange their findings and explain these differences. Additional discussion (or assignment) could be to have the students devise a segmentation strategy for the products or services that they found not currently, where segmentation criteria are necessary. In other words, to “create” a segmentation distinction for“table salt”! MARKETING TODAYCLASS DISCUSSION TOPICSThe marketing of potentially harmful products to vulnerable groups sometimes generates public outcries. We have seen the banning of all television advertising for tobacco products and other restrictions on advertising and promotional activities for this industry. Using the steps in the segmentation process from Table 8.3 identify the segments for the target markets for one of these potentially harmful industries. Who are the target markets and what do they “look like”? Finally, given that we have seen an increase in the “science” of target marketing, should a firm in a potentially harmful industry (tobacco or alcohol companies for example) continue to press its target marketing knowledge? Is the firm taking undue advantage of vulnerable groups by its continuing development of market segmentation information? END-OF-CHAPTER SUPPORT MARKETING DEBATEIs Mass Marketing Dead? With marketers, increasingly adopting more and more refined market segmentations schemes fueled by the Internet and other customization effortssome critics claim that mass marketing is dead. Others counter that there will always be room for large brands that employ marketing programs targeting the mass market. Take a position: Mass marketing is dead versus mass marketing is still a viable way to build a profitable brand. Pro: People are consumers and people have a number of basic personal and societal needs that transcends individuality. Certain basic human physical needs (food, clothing, and shelter, for example) can be best met through mass marketing. In addition, consumers desire low prices and functionality in some of their basic products and services. Mass marketing allows the firm to foster the lowest price through economies of production, distribution, and marketing. Additionally, people like to have some degree of un-complications in their daily life that is best served through mass produced products. Asking the consumer to make too many choices, can backfire on marketers as it can overly complicate and stress consumersfor example, the design of a new home can be both a rewarding and stressful experience; the intended owner(s) is(are) asked to make literally hundreds of decisions about size, floor plans, colors, and options throughout the process. Not complicating a consumers life, through mass production and mass marketing of products can create a viable marketing niche for companies. Con: People are consumers and with the plethora of product and service choices available to solve their problems today, a firm must produce individual and customized products to compete. Basic human needs and wants can be delivered to the consumer by a wide range of choices. Technology has given the consumer the power and ability to interact with manufacturers in producing the exact product, with the exact features, and at the target price desired. Consumers are better educated and better informed than previous generations. Consumers are also more sophisticated than ever before. These increases in information, technology, and sophistication are causing firms to respond to the consumers wishes for individuality. Accepting the concept of “individuality” in the production of goods and services is the only option for many firms. Individuality and the service that that concept demands can lead to a “supplier-consumer” relationship that can and will build strong brand preferences. Those firms who choose not to compete or fail to compete in these arenas run the risk of falling behind competition and in experiencing the subsequent losses in market share and profits. MARKETING DISCUSSIONDescriptive Versus Behavioral Market Segmentation SchemesThink of various product categories. How would you classify yourself in terms of the various segmentation schemes? How would marketing be more or less-effective for you depending on the segment involved? How would you contrast demographic versus behavioral segment schemes? Which ones do you think would be most effective for marketers trying to sell to you? Suggested Response:Each students answer will vary depending upon the product chosen. However, all answers should contain some of the following terms. Niche markets Local marketing Customerization marketing Geographic segmentation Age and life-cycle stage Life stage Gender Income Generation Social class Psychographic segments (VALS) Behavioral variables Usage rates Buyer-readiness stages Loyalty statusMARKETING SPOTLIGHTHSBCDiscussion Questions1) What have been the key success factors for HSBC?a. Advertising campaigns that illustrate HSBCs local connection to the countries and markets that they are doing business. b. HSBCs success rests on its ability to understand the local markets and niche markets in the countries that they reside.2) Where is HSBC vulnerable?a. It must continue to understand the local market and to continue to make the “connection” with local communities.3) What should they watch out for?a. Rapid changes to their target markets (demographic changes, psychological changes, etc.) in the local and national levels.4) What recommendations would you make to HSBCs senior marketing executives going forward? a. Do not get complacent or overly comfortable with their successes. Avoid becoming “big” for “bigness sake.” 5) What should they be sure to do with their marketing? a. Continue to capitalize on niche markets, local connections to the communities, and continue to investigate the marketing forces of their markets on an individual basis. Do not try to create “generalizations” for the sake of internal efficiencies. DETAILED CHAPTER OUTLINEMarkets are not homogeneous. A company needs to identify which market segments it can serve effectively. Such decisions require a keen understanding of consumer behavior and careful strategic thinking. To compete more effectively companies are now embracing target marketing. Effective target marketing requires that marketers: Identify and profile distinct groups of buyers who differ in their needs and preferences. Select one or more market segments to enter. For each target market, establish and communicate the distinctive benefit(s) of the companys market offering.Levels of Market Segmentation The starting point for discussing segmentation is mass marketing. In mass marketing, the seller engages in the mass production, mass distribution, and mass promotion of one product for all buyers.A) The argument for mass marketing is that it creates the largest potential market, which leads, to the lowest costs that in turn can lead to lower prices or higher margins.Segment Marketing A market segment consists of a group of customers who share a similar set of needs and wants.A) The marketer does not create the segments.B) The marketers task is to identify the segments and decide which one(s) to target. C) A flexible market offering consists of two parts:1) A naked solution containing the product and service elements that all segment members value.2) Discretionary options that some segment members value.D) Market segments can be defined in many different ways:a. One way to carve up a market is to identify preference segments.b. Homogeneous preferences.c. Diffused preferences.d. Clustered preferences. Figures 8.1 (a), 8.1 (b), and 8.1 (c) show the differences. Review Key Definitions here: mass market, flexible market offering, naked solutions, and discretionary optionsNiche Marketing A niche is a more narrowly defined customer group seeking a distinctive mix of benefits. Marketers usually identify niches by dividing a segment into sub-segments.A) Niche marketers presumably understand their customers needs so well that the cust