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Enterprise Marketing

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Title: No Slide Title Author: Benson Honig Last modified by: Ed Created Date: 5/28/1995 4:33:00 PM Document presentation format: On-screen Show (4:3) – PowerPoint PPT presentation

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Title: Enterprise Marketing


1
Enterprise Marketing
  • Edward Gallagher MBA
  • fasteddieg2001_at_yahoo.co.uk

2
Identifying 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.

3
Market Segmentation Case Study Reebok
  • Question
  • Is there the perfect running shoe (sneaker)?
  • Answer No
  • Instead, there are perfect running shoes.

4
Case 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?

5
Examples 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

6
Reebok 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

7
Celebrity 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.

8
Reebok 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.

9
Reeboks 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.

10
Reeboks 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.

11
Definitions
  • 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

12
Ways 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.

13
Reebok 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
14
Segmentation 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
15
When 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

16
Ways to segment markets
  • Geographic customer characteristics
  • Demographic customer characteristics
  • Psychographic customer characteristics
    lifestyle.
  • Buying situations
  • Benefits/features sought
  • Usage/patronage

17
Executing 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

18
Positioning
  • Definition The space a product occupies in
    consumers minds on important features, relative
    to competitors
  • Examples
  • 7-up The Un-cola
  • Volvo Safety

19
Homework
  • 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
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