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1、Chapter Seven,Customer-Driven Marketing Strategy Creating Value for Target Customers,Customer-Driven Marketing Strategy:Creating Value for Target Customers,Customer-Driven Marketing Strategy Market Segmentation Market Targeting Differentiation and Positioning,Topic Outline,a,Customer-Driven Marketin
2、g Strategy:Creating Value for Target Customers,Looks further into key customer-driven marketing strategy decisions How to divide up markets into meaningful customer groups (segmentation), Choose which customer groups to serve (targeting), Create market offerings that best serve targeted customers (d
3、ifferentiation), and Positioning the offerings in the minds of consumers (positioning,Market segmentation is the process that companies use to divide large, heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their uniqu
4、e needs,Market Segmentation,Most companies have moved away from mass marketing and toward target marketing Identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each,Segmenting consumer markets Segmenting business markets Segmenting in
5、ternational markets Requirements for effective segmentation,Market Segmentation,Market Segmentation,Segmenting Consumer Markets,Market Segmentation,Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities,Segmenting Consumer M
6、arkets,Market Segmentation,Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality,Segmenting Consumer Markets,STOP,Market Segmentation,Age and life-cycl
7、e stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups Gender segmentation divides the market based on sex (male or female) Income segmentation divides the market into affluent or low-income consumers,Demogra
8、phic Segmentation,Market Segmentation,Psychographic segmentation divides buyers into different groups based on: Social class: lower, middle, upper class, etc Lifestyle: achiever, strivers, survivors, etc Personality traits: compulsive, gregarious, authoritarian, ambitious,Segmenting Consumer Markets
9、,Market Segmentation,Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasions: regular occasions, special occasions, etc Benefits sought: Quality, service, economy, etc User status: Non-user, ex-user, potential user, first time
10、 user, regular user Usage rate: Light, medium, heavy user Loyalty status: None, medium, strong, absolute Readiness stage: Unaware, aware, informed, interested, desirous, intending to buy Attitude toward product: Enthusiastic, positive, indifferent, negative, hostile,Segmenting Consumer Markets,Marke
11、t Segmentation,Multiple segmentation is used to identify smaller, better-defined target groups Geodemographic segmentation is an example of multivariable segmentation that divides groups into consumer lifestyle patterns,Using Multiple Segmentation Bases,Marketers rarely limit their segmentation anal
12、ysis to only one or a few variables,Market Segmentation,PRIZM NE classifies every American household into 66 unique segments organized into 14 different social groups These groups segment people and locations into marketable groups of like-minded consumers that exhibit unique characteristics and buy
13、ing behavior based on a host of demographic factors,Using Multiple Segmentation Bases,PRIZM NE (one of the leading segmentation systems) classifies every American household based on a host of demographic factors,Market Segmentation,Segmenting International markets,a,International Market Segmentation
14、,Geographic factors: Nations close to one another will have many common traits and behaviors. Economic factors: Countries may be grouped by population income levels or by their overall level of economic development. Political and legal factors: Type and stability of government, receptivity to foreig
15、n firms, monetary regulations, and the amount of bureaucracy. Cultural factors: Grouping markets according to common languages, religions, values and attitudes, customs, and behavioral patterns,Market Segmentation,Intermarket segmentation divides consumers into groups with similar needs and buying b
16、ehaviors even though they are located in different countries,Segmenting Business Markets,Market Segmentation,To be useful, market segments must be,Requirements for Effective Segmentation,a,Requirements for Effective Segmentation,Measurable: The size, purchasing power, and profiles of the segments ca
17、n be measured. Accessible: The market segments can be effectively reached and served. Substantial: The market segments are large or profitable enough to serve. Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Acti
18、onable: Effective programs can be designed for attracting and serving the segments,Market Targeting,Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve,Selecting Target Market Segments,Market Targeting,Segment size and growth Segment
19、structural attractiveness Company objectives and resources,Evaluating Market Segments,a,Evaluating Market Segments,The largest, fastest-growing segments are not always the most attractive ones for every company. The company also needs to examine major structural factors that affect long-run segment
20、attractiveness,A segment is less attractive if it already contains many strong and aggressive competitors. The existence of many actual or potential substitute products may limit prices and the profits. The relative power of buyers also affects segment attractiveness,A segment may be less attractive
21、 if it contains powerful suppliers who can control prices,Market Targeting,Undifferentiated marketing targets the whole market with one offer Mass marketing Focuses on common needs rather than whats different,Target Marketing Strategies,Market Targeting,Differentiated marketing targets several diffe
22、rent market segments and designs separate offers for each Goal is to achieve higher sales and stronger position More expensive than undifferentiated marketing,Target Marketing Strategies,Market Targeting,Concentrated marketing (niche marketing) targets a small share of a large market Limited company
23、 resources Knowledge of the market More effective and efficient,Target Market Strategies,Marketing Targeting,Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations Local marketing Individual marketing,Target Market Strateg
24、ies,Market Targeting,Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups Cities Neighborhoods Stores,Target Market Strategies,Market Targeting,Individual marketing involves tailoring products and marketing programs to the needs and preferences of i
25、ndividual customers Also known as: One-to-one marketing Mass customization Markets-of-one marketing,Target Market Strategies,Market Targeting,Depends on: Company resources Product variability Product life-cycle stage Market variability Competitors marketing strategies,Choosing a Targeting Strategy,M
26、arket Targeting,Benefits customers with specific needs Concern for vulnerable segments Children Alcohol Cigarettes Internet abuses,Socially Responsible Target Marketing,Socially responsible marketing calls for segmentation and targeting that serve not just the interests of the company, but also the
27、interests of those targeted,Product position is the way the product is defined by consumers on important attributesthe place the product occupies in consumers minds relative to competing products Perceptions Impressions Feelings,Differentiation and Positioning,Positioning maps show consumer percepti
28、ons of their brands versus competing products on important buying dimensions,Differentiation and Positioning,Differentiation and Positioning,Identifying a set of possible competitive advantages to build a position Choosing the right competitive advantages Selecting an overall positioning strategy De
29、veloping a positioning statement,Choosing a Differentiation and Positioning Strategy,The differentiation and positioning task consists of four steps,Differentiation and Positioning,Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower
30、 prices or by providing more benefits that justify higher prices,Identifying Possible Value Differences and Competitive Advantages,Differentiation and Positioning,Identifying a set of possible competitive advantages to build a position by providing superior value from,Choosing a Differentiation and
31、Positioning Strategy,Differentiation and Positioning,Difference to promote should be,Choosing the Right Competitive Advantage,a,Choosing the Right Competitive Advantage,Important: The difference delivers a highly valued benefit to target buyers. Distinctive: Competitors do not offer the difference,
32、or the company can offer it in a more distinctive way. Superior: The difference is superior to other ways that customers might obtain the same benefit. Communicable: The difference is communicable and visible to buyers. Preemptive: Competitors cannot easily copy the difference. Affordable: Buyers ca
33、n afford to pay for the difference. Profitable: The company can introduce the difference profitably,Differentiation and Positioning,Value proposition is the full mix of benefits upon which a brand is positioned,Selecting an Overall Positioning Strategy,a,Selecting an Overall Positioning Strategy,Mor
34、e for More positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs. More for the Same positioning involves introducing a brand offering comparable quality but at a lower price. The Same for Less positioning can be a powerful value propositioneveryone likes a good deal,a,Selecting an Overall Positioning Strategy,More for Less positioning is the winning value proposition. In the long run, companies will find it very difficult to sustain such best-of-both positioning,Less for Much Less pos
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