Market Segmentation, Targeting and Positioning Zou Deqiang, Ph. D School of Management, Fudan University Apri16,2008
1 Market Segmentation, Segmentation, Targeting and Targeting and Positioning Positioning Zou Deqiang, Ph.D. School of Management, Fudan University April 16, 2008
Chapter Questions What are the requirements for effective segmentation? What criteria can a company use in selecting attractive segments to enter through target marketing How can a firm choose and communicate an effective position? How are brands differentiated? O Copy rights reserved, Zou Deqiang
2 2 © Copy rights reserved, Zou Deqiang Chapter Questions • What are the requirements for effective segmentation? • What criteria can a company use in selecting attractive segments to enter through target marketing? • How can a firm choose and communicate an effective position? • How are brands differentiated?
Case Study P&G- Segments the Market Strategy The Payoff Sells multiple brands P&G generates revenues within the same product in excessive of $4 billion in category for detergents U.S. laundry detergent soaps, and other goods market alone Each brand features a Tide has 34% share of different mix of benefits powder and 24% share of and appeals to a different liquid market segments segment Combined all P&G brands Product modifications account for 75 share of appeal to different niches powder and 55% share of within certain segments liquid detergent markets O Copy rights reserved, Zou Deqiang
3 3 © Copy rights reserved, Zou Deqiang Strategy • Sells multiple brands within the same product category for detergents, soaps, and other goods. • Each brand features a different mix of benefits and appeals to a different segment. • Product modifications appeal to different niches within certain segments. P & G – Segments the Market Segments the Market Case Study Case Study The Payoff • P&G generates revenues in excessive of $4 billion in U.S. laundry detergent market alone. • Tide has 34% share of powder and 24% share of liquid market segments. • Combined, all P&G brands account for 75% share of powder and 55% share of liquid detergent markets
The Importance of STP The heart of modern strategic marketing can be described as STP marketing- namely, segmenting, targeting, and positioning. This does not obviate the importance of LGD marketing-/unch, golf, and dinner but provides the broader framework for strategic success in the marketplace Philip Kotler O Copy rights reserved, Zou Deqiang
4 4 © Copy rights reserved, Zou Deqiang The heart of modern strategic marketing can be described as STP marketing - namely, segmenting, targeting, and positioning. This does not obviate the importance of LGD marketing - lunch, golf, and dinner - but provides the broader framework for strategic success in the marketplace. Philip Kotler The Importance of STP
Marketing Analysis (The 5Cs Customers Company Competitors Collaborators Context Market Target Market Product and Service Segmentation Selection Positioning Creating value Marketing Mⅸ(The4Ps Product and Service Place chane Promotion Capturing Pricing alue Customer Customer Sustaining Acquisitio Retention value Profit
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