Title: Enterprise Marketing
1 Enterprise Marketing
- Edward Gallagher MBA
- fasteddieg2001_at_yahoo.co.uk
2Identifying Market Segments and Targets
- Review
- Marketing is expensive, time consuming and
resource intensive. - Resources, time and money are limited
- Therefore
- Target your market Identify your market segment
and focus your marketing efforts towards it.
3Market Segmentation Case Study Reebok
- Question
- Is there the perfect running shoe (sneaker)?
- Answer No
- Instead, there are perfect running shoes.
4Case Study Reebok
- Sneakers industry sales are a 16 billion per
year in the US. - Key competitors Nike, Reebok, Adidas, Puma, New
Balance. - 100s of models. Large consumer choice
- How do you do you differentiate your products?
5Examples of differentiation
- Nikes Swooshless line Low cost (40) sold
exclusively at Wal-Mart - Adidas 1 incorporating a computer and thin
sensor to monitor shock and adjust sole
stiffness. (250) - Puma for teenagers target teenagers with cool,
fashionable, low-tech sneakers sold at teen
stores - New Balance target seniors with comfortable
walking shoes with choices of wider and narrower
widths
6Reebok Targets a new market segment
- Recognizes that many urban youths wear sneakers
as a fashion statement. - They have little interest in athletics
- Dominant competitor is this segment is Nike.
- Reebok develops a new segments called, Street
Fashion - Reebok calls the product line S. Carter
collection
7Celebrity Endorsements
- Nike revolutionized the sneaker industry with
celebrity endorsements - Nike signed famous athletes such as Michael
Jordan to promote their products. - Celebrities are social proof.
8Reebok S. Carter Collection
- Reebok deviated from the tradition of signing
famous athletes. - Instead, they signed hip hop star Jay-Z to
promote the S. Carter Collection. - The result 100 million in sales and the
fastest selling shoes in Reeboks history.
9Reeboks other endorsement deals
- Reebok signed with Chinese basketball star Yao
Ming to promote basketball shoes in China. - Yao Mings contact is worth 70 million dollars.
- Yao Ming agrees to help Reebok market their
products in his native country China.
10Reeboks other endorsement deals.
- Reebok signed Venus Williams to promote their
tennis product line. - Reebok signed with the NBA and the NFL to be
their exclusive team uniform providers. - Reebok will offer NBA and NFL branded shoes and
clothing to consumers.
11Definitions
- Market Segmentation Sorting potential buyers
into groups that have common needs and will
respond similarly to a marketing action - Product Differentiation Strategy of using
different marketing mix activities, such as
product features and advertising, to help
consumers perceive a product as being different
and better than competing products
12Ways Reebok Segments Markets
- Age segments Teenagers are more than 32 of
total sales - Gender segments Men segment buys more but Women
segment has higher growth - Price segments 62 of sneakers cost less than
50 - Sports segments Running shoes are 1 (29)
sales, basketball shoes 2 (21), cross trainers
3, (13). Basketball shoes sales increasing,
cross trainers declining slightly. - Lifestyle segments 75 of sales are for casual,
non-athletic use. Athletic shoes are more
profitable with prices rising dramatically.
13Reebok Market Product grid
Group Running shoes Aerobic shoes Tennis shoes Basket ball shoes Walking shoes Cross-training S. Carter
Runners P P
Exercise P P
Tennis P P
Basket ball P P
Walkers S S S S P P
Comfort/ style S S S S S S
Street fashion P
14Segmentation Linking needs to Actions
Identify Market Needs Features Benefits Cost Qual
ity Convenience
Execute Marketing Program Product Price Promotion
Place
Process of segmenting and targeting markets
15When should the market be segmented?
- There is a potential for increased profit
- There is similarity of needs within a market
segment - There is a difference of need among market
segments - Potential of marketing action to reach a segment
- Simplicity and cost of assigning potential buyers
to a segment
16Ways to segment markets
- Geographic customer characteristics
- Demographic customer characteristics
- Psychographic customer characteristics
lifestyle. - Buying situations
- Benefits/features sought
- Usage/patronage
17Executing segment Marketing
- Group products to be sold in categories based on
features, benefits, price - Develop a Market-Product grid, estimate the size
of the market - Select target markets
- Take marketing actions to reach target markets
18Positioning
- Definition The space a product occupies in
consumers minds on important features, relative
to competitors - Examples
- 7-up The Un-cola
- Volvo Safety
19Homework
- Watch lecture from Malcolm Gladwell What We Can
Learn From Spaghetti Sauce http//www.vidoemo.co
m/yvideo.php?iaUlpQUFocWuRpVWVSNlkmalcolm-gladwe
ll-what-we-can-learn-from-spaghetti-sauce