IPL Case to be discussed keeping in mind the following points:
-What will happen to IPL?
-What has happened actually to IPL?
-How Franchise's work?
*3 Cases to be written by Feb-March 2011
1)Big-Boss's Marketing Strategy.
2)Mktg of High Tech Products.
3)IPL Case-4.
Revision of Segmentation types:-
1)Geographic:- Refers to division of mkt into diff geographical units like nations,states,regions,countries etc.One of the major geographical segmentation variables relevant to South Asia is division of mkts into rural and urban areas.These areas differ on number of imp parameters such as literacy levels,income,spending power,and availability of infrastructure,social and cultural orientations of people that affect the mkt potential,buying pattern and habits.Eg: Consumers in southern states like Tamil Nadu tend prefer freshly brewed coffee,while in other states tea is preffered,Some prefer strong tea from Assam while others prefer Nilgiri tea.
2)Demographic:-Division of mkt on the basis of variables like age,family size,family life cycle,gender,income,occupation,education,religion,race,generation,nationality,social class etc.These variables are popular bcoz they are often asociated with consumer needs and wants.Eg:
a)Acc to age & Life-cycle:- TV channels in India indicate segmentation based on age and life cycle, Aastha or Sanskar for older generation.Cartoon Network,Disney,Pogo for children; MTV and channel V for youngsters.
b)Acc to life-stage: Al Habib bank of Pakistan targets senior citizens with special savings schemes that yield a higher interest rate.
c)Gender based: Men and Women have diff attitudes and behave differently,based partly on genetic makeup and partly on socialization.Raymonds masculine brand Park Avenue and feminine brand as Be.
d)Income based:- Its a basic segmentation variable which determines the ability of consumers to participate in mkt exchange.However,income does not always predict the best consumers for a given product.Nirma washing powder was launched as the lowest priced detergent in India targeted at middle income segment of the mkt.As a brand,Nirma has maintained its middle class focus and "value for money" proposition.
e)Generation:Each generation is profoundly influenced by the times in which it grows up-the music,movies,politics and defining events of that period.Demographers call these generational groups as cohorts.The younger generations play significant roles,not only as consumers,but also as initiators and infuencors of buying decisions.A study by Walt Disney Company and Group M company reveals that about 63% of children are invloved in purchase decisions of wide range of products ranging from computers,bicylces,TV sets,automobiles.
f)Social Class:-It has a strong influence on preference in cars,clothing,leisure activities etc and also the retailers and many companies design products and services for specific social classes. The concept of social class in India is influenced by caste system-a very unique system peculiar to India.This complexity of Indian mkt has prompted the development of "SEC" as a viable method to segment mkts.
3)Psychographic:-Its the science of using psychology and demographics to better understand the consumers.Here the buyers are divided into diff groups on the basis of psychological.personality traits,lifestyle or values.Eg: Mcdonalds changed their menu in India to adapt to consumr preferences. Beef is avoided in the menu and instead,veg burger was introduced based on preference for vegetarian food.
4) Behavioral:Here,marketers divide buyers into groups on basis of their knowledge of attitude towards use of, or response to a product or service.
a)Decision roles:People play 5 roles in a buying decision:Initiator,Influencer,Decider,Buyer, and user.
Women play significant influencing and deciding role for kitchen appliances.
b)Behavioral variables:
-Occasions:Greeting cards from Archis and Hallmark,Amul chocalates as "a gift for someone you love".Monaco biscuits come with suggestions for toppings so that biscuits can be served as snacks at parties etc.
-Benefits:Shampoos offer basic cleaning of hair,conditioning effects.Brands such as Clinic,Chik,Pantene offer diff variants addressed to diverse benefit segments.
-User Status:Every product has its non-users,ex-users,potential users,first time users and regular users.eg:Blood bank cannot rely on regular donors to supply blood hence they should recruit new first time donors and contact ex-donors each with a different mktg strategy.
-Usage rate-Mkts can be segmented into light,medium and heavy product users.Eg: Cellphone service providers in South Asia offer low tariffs targeted at entry-level users of cell phone service to attract them to product or service.
-Loyalty status: 4 groups based on brand loyalty status-
a)Hard core loyals b)Split loyals c)Shifting loyals d)Switchers.
Loyalty programs tend to reduce customers propensity to switch brands.
Eg: In industries like retailing,hospitality,airlines companies offer loyalty programs like awards etc.
5)Usage Based:-eg:Sachetization of products.
Transition from Segmentation to Targetting:
Is the mkt sustainable?
Is the mkt measurable?
Nirma in its early days was a single product and employed mass mktg strategy.
But now mass mktg approach seems to be declined eg:Welding rods instance told by sir.
Bajaj Scooters believed that "Mkt for two wheelers is not sustainable" but later Hero Honda proved them wrong by introducing Hero Honda Splendor.
Newcomers in 2 wheeler production: TVS,Kawasaki,Mahindra.
On the same lines: Is the B school sustainable in India?
Is the 2 year program of MBA sustainable?
For more reading on Sustainability read: Marketing model by Lillian & Kotler.
