Scribd Logo
Upload

Welcome to Scribd!

  • 73 views

    Customer Value-Driven Marketing Strategy: Creating Value For Target Customers

    Uploaded by

    Shadman Sakib Fahim
    1) The document outlines the four major steps of a customer value-driven marketing strategy: market segmentation, market targeting, differentiation, and positioning. 2) It discusses how to segment markets using geographic, demographic, psychographic, and behavioral variables. Effective segmentation requires segments be measurable, accessible, substantial, differentiable, and actionable. 3) Market targeting involves evaluating segment attractiveness and selecting segments to target based on size, growth, structure, and fit with company objectives. Broad, differentiated, niche, and micromarketing strategies are discussed. 4) Differentiation and positioning involve identifying competitive advantages to create superior customer value and occupying a clear position in the minds of customers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Customer Value-Driven Marketing Strategy: Creating Value For Target Customers

    Uploaded by

    Shadman Sakib Fahim
    73 views25 pages
    1) The document outlines the four major steps of a customer value-driven marketing strategy: market segmentation, market targeting, differentiation, and positioning. 2) It discusses how to segment markets using geographic, demographic, psychographic, and behavioral variables. Effective segmentation requires segments be measurable, accessible, substantial, differentiable, and actionable. 3) Market targeting involves evaluating segment attractiveness and selecting segments to target based on size, growth, structure, and fit with company objectives. Broad, differentiated, niche, and micromarketing strategies are discussed. 4) Differentiation and positioning involve identifying competitive advantages to create superior customer value and occupying a clear position in the minds of customers.

    Original Title

    Chapter_7

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) The document outlines the four major steps of a customer value-driven marketing strategy: market segmentation, market targeting, differentiation, and positioning. 2) It discusses how to segment markets using geographic, demographic, psychographic, and behavioral variables. Effective segmentation requires segments be measurable, accessible, substantial, differentiable, and actionable. 3) Market targeting involves evaluating segment attractiveness and selecting segments to target based on size, growth, structure, and fit with company objectives. Broad, differentiated, niche, and micromarketing strategies are discussed. 4) Differentiation and positioning involve identifying competitive advantages to create superior customer value and occupying a clear position in the minds of customers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    73 views25 pages

    Customer Value-Driven Marketing Strategy: Creating Value For Target Customers

    Uploaded by

    Shadman Sakib Fahim
    1) The document outlines the four major steps of a customer value-driven marketing strategy: market segmentation, market targeting, differentiation, and positioning. 2) It discusses how to segment markets using geographic, demographic, psychographic, and behavioral variables. Effective segmentation requires segments be measurable, accessible, substantial, differentiable, and actionable. 3) Market targeting involves evaluating segment attractiveness and selecting segments to target based on size, growth, structure, and fit with company objectives. Broad, differentiated, niche, and micromarketing strategies are discussed. 4) Differentiation and positioning involve identifying competitive advantages to create superior customer value and occupying a clear position in the minds of customers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 25

    Chapter 7

    Customer Value-Driven Marketing Strategy:


    Creating Value for Target Customers

    Principles of Marketing
    Philip Kotler, Gary Armstrong
    Analyzing the Marketing Environment
    Topic Outline

    • Customer-Driven Marketing Strategy


    • Market Segmentation
    • Market Targeting
    • Differentiation
    • Positioning

    Customer Value-Driven Marketing Strategy 2


    Four Major Steps of Customer Value-Driven
    Marketing Strategy

    1 3

    2 4

    Customer Value-Driven Marketing Strategy 3


    Market Segmentation
    Dividing the entire market into distinct group of buyers
    who have different needs, characteristics, or behaviors
    and who might require separate marketing strategies or
    mixes.
    Gone are the days of mass marketing!

    Customer Value-Driven Marketing Strategy 4


    Variables Used in Segmenting Consumer
    Markets

    à Geographic
    à Demographic
    à Psychographic
    à Behavioral

    Customer Value-Driven Marketing Strategy 5


    Geographic Segmentation

    à Variables for geographic segmentation:


    à Geographic units: nations, regions, states,
    counties, cities or even neighborhoods
    à Density
    à Climate

    Customer Value-Driven Marketing Strategy 6


    Demographic Segmentation

    à Variables: age, life-cycle, gender, income, occupation,


    education, religion, ethnicity and generation

    à Most popular bases for segmentation because:


    1. Customer needs, wants, and usage rates often
    vary closely with demographic variables
    2. Easier to measure

    Customer Value-Driven Marketing Strategy 7


    Psychographic Segmentation

    à Remember chapter 5???

    à Dividing into segments based of lifestyle or


    personality characteristics

    Customer Value-Driven Marketing Strategy 8


    Requirements for Effective
    Segmentation
    à Measurable: size, purchasing power, and profiles of the
    segments can be measured.
    à Accessible: segments can be effectively reached and
    served.
    à Substantial: segments large or profitable enough to
    serve.

    Customer Value-Driven Marketing Strategy 9


    Requirements for Effective
    Segmentation
    à Differentiable: segments are conceptually distinguishable
    and respond differently to different marketing mix elements
    and programs.
    à Actionable: effective marketing programs can be
    designed for attracting and serving the segments.

    Customer Value-Driven Marketing Strategy 10


    Market Targeting

    à Evaluating each market segment’s attractiveness


    and selecting one or more segments to serve

    Customer Value-Driven Marketing Strategy 11


    Market Targeting

    à Evaluating Market Segments: firm must look at the three


    factors -

    Size and Structural


    Growth Attractiveness

    Company
    Objectives and
    Resources

    Customer Value-Driven Marketing Strategy 12


    Market Targeting

    à Evaluating Market Segments:

    § Segment size and growth: right size and growth.

    § Segment structural attractiveness: strong


    competitors, substitute products, power of
    buyers, powerful suppliers

    § Company objectives and resources: make sense


    for long run objectives and have required
    resources.
    Customer Value-Driven Marketing Strategy 13
    Market Targeting

    à Selecting Target Market Segments:


    à Target Market - a set of buyers who share common needs
    or characteristics that a company decides to serve
    à For selection company needs to apply Market Targeting
    Strategies

    Customer Value-Driven Marketing Strategy 14


    Market Targeting
    à Selecting Target Market Segments:
    à Market Targeting Strategies:
    § Target broadly (undifferentiated / mass marketing):
    ignore market segments, go after the whole market
    with one offer.
    § Coca-cola, keep low cost

    § Differentiated marketing: target several market


    segments and designs separate offers for each.
    § GM (cars for every “purse, purpose, personality”),
    Increase cost

    Customer Value-Driven Marketing Strategy 15


    Market Targeting
    à Market Targeting Strategies (Contd.):
    § Concentrated (niche) marketing: large share of one or a
    few segments or niches, ignored by larger competitors.
    limited resources, gain operating economies through
    specialization.
    § Zappos – only shoes and only online

    Customer Value-Driven Marketing Strategy 16


    Market Targeting
    à Market Targeting Strategies (Contd.):
    § Micromarketing: tailor products and marketing
    programs to the needs and wants of specific individuals
    and local customer groups.
    § Local Marketing: local customer groups – cities,
    neighborhoods, Retailers.
    § Customize each store’s merchandise and
    promotions.
    § Individual Marketing: individual customers.
    § Dell computer.

    Customer Value-Driven Marketing Strategy 17


    Choosing a Market Targeting Strategy
    à Many factors need to be considered before choosing any
    of the strategies mentioned till now:

    Competitors’ Company
    Strategies Resources
    Factors
    Affecting
    Market Strategy Product
    Variability Decisions Variability

    Stage in
    Life Cycle
    Customer Value-Driven Marketing Strategy 18
    Differentiation
    à Differentiating the market offering to create
    superior customer value

    Make a distinction/set
    apart

    Customer Value-Driven Marketing Strategy 19


    Positioning
    à Arranging for a market offering to occupy a clear,
    distinctive, and desirable place relative to (you can
    say “in comparison with”) competing products in the
    minds of the target consumers.

    Customer Value-Driven Marketing Strategy 20


    Steps of Differentiation and Positioning Task
    1. Identifying Possible Value Differences and Competitive
    Advantages
    2. Choosing the Right Competitive Advantages
    3. Selecting an Overall Positioning Strategy

    Customer Value-Driven Marketing Strategy 21


    Identifying Possible Value Differences and
    Competitive Advantages

    à Competitive Advantage: An advantage over competitors


    gained by offering greater customer value either by having
    lower prices or by providing more benefits that justify higher
    prices.

    Customer Value-Driven Marketing Strategy 22


    Choosing the Right Competitive Advantage

    § How many differences to promote

    § Which differences to promote: important, distinctive,


    superior, communicable, preemptive, affordable,
    profitable

    Customer Value-Driven Marketing Strategy 23


    Selecting an Overall Positioning Strategy

    à Value Proposition: Full positioning of a brand -


    full mix of benefits on which it is positioned

    Customer Value-Driven Marketing Strategy 24


    Selecting an Overall Positioning Strategy

    Customer Value-Driven Marketing Strategy 25

    You might also like