Market Driven Strategy. W. Rofianto, ST, MSi

Transcription

1 Market Driven Strategy W. Rofianto, ST, MSi

2 Development of Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept

3 Marketing Marketing Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (AMA 2007)

4 Market Driven Strategy Make and Sell Sense and Response

5 Marketing at Strategic Level Consumer Research Segmentation Targeting Positioning Positivist (quantitative) Interpretivist (qualitative) common needs or characteristics One or more segments to pursue benefits unique selling proposition

6 Market Driven Strategy Capabilities for learning about customers and markets Market-driven strategy is a market sensing and learning processes Competitive strength come from superior customer knowledge To deliver a customer experience, less formal research, more one-to-one communication Consumer Village Watch people activity Understand what it is like to live on $50/month Social networking sites

7 Market Sensing Process Market sensing processes Building Open-minded inquiry processes Analyzing competitors actions Listening to front-line employees Searching for latent customer needs Scanning the peripherary of the market Encouraging experimentation

8 Marketing Information and Knowledge Resources Marketing information and knowledge resources 1. Scanning processes 2. Specific marketing research studies Internal and external marketing information resources In-company resources Open source resources Research agency resources

9 Market Sensing Grid A Framework for Market Sensing Probability of the Event Occurring Effect of the Event on the Company High Utopia Danger Medium Things to Watch * 1=Disaster, 2=Very bad, 3=Bad, 4=Neutral, 5=Good, 6=Very good, 7=Ideal Low Field of Dreams Future Risks

10 Marketing Research Consideration Marketing research project Defining the problem Understanding the limitations of the research Quality of the research Costs Evaluating and selecting suppliers Research methods Research Project and Scope Research Objectives Research Questions Planned Outcomes

11 Why Segmentation: From Mass Markets to Micro Markets OLD NEW CONSUMERS Passively receiver Empowered media users control and shape content ASPIRATIONS To keep up with To standout from the the crowd crowd TV CHOICE Three networks Hundreds of channels plus video on demand MAGAZINES Age of the big Age of the special interest glossies: Time, magazine for every age Life, Newsweek and affinity group ADS Everyone hums Talking to a group of one BRANDS Rise of the big, Niche brands, product ubiquitous brands extensions and mass from Coca-Cola customization mean many to Tide product variations Source: Anthony Bianco, The Vanishing Mass Market, Business Week, July , 58-62

12 Segmentation Response differences Stability over time Identifiable segments Segmentation Requirements Actionable segments Favorable cost/benefit

13 Market Segmentation Levels Levels and types of market segmentation Strategic Segmentation Managerial Segmentation Vision Strategic intent Product benefits Operational Segmentation Resource allocation Alignment Planning Marketing programs - Advertising - Sales - Distribution

14 Segmentation and Market-Driven Strategy Segments Value Opportunities Capabilities/ Segment Match Target(s) Positioning Strategy

15 Segmentation Strategy 1. Strategic Identifying market segments segmentation (5) Segmentation variables Characteristics of people and organizations Consumer markets Organizational markets Product use situation segmentation Buyers needs and preferences Purchase behavior 2. Strategic analysis of market segments Customer analysis Competitor analysis Positioning analysis Estimating segment attractiveness Segmentation fit and implementation

16 Market Segments Identification Illustrative Segmentation Variables Characteristics of people/ organizations Consumer Markets Age, gender, income, family size, lifecycle stage, geographic location, lifestyle Industrial/ Organizational Markets Type of industry, size, geographic location, corporate culture, stage of development, producer/ intermediary Use situation Buyers needs/ preferences Purchase behavior Occasion, importance of purchase, prior experience with product, user status Brand loyalty status, brand preference, benefits sought, quality, proneness to make a deal Size of purchase, frequency of purchase Application, purchasing Procedure (new task, modified rebuy, straight rebuy Performance requirements, brand preferences, desired features, service requirements Volume, frequency of purchase

17 Market Segment Example Best Buy segmentation strategy Jill s - soccer moms Barry s - wealthy professionals Buzz s - tech enthusiasts Ray s the family man Mr Storefront the small business customer Carrie s young, single females Helen and Charlie s older couples whose children have left home

18 Market Segmentation Example Segment Dimensions for Hotel Lodging Services

19 Illustrative Example: Gasoline Buyers Road Warriors True Blues Generation F3 (Fuel, Food & Fast) Homebodies Price Shoppers Higher-income, middle-aged men, drive miles a year buy premium with a credit card purchase sandwiches and drinks from the convenience store will sometimes use carwash Men and women with moderate to high incomes, loyal to a brand and sometimes a particular station frequently buy premium, pay in cash Upwardly mobile men and women - half under 25 years of age - constantly on the go drive a lot snack heavily from the convenience store Usually housewives who shuttle children around during the day and use whatever gas station is based on town or on route of travel Not loyal to brand or station and rarely buy premium frequently on tight budgets. 16% of buyers 16% of buyers 27% of buyers 21% of buyers 20% of buyers

20 Perceptual Mapping Illustrative Consumer Perception Map Expensive Brand E GROUP II Brand A Low Quality Brand D GROUP I Brand B GROUP III GROUP V Brand C High Quality Inexpensive GROUP IV

21 Segmentation Fit for Implementation Internal Compatibility High Market Segment Attractiveness Low High Attractive segments that match with company capabilities Unattractive segments but with match to company capabilities Low Attractive segments but with poor match with company capabilities Unattractive segments that do not match with company capabilities

22 Finer segmentation strategies Logic Customized offerings Diverse customer base Close customer relationships Finer segmentation strategies Micro-segmentation Mass customization Variety-seeking strategy

23 Market Sensing Barriers Barriers to market learning Managers reject new insights/information Rigid organizational structures and inflexible information systems Politics favour the status quo Overwhelming pressure of existing business operations Tendency to active inertia

24 Market Targeting Strategy The Marketing Targeting Decision Identities the People or Organizations in a Product-Market Toward Which a Firm Directs Its Positioning Strategy Guided by an understanding of: The product-market Its buyers Firm s capabilities resources Competition Effective targeting and positioning strategies are essential in gaining and sustaining superior performance

25 Targeting Alternative Market Targeting Alternatives Segments Clearly Defined Selective Targeting Target Selected Niche(s) Product Specialization Target Multiple Segments Product Variety Extensive Targeting Differentiated But Segments Not Clearly Defined

26 Targeting in an Emerging Market Buyer Diversity Segmentation limited due to similarity of buyers preferences Industry Structure Typically small new organizations Limited access to resources Capabilities and Resources Unique benefit (differentiation) strategy rather than low-cost First-mover advantage Targeting Strategy Single target or a few broad segments

27 Strategic Positioning Initiatives POSITIONING CONCEPT The desired positioning of the product (brand) by targeted buyers TARGET MARKET POSITIONING EFFECTIVENESS How well management s positioning objectives are achieved for the market target POSITIONING STRATEGY The combination of marketing actions used to communicate the positioning concept to targeted buyers

28 Positioning Concept Symbolic Functional POSITIONING CONCEPT Experiential

29 Positioning Issues 1. The positioning concept applies to a specific brand rather than all the competing brands that compose a product classification 2. The concept is used to guide positioning decisions over the life of the brand 3. Multiple concepts are likely to confuse buyers and may weaken the effectiveness of positioning actions

30 Positioning Errors Positioning Errors Under-positioning customers have only vague ideas about the company and do not perceive anything distinctive about it Over-positioning Customers have too narrow an understanding of the company, product, or brand Confused positioning Frequent changes and contradictory messages confuse customers Doubtful positioning claims made for the product or brand are not regarded as credible

31 Targeting and Positioning Product Strategy Promotion Strategy Positioning Strategy Market Target Distribution Strategy Price Strategy

32 Customer and Competitor Research Methods for Determining Positioning Effectiveness Analytical Positioning Models Test Marketing

33 Exercise 1. Read a brief story of a product example in an emerging market 2. Gather an additional information as needed than discuss the situation with your team mate 3. Make a perceptual map to illustrate the situation, consist of related brands positioning and consumer clusters 4. Select the appropriate target market and positioning srategy for the product situation 5. Determine several actions should be taken on each marketing mix components related to the target market and positioning strategy

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