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

i t s good and
good for you
Chapter Seven
Customer-Driven
Marketing Strategy:
Creating Value for Target
Customers
Copyright 2012Pearson Education
7- 1
Customer-Driven Marketing Strategy:

Creating Value for Target Customers
Topic Outline
Customer-Driven Marketing
Strategy
Market Segmentation
Market Targeting
Differentiation and Positioning
7- 2
Market Segmentation
Market segmentation
Dividing a market into smaller
segments
with distinct needs, characteristics,
or
behavior that might require separate
marketing strategies or mixes.
7- 3
Market Segmentation
7- 4
Market Segmentation
Segmenting consumer markets

Segmenting business markets
Segmenting international markets
Requirements for effective
segmentation
7- 5
Market Segmentation
Segmenting Consumer Markets
Geographic segmentation
7- 6
Market Segmentation
Geographic segmentation
divides the market into different
geographical units such as nations,
regions, states, counties, or cities
7- 7
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
7- 8
Market Segmentation
Age and life-cycle 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)
7- 9
Market Segmentation
Income segmentation
divides the market into
affluent, middle-income
or low-income
consumers
Psychographic
segmentation divides
buyers into different
groups based on social
class, lifestyle, or
personality traits
7- 10
Market Segmentation
Behavioral
segmentation
divides buyers into
groups based on their
knowledge, attitudes,
uses, or responses to a
product
Occasions
Benefits sought
User status
Usage
Copyright 2012Pearson
Education rate
7- 11
Market Segmentation
Using Multiple Segmentation
Bases
Multiple segmentation is used to
identify smaller, better-defined target
groups
7- 12
Market Segmentation
Using Multiple Segmentation
Bases
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 buying
behavior based on a host of
demographic factors
7- 13
Market Segmentation
Geographic
Economic
Political-legal
Cultural
factors
factors
location
factors
Segmenting
International markets
7- 14
Market Segmentation
Segmenting International Markets
Intermarket segmentation
divides consumers into groups with
similar needs and buying
behaviors even though they are
located in different countries
7- 15
Market Segmentation
Requirements for Effective Segmentation
To be useful, market segments must

Actionable
Differentiable
Substantial
Accessible
Measurable
be:
7- 16
Market Targeting
Selecting Target Market Segments
Target market consists of a set of

buyers who share common needs
or characteristics that the
company decides to serve
7- 17
Market Targeting
Evaluating Market Segments
Segment size and growth

.
Segment structural attractiveness
Company objectives and resources
7- 18
Market Targeting
Target Marketing Strategies
Undifferentiated marketing targets

the whole market with one offer
Mass marketing
Focuses on common needs rather
than whats different
7- 19
Market Targeting
Target Marketing Strategies
Differentiated marketing targets

several different market segments
and designs separate offers for
each
Goal is to achieve higher sales and
stronger position
More expensive than
undifferentiated marketing
7- 20
Market Targeting
Target Market Strategies
Concentrated
marketing targets a
small share of a large
market
Limited company
resources
Knowledge of the
market
More effective and
efficient
7- 21
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
7- 22
Market Targeting
Local marketing involves tailoring

brands and promotion to the needs
and wants of local customer
groups
Cities
Neighborhoods
Stores
7- 23
Market Targeting
Individual marketing
involves tailoring products
and marketing programs
to the needs and
preferences of individual
customers
Also known as:
One-to-one marketing
Mass customization
Markets-of-one marketing
7- 24
Market Targeting
Choosing a Target Market
Depends on:
Company resources
Product variability
Product life-cycle stage
Market variability
Competitors marketing strategies
7- 25
Market Targeting
Socially Responsible Target
Marketing
Benefits customers
with specific needs
Concern for
vulnerable segments
Children
Alcohol
Cigarettes
Internet abuses
7- 26

Product position is
the way the product
is defined by
consumers on
important attributes
the place the
product occupies in
consumers minds
relative to
competing products
Perceptions
Impressions
Copyright
Education
2012Pearson
Feelings
7- 27

Positioning
maps show
consumer
perceptions of
their brands
versus
competing
products on
important
buying
dimensions
7- 28

Choosing a Differentiation and
Positioning Strategy
Identifying a set of possible

competitive advantages to build a
position
Choosing the right competitive
advantages
Selecting an overall positioning
strategy
Communicating
and delivering
the
Copyright
2012Pearson Education
7- 29

Identifying Possible Value
Differences and Competitive
Advantages
Competitive advantage is an
advantage over competitors
gained by offering consumers
greater value, either through lower
prices or by providing more
benefits that justify higher prices
7- 30

Choosing a Differentiation and
Positioning Strategy
Identifying a set of possible

competitive advantages to
build a position by
providing superior value
from:Product differentiation
7- 31

Choosing the Right Competitive
Advantage
Difference to promote should be:

Profitable
Affordable
Preemptive
Communicable
Superior
Distinctive
Important
7- 32

Selecting an Overall Positioning
Strategy
Value
proposition
is the full mix
of benefits
upon which a
brand is
positioned
7- 33

Developing a Positioning
Statement
To (target segment and need) our

(brand) is (concept) that (point of
difference)
7- 34
Communication and Delivering the

Chosen Position
Choosing the positioning is often
easier than
implementing the
position.
7- 35
All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2012 Pearson Education

7- 36

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

Uploaded by

Copyright:

Available Formats

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

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

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

Uploaded by

Copyright:

Available Formats

i t s good and

good for you

Copyright 2012Pearson Education

Customer-Driven Marketing Strategy:

Copyright 2012Pearson Education

Copyright 2012Pearson Education

Segmenting consumer markets

Copyright 2012Pearson Education

Copyright 2012Pearson Education

Copyright 2012Pearson Education

Copyright 2012Pearson Education

PRIZM NE classifies every

Copyright 2012Pearson Education

Copyright 2012Pearson Education

To be useful, market segments must

Copyright 2012Pearson Education

Target market consists of a set of

Copyright 2012Pearson Education

Segment size and growth

Copyright 2012Pearson Education

Undifferentiated marketing targets

Copyright 2012Pearson Education

Differentiated marketing targets

Micromarketing is the practice of

Copyright 2012Pearson Education

Local marketing involves tailoring

Copyright 2012Pearson Education

Differentiation and Positioning

Differentiation and Positioning

Differentiation and Positioning

Identifying a set of possible

Differentiation and Positioning

Differentiation and Positioning

Identifying a set of possible

Copyright 2012Pearson Education

Differentiation and Positioning

Difference to promote should be:

Copyright 2012Pearson Education

Differentiation and Positioning

Differentiation and Positioning

To (target segment and need) our

Copyright 2012Pearson Education

Communication and Delivering the

Copyright 2012Pearson Education

All rights reserved. No part of this publication may be reproduced, stored in a

Copyright 2012 Pearson Education

You might also like