1. Four Basic Types of Opportunities

2. Examples of Different Types of Opportunities
• Market Penetration
– Arm & Hammer promotes new uses of its baking soda
• Market Development
– Marriott Hotels target families for weekend to rent rooms
filled by business travelers during the week
• Product Development
– Microsoft develops a new version of its Windows
operating system to appeal to the people who bought an
earlier version but now want more features
• Diversification
– Reliance entering in to Telecom

3. Marketing Strategy and the Marketing Mix

4. Market segmentation is the division of a market into
distinct groups of buyers who have distinct needs,
characteristics, or behavior and who might require
separate products or marketing mixes
Market segment is a group of consumers who
respond in a similar way to a given set of marketing
efforts
Market targeting is the process of evaluating each market
segment’s attractiveness and selecting one or more
segments to enter

5. Market positioning is the arranging for a product to
occupy a clear, distinctive, and desirable place relative
to competing products in the minds of the target
consumer
 Marketing mix is the set of controllable tactical
marketing tools—product, price, place, and
promotion—that the firm blends to produce the
response it wants in the target market

6. Marketing Mix

7. MARKETING STRATEGY
MASS MARKET MULTISEGMENT CONCENTRATION
STRATEGY STRATEGY STRATEGY
Organization’s Organization’s Organization’s
Single Several Single
Marketing Mix Marketing Mixes Marketing Mix
A D F
Segment
Segment
Segment
Segment
Mass
Market A B C D E F A B C D E

8. Target Markets
Targeting:
Selecting which segments in a market
are appropriate to focus on and
designing the means of reaching them.

9. Criteria for Effective Segmentation
1. Measurability
2. Accessibility
3. Durability
4. Differential Responsiveness

10. Stages in Developing Market Segmentation Strategies
Develop a market segmentation strategy
1 2 3 4 5 6
Determine
Define overall Identify Evaluate desired
product market distinguishing Describe approaches for Select target positioning and
in which characteristics segments potential & market then develop
company of segments or likely success marketing mix
operates bases for to achieve
segmentation desired position

11. Bases for Segmentation
 Demographics
 Geographic
 Psychographics & Lifestyles
 Behavioral Segmentation

12. Segmentation Variables
Geographics
Nation/Region
State/Region
Age City/Neighborhood
Gender Climate/Population
Income density Market density
Buying Power
Psychographics
Demographics
Expenditure patterns Potential
Occupation Personality
Consumer
Education Lifestyle
Segments
Race or nationality
Family life cycle
Decisions
Social class
Amount of usage
Type of usage
Brand loyalty
Behavioral

13. Demographic Dimensions
• Important operational dimensions for
understanding market segments and
developing marketing mixes
– Much good data is available
• Important for determining size of consumer
target markets
– Is the market substantial?
• Seeing demographic trends helps identify
opportunities
– Shifts in age distribution
– Geographic growth/decline

14. Income Distribution
• Growth in real income has slowed down
• Higher income groups still have much of the
spending power
• DISPOSABLE INCOME
– Income that is left after taxes
• DISCRETIONARY INCOME
– What is left of disposable income after paying
for "necessities"

15. Characteristics and Attitudes of Middle and Lower Classes
• Middle classes • Lower classes
– Plan and save for the future – Live for the present
– Analyze alternatives – Have simplistic ideas about
– Understand how the how things work
world works – Feel controlled by the world
– Feel they have opportunities – Want help with decision
– Willing to take risks making
– Confident about decision – Want short-run satisfaction
making
– Want long-run quality
or value