Mass Marketing The firm engages in the mass production, mass distribution, and mass promotion of one product for all buyers Buyers can have the Model T in any color they want. as long as it's black Henry Ford O Copy rights reserved, Zou Deqiang
6 6 © Copy rights reserved, Zou Deqiang Mass Marketing • The firm engages in the mass production, mass distribution, and mass promotion of one product for all buyers Buyers can have the Model T in any color they want … as long as it’s black. Henry Ford Buyers can have the Model T in any color they want … as long as it’s black. Henry Ford
Target Marketing Target marketing requires marketers to take three major steps ldentify and profile distinct groups of buyers who differ in their needs and preferences(market segmentation) Select one or more market segments to enter (market targeting For each target segment, establish and communicate the key distinctive benefit(s)of the company's market offering(market positioning) 7 O Copy rights reserved, Zou Deqiang
7 7 © Copy rights reserved, Zou Deqiang • Target marketing requires marketers to take three major steps: ¾Identify and profile distinct groups of buyers who differ in their needs and preferences (market segmentation). ¾Select one or more market segments to enter (market targeting). ¾For each target segment, establish and communicate the key distinctive benefit(s) of the company’s market offering (market positioning). Target Marketing
Levels of segmentation Mass Segment Niche Local Individual- Customization The key distinction is between mass marketing and segment marketing 8 O Copy rights reserved, Zou Deqiang
8 8 © Copy rights reserved, Zou Deqiang • Mass • Segment • Niche • Local • Individual- Customization The key distinction is between mass marketing and segment marketing Levels of Segmentation
Area of potential for market segmentation One-to marketing Increasing Zone of market flexibility segmentation Mass market Increasing market granularity 9 O Copy rights reserved, Zou Deqiang
9 9 © Copy rights reserved, Zou Deqiang Area of potential for market segmentation
Steps in STP Marketing Market Market Market Segmentation Targeting Positioning 1. Identify 3. Evaluate 5. Identify segmentation attractiveness possible variables and of each positioning concepts for segment the segment each target market segment 4. Select the 2. Develop target 6. Select profiles of segment(s) develop, and communicate resulting the chosen segments positioning concept O Copy rights reserved, Zou Deqiang
10 10 © Copy rights reserved, Zou Deqiang Steps in STP Marketing 1. Identify segmentation variables and segment the market 2. Develop profiles of resulting segments Market Segmentation 3. Evaluate attractiveness of each segment 4. Select the target segment(s) Market Targeting 5. Identify possible positioning concepts for each target segment 6. Select, develop, and communicate the chosen positioning concept Market Positioning