bm3108_lecture 5.ppt

8/13/2019 BM3108_Lecture 5.ppt

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BM3108

INTRODUCTION TO MARKETING

Lecture Five

Customer Driven Marketing Strategy

Creating Value for Target Customers


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OverviewOverview

Define the meaning of market segmentation,

targeting, differentiation and positioning

Discuss the major ases for segmentation

!"plain ho# companies identify attractive marketsegments and choose a market$targeting

strategy

Discuss ho# companies differentiate andposition their products for competitive advantage


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MARKET SEGMENTATIONMARKET SEGMENTATION

Ge&"r%,ic+

-orld region or country

.egion of country

City or metro si/e Density

Climate


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De#&"r%,ic

0ge, gender, family si/e, family life cycle, income,

occupation, education, race, religion, generation and

nationality The most popular ases for segmenting customer

groups

!asier to measure than most other types of variales


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.*'c&"r%,ic Se"#e$t%ti&$

Dividing a market into different groups ased on

social class, lifestyle or personality characteristics

Be%vi&r%) Se"#e$t%ti&$

Dividing uyers into groups ased on consumer

kno#ledge, attitudes, uses or responses to a product


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SEGMENTING BUSINESSSEGMENTING BUSINESS

MARKETSMARKETS

Customers and usiness markets use many of

the same variales for segmentation

)usiness marketers can also use%

perating characteristics 1should #e serve heavyusers, medium, light or non user23

&urchasing approaches 1serve those companies

seeking 'uality2 Service2 r price23

Situational factors 1should #e serve company thatneed 'uick and sudden delivery or service23

&ersonal characteristics 1should #e serve risk taking

or risk avoiding customers23


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SEGMENTING BUSINESSSEGMENTING BUSINESS

MARKETSMARKETS

4actors used in international market

segmentation%

(eographic location

!conomic factors &olitical and legal factors

Cultural factors

5ntermarket Segmentation

4orming segments of consumers #ho have similar

needs and uying ehavior even though they are

located in different countries


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RE/UIREMENT FOR EFFECTIERE/UIREMENT FOR EFFECTIE

SEGMENTATIONSEGMENTATION


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EALUATING MARKETEALUATING MARKET

SEGMENTSSEGMENTS

Se"#e$t *ie %$ "r&wt

0naly/e current segment sales, gro#th rates and

e"pected profitaility

Se"#e$t *tructur%) %ttr%ctive$e** Consider competition, e"istence of sustitute products

and po#er of uyers and suppliers

C,%$' &(2ective* %$ re*&urce*

!"amine company skills and resources needed to

succeed in that segment


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MARKET TARGETINGMARKET TARGETING

Market targeting involves%

Ev%)u%ti$" #%ret *e"#e$t*

Segment si/e, segment structural attractiveness,

company6s ojectives and resources are considered Se)ecti$" t%r"et #%ret *e"#e$t*

0lternatives range from undifferentiated marketing to

micromarketing

Bei$" *&ci%))' re*,&$*i()e (enerates controversy and concern


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SELECTING TARGET MARKETSELECTING TARGET MARKET

SEGMENTSSEGMENTS


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SEGMENTSSEGMENTS

M%** M%reti$"

0 firm might decide to ignore market segment

differences and target the #hole market #ith one offer

Di44ere$ti%te M%reti$"

0 market$coverage strategy in #hich a firm decides to

target several market segments and designs separate

offers for each


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SEGMENTSSEGMENTS

C&$ce$tr%te M%reti$"

0 market$coverage strategy in #hich a firm goes after

a large share of one or a fe# segments or niches

Micr%reti$"

The practice of tailoring products and marketing

programs to the needs and #ants of specific

individuals and local customer segments includes)&c%) #%reti$" and i$iviu%) #%reti$"


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SEGMENTSSEGMENTS

Micr%reti$"

L&c%) M%reti$"

Tailoring rands and promotions to the needs and

#ants of local customer groups $ cities, neighorhoods,specific stores 1(roupon3

I$iviu%) M%reti$"

Tailoring products and marketing programs to the

needs and preferences of individual customers

17aptop Demonstration D!77, Smart Car3


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C5OOSING A TARGETINGC5OOSING A TARGETING

STRATEG!STRATEG!

4actors to consider%

%6 C,%$' Re*&urce*

(6 .r&uct %ri%(i)it'

c6 .r&uct7* Li4e-C'c)e St%"e6 M%ret %ri%(i)it'

e6 C,etit&r*7 M%reti$" Str%te"'


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SOCIALL! RES.ONSIBLESOCIALL! RES.ONSIBLE

TARGETINGTARGETING

Smart targeting helps oth companies and

consumers

Marketing sometimes generates controversy and

concern #hen targeting Vulnerale, minority or disadvantaged

Children and teens

Controversy arises #hen an attempt is made to

profit at the e"pense of segments


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DIFFERENTIATION ANDDIFFERENTIATION AND

.OSITIONING.OSITIONING

0 product6s position is%

The #ay the product is defined y consumers on

important attriutes the place the product occupies

in consumers6 minds relative to competing products &erceptual positioning maps can help define a

rand6s position relative to competitors


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Choosing a differentiation and positioning

strategy involves%

5dentifying a set of possile value differences and

competitive advantages on #hich to uild a position Choosing the right competitive advantages

Selecting an overall positioning strategy


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Ie$ti4'i$" ,&**i()e v%)ue i44ere$ce* %$

c,etitive %v%$t%"e*

The key to #inning target customers is to understand

their needs etter than competitors do and delivermore value

C,etitive %v%$t%"e

!"tent to #hich a company can position itself as

providing superior value 0chieved via differentiation


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Di44ere$ti%ti&$

0ctually differentiating the market offering to create

superior customer value

Types of differentiation% &roduct Differentiation

Services Differentiation

Channels Differentiation

&eople Differentiation 5mage Differentiation


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C&&*i$" te ri"t c,etitive %v%$t%"e

.e'uires selecting ho# many and #hich differences

to promote

Differences that could e promoted are%i+ 5mportant

ii+ Distinctive

iii+ Superior

iv+ Communicalev+ &reemptive

vi+ 0ffordale

vii+ &rofitale


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Se)ecti$" %$ &ver%)) .&*iti&$i$" Str%te"'

verall or full positioning of the rand is called the

rand6s value proposition

&otential value propositions include%i+ More for more more enefits for higher price

ii+ More for same more enefits for the same price

iii+ More for less more enefits for a lo#er price

iv+ Same for less same enefits for a lo#er pricev+ 7ess for much less fe#er enefits for much lo#er

price


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Deve)&,i$" % ,&*iti&$i$" *t%te#e$t

Company and rand positioning should e summed

up in a positioning statement

.&*iti&$i$" St%te#e$t 0 statement that summari/es company or rand

positioning

F&r#%t

8To 1target segment and need3 our 1rand3 is 1aconcept3 that 1point the difference39


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Developing a positioning statement

E%#,)e

8To (u*' ,r&4e**i&$%)* w& $ee t& %)w%'* (e i$

te )&&,, B)%cBerr' is a wire)e** c&$$ectivit'

*&)uti&$that "ive* '&u %$ e%*ier9 #&re re)i%()e w%'

t& *t%' c&$$ecte t& %t%9 ,e&,)e %$ re*&urce*

wi)e &$ te "&9


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COMMUNICATING AND DELIERINGCOMMUNICATING AND DELIERING

T5E C5OSEN .OSITIONT5E C5OSEN .OSITION

Company must take strong steps to deliver and

communicate the desired position to target

consumers

The marketing mi" efforts must support thepositioning strategy

4irm must monitor and adapt the position over

time to match changes in consumer needs and

competitors6 strategies

bm3108_lecture 5.ppt

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