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Marketing:AnIntroductionFifteenthEditionChapter06CustomerValue-DrivenMarketingStrategy:CreatingValueforTargetCustomersCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)6.1Definethemajorstepsindesigningacustomervalue-drivenmarketingstrategy:marketsegmentation,targeting,differentiation,andpositioning.6.2
Listanddiscussthemajorbasesforsegmentingconsumerandbusinessmarkets.ObjectivesOutline(2of2)6.3
Explainhowcompaniesidentifyattractivemarketsegmentsandchooseamarket-targetingstrategy.6.4
Discusshowcompaniesdifferentiateandpositiontheirproductsformaximumcompetitiveadvantage.FirstStop:P&G:CompetingwithItself—andWinningByofferingbrandsandsub-brandsthattargetspecificsegmentsofdetergentpreferences,hereTideFree&Gentle,Tideoffersauniquevaluepropositiontoeachdistinctcustomersegment.ObjectiveOutline6.1Definethemajorstepsindesigningacustomervalue-drivenmarketingstrategy:marketsegmentation,targeting,differentiation,andpositioning.Figure6.1DesigningaCustomerValue-DrivenMarketStrategyObjectiveOutline6.1SummaryCustomervalue-drivenmarketingstrategyIdentifyingwhichcustomerstoserveDeterminingavaluepropositionMarketsegmentationandmarkettargetingDifferentiatingthemarketofferingPositioninginthemindsoftargetcustomersRightrelationshipswiththerightcustomersObjectiveOutline6.2Listanddiscussthemajorbasesforsegmentingconsumerandbusinessmarkets.Table6.1MajorSegmentationVariablesforConsumerMarketsSegmentationVariableExamplesGeographicNations,regions,states,counties,cities,neighborhoods,populationdensity(urban,suburban,rural),climateDemographicAge,life-cyclestage,gender,income,occupation,education,religion,ethnicity,generationPsychographic
Socialclass,lifestyle,personalityBehavioralOccasions,benefits,userstatus,usagerate,loyaltystatus
GeographicandDemographicSegmentationGeographicsegmentation:DividingamarketintodifferentgeographicalunitsSuchasnations,states,regions,counties,cities,orneighborhoodsDemographicsegmentation:DividingamarketintosegmentsbasedonvariablesSuchasage,life-cyclestage,gender,income,occupation,education,religion,ethnicity,andgenerationDemographicSegmentationAgeandlife-cyclesegmentationDividingamarketintodifferentageandlife-cyclegroupsGendersegmentationDividingamarketintodifferentsegmentsbasedongenderIncomesegmentationDividingamarketintodifferentincomesegmentsPsychographicSegmentation(1of2)MarketerssegmenttheirmarketsusingvariablessuchasSocialclassLifestylePersonalitycharacteristicsTheproductspeoplebuyreflecttheirlifestyles.PsychographicSegmentation(2of2)Lifestylesegmentation:Paneracaterstoahealthy-eatinglifestylesegmentofpeoplewhowantmorethanjustgood-tastingfood—theywantfoodthat’sgoodforthem,too.BehavioralSegmentation(1of3)Occasionsegmentation:Segmentsdividedaccordingtooccasions,whenthebuyersGettheideatobuyMaketheirpurchaseUsethepurchaseditemBenefitsegmentation:Segmentsdividedaccordingtothedifferentbenefitsthatconsumersseekfromtheproduct.BehavioralSegmentation(2of3)Benefitsegmentation:Schwinnmakesbikesforeverybenefitsegment.Forexample,itse-bikes“helpmakethemorningcommuteorridearoundtownalittlebiteasier.”BehavioralSegmentation(3of3)Userstatus:Marketscanbesegmentedintononusers,ex-users,potentialusers,first-timeusers,andregularusers.Usagerate:Marketscanbesegmentedintolight,medium,andheavyproductusers.Loyaltystatus:Consumerscanbeloyaltobrands,stores,andcompanies.MultipleSegmentationBasesSegmentationbaseshelpcompaniestoIdentifysmaller,better-definedtargetgroupsIdentifyandunderstandkeycustomersegmentsReachcustomersmoreefficientlybytailoringmarketofferingsandmessagestocustomers’specificneedsSegmentationsystemshelpmarketerssegmentpeopleandlocationsintomarketablegroupsoflike-mindedconsumers.SegmentingBusinessMarketsConsumerandbusinessmarketsusemanyofthesamevariablesforsegmentation.VariablesusedbybusinessmarketersforsegmentationincludeOperatingcharacteristicsPurchasingapproachesSituationalfactorsPersonalcharacteristicsSegmentingInternationalMarketsVariablesincludeGeographiclocationEconomicfactorsPoliticalandlegalfactorsCulturalfactorsIntermarket(cross-market)segmentation:Groupingconsumerswithsimilarneedsandbuyingbehaviorsirrespectiveoftheirlocation.RequirementsforEffectiveSegmentationMeasurableAccessibleSubstantialDifferentiableActionableObjectiveOutline6.2SummaryConsumermarketsegmentationGeographic,demographic,psychographic,andbehavioralBusinessmarketsegmentationDemographics,operatingcharacteristics,purchasingapproaches,situationalfactors,andpersonalcharacteristicsRequirementsforeffectivesegmentationMeasurable,accessible,substantial,differentiable,andactionableObjectiveOutline6.3Explainhowcompaniesidentifyattractivemarketsegmentsandchooseamarket-targetingstrategy.MarketTargeting(1of2)EvaluatingthevarioussegmentsbasedonSegmentsizeandgrowthSegmentstructuralattractivenessCompanyobjectivesandresourcesSelectingtargetmarketsegmentsTargetmarket:SetofbuyerssharingcommonneedsorcharacteristicsthatthecompanydecidestoserveFigure6.2Market-TargetingStrategiesMarketTargeting(2of2)Differentiatedmarketing:Withmorethan30differentiatedhotelbrands,MarriottInternationaldominatesthehotelindustry,capturingamuchlargershareofthetravelandhospitalitymarketthanitcouldwithanysinglebrandalone.ChoosingaTargetingStrategyFactorstoconsiderCompanyresourcesProductvariabilityProduct’slife-cyclestageMarketvariabilityCompetitors’marketingstrategiesSociallyResponsibleTargetMarketingControversyandconcernoftargetmarketingVulnerableordisadvantagedconsumersaretargetedwithcontroversialorpotentiallyharmfulproducts.Sociallyresponsibletargetmarketingshouldbedonetoserveboththeinterestsofthecompanyandtheinterestsofthosetargeted.ObjectiveOutline6.3SummaryFourmarket-targetingstrategiesUndifferentiated(ormass),differentiated,concentrated(orniche),andmicromarketingMicromarketingincludeslocalandindividualmarketing.ObjectiveOutline6.4Discusshowcompaniesdifferentiateandpositiontheirproductsformaximumcompetitiveadvantage.DifferentiationandPositioningFirmsmustdecidewhichsegmentstotargetandonthevalueproposition.Productpositionisthewayaproductisdefinedbyconsumersonimportantattributes.ConcentratedMarketingConcentratedmarketing:ApparelcompanyAmericanGianthasgrownexplosivelyinitsback-to-basics,made-in-Americaniche.Figure6.3PositioningMap:LargeLuxurySUVsChoosingaDifferentiationandPositioningStrategyIdentifyingPossibleValueDifferencesandCompetitiveAdvantagesCompetitiveadvantage:AnadvantageovercompetitorsgainedbyofferinggreatercustomervalueeitherbyHavinglowerprices,orProvidingmorebenefitsthatjustifyhigherpricesFirmscandifferentiateintermsofproduct,services,channels,people,orimage.ChoosingtheRightCompetitiveAdvantagesNumberofdifferencestopromoteDevelopingauniquesellingproposition(USP)foreachbrandandstickingtoitPositioningonmorethanonedifferentiatorWhichDifferencestoPromoteImportantDistinctiveSuperiorCommunicablePreemptiveAffordableProfitableFigure6.4PossibleValuePropositionsWinningValuePropositionsValuepropositionDescriptionMoreformoreProvidesthemostupscaleproductorserviceMoreforthesameHighqualityatlowerpricesMoreforlessBestwinningpropositionThesameforlessGivesagooddealLessformuchlessMeetingconsumers’lowerperformanceorqualityrequirementsatalowerpriceDevelopingaPositioningStatementPositioningstatement:SummarizescompanyorbrandpositioningPositioningstatement:PublicGoodsispositionedasanonlinefoodandhouseholdgoodsretailerthatmakeshealthy,sustainable,everydayessentialsaccessibleatafairprice.PublicGoodsPositioningStatementOnlineretailerPublicGoods:“Forvalue-,health-,andconvenience-seekingbuyers,PublicGoodsisanonlinefoodandhouseholdgoodsretailerthatmakeshealthy,sustainable,everydayessentialsaccessibleatafairprice.”CommunicatingandDeliveringtheChosenPositionAllthecompany’smarketingmixeffortsmustsupportthepositioningstrategy.Maintainthepositionobtainedthroughconsistentperformanceandcommunication.Theproduct’spositionshouldbemonitoredandadaptedovertime.Objecti
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