Post on 20-Jun-2015
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Prentice Hall, Copyright 2009Prentice Hall, Copyright 2009 11
MarketingMarketingBusiness 243Business 243
3-2Prentice Hall, Copyright 2009
Cognitive Dissonance
A buyer’s doubts shortly after a purchase about whether it
was the right decision.
Marketers combat cognitive dissonance via 1-800 numbers, FAQs, and Web
feedback forms.
CHAPTER 6
Customer-Driven Marketing Strategy:
Creating Value for Target Customers
Designing a true customer-driven marketing strategy involves:
1. Segmentation
2. Targeting
3. Differentiation
4. Positioning
SEGMENTATION
Dividing a market into smaller groups with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
Key variables:GeographicDemographicPsychographicBehavioral
No single way to segment is best
Geographic
World region or country
Region of country
City or metro size
Density
Climate
Demographic
Age, gender, family size, family life cycle, income, occupation, education, race, religion, generation, nationality
The most popular bases for segmenting customer groups
Easier to measure than most other types of variables
Psychographic Segmentation
Dividing a market into different groups based on social class, lifestyle, or personality characteristics
Behavioral Segmentation
Dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product
Segmentation
Best to use multiple segmentation bases in order to identify smaller, better-defined target groups
Start with a single base and then expand to other bases.
Business Segmentation
Consumer and business markets use many of the same variables for segmentation
Business marketers can also use:Operating characteristicsPurchasing approachesSituational factorsPersonal characteristics
Requirements for Effective Segmentation
To be useful, market segments must be:
Measurable
Accessible
Substantial
Differentiable
Actionable
Market Targeting
Market targeting involves:Evaluating marketing segments
Segment size, segment structural attractiveness, and company objectives and resources are considered
Selecting target market segments.Alternatives range from undifferentiated
marketing to micromarketing
Being socially responsible
Selecting Target Market Segments
Targeting strategies include:Undifferentiated (mass) marketing:
Ignores segmentation opportunities
Differentiated (segmented) marketing:Targets several segments and designs
separate offers for each
Concentrated (niche) marketing:Targets one or a couple small segments
Micromarketing (local or individual marketing)
Micromarketing
Tailoring products and marketing programs to suit the tastes of specific individuals and locations
Local marketing: Tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, specific stores
Individual marketing: Tailoring products and marketing programs to the needs and preferences of individual customers
Socially Responsible Targeting
Smart targeting helps both companies and consumers.
Marketing sometimes generates controversy and concern when targeting:
Vulnerable, minority or disadvantaged populations
Children and teens
Controversy arises when an attempt is made to profit at the expense of segments
Differentiation and Positioning
A product’s 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.
Perceptual positioning maps can help define a brand’s position relative to competitors
Differentiation and Positioning
Actually differentiating the marketing offering to create superior customer value
Types of differentiation:Product differentiationServices differentiationChannels differentiationPeople differentiationImage differentiation
Differentiation and Positioning
Choosing the right competitive advantage requires selecting how many and which differences to promote
Differences that could be promoted are:ImportantDistinctiveSuperiorPreemptiveAffordableProfitable
Value Proposition
Overall or full positioning of the brand is called the brand’s value proposition
Potential value propositions include:More for more: More benefits for higher price
More for same: More benefits for the same price
More for less: More benefits for a lower price
Same for less: Same benefits for a lower price
Less for much less: Fewer benefits for much lower price
Value Proposition
Developing a positioning statement
Format: “To (target segment and need) our (brand/company) is (a concept) that (point of difference).”
Example: “To busy mobile professionals who need to always be in the loop, BlackBerry is a wireless connectivity solution that gives you an easier, more reliable way to stay connected to data, people, and resources while on the go.”
Communicating and Delivering the Chosen Position
Company must take strong steps to deliver and communicate the desired position to target consumers
The marketing mix efforts must support the positioning strategy
Firm must also monitor and adapt the position over time to match changes in consumer needs and competitors’ strategies