4568-4584_07

5/17/2018 4568-4584_07

1/36Chapter 7- slide 1

Chapter Seven

Customer-Driven Marketing

Strategy:Creating Value for Target

Customers

5/17/2018 4568-4584_07

2/36Chapter 7- slide 2Copyright 2010 Pearson Education, Inc.

Pulishing as Prentice !all

Custo"er-#riven $ar%eting Strategy&Creating 'alue (or )arget Custo"ers

Market Segmentation

Market Targeting Diferentiation and Positioning

Topic Outline

5/17/2018 4568-4584_07

3/36Chapter 7- slide *Copyright 2010 Pearson Education, Inc.


Market segmentation is theprocess that companies use to

divide large heterogeneousmarkets into small markets thatcan be reached more eciently

and efectively with products andservices that match their uniqueneeds

$ar%et Seg"entation

5/17/2018 4568-4584_07

4/36Chapter 7- slide +Copyright 2010 Pearson Education, Inc.


$ar%et Seg"entation

5/17/2018 4568-4584_07

5/36Chapter 7- slide Copyright 2010 Pearson Education, Inc.


Segmenting consumer markets

Segmenting business markets

Segmenting international markets equirements !or efective

segmentation

$ar%et Seg"entation

5/17/2018 4568-4584_07

6/36Chapter 7- slide Copyright 2010 Pearson Education, Inc.


$ar%et Seg"entation

Segmenting Consumer Markets

5/17/2018 4568-4584_07

7/36Chapter 7- slide 7Copyright 2010 Pearson Education, Inc.


$ar%et Seg"entation

"eographic segmentation dividesthe market into diferent

geographical units such as nations#regions# states# counties# or cities


5/17/2018 4568-4584_07

8/36Chapter 7- slide

Copyright 2010 Pearson Education, Inc.


$ar%et Seg"entation

Demographic segmentation dividesthe market into groups based on

variables such as age# gender#!amily si$e# !amily li!e cycle# income#occupation# education# religion# race#generation# and nationality


5/17/2018 4568-4584_07

9/36Chapter 7- slide /



$ar%et Seg"entation

Age and life-cycle stagesegmentation is the process o!

ofering diferent products or usingdiferent marketing approaches !ordiferent age and li!e%cycle groups

ender segmentation divides themarket based on se& 'male or!emale(

5/17/2018 4568-4584_07




$ar%et Seg"entation

!ncome segmentation dividesthe market into a)uent or low%

income consumers"sychographic segmentation

divides buyers into diferentgroups based on social class#

li!estyle# or personality traits


5/17/2018 4568-4584_07




$ar%et Seg"entation

#ehavioral segmentationdivides buyers into groups

based on their knowledge#attitudes# uses# or responses toa product

*ccasions

+ene,ts sought -ser status -sage rate .oyalty status


5/17/2018 4568-4584_07




$ar%et Seg"entation

Multiple segmentation is used to

identi!y smaller# better%de,ned targetgroups

eodemographic segmentationis an

e&ample o! multivariable segmentationthat divides groups into consumerli!estyle patterns

$sing Multiple Segmentation #ases

5/17/2018 4568-4584_07

13/36

Chapter 7- slide 1*Copyright 2010 Pearson Education, Inc.


$ar%et Seg"entation

"%!&M '( classi,es every /mericanhousehold into 00 unique segmentsorgani$ed into 12 diferent socialgroups3

These groups segment people andlocations into marketable groups o!like%minded consumers that e&hibit

unique characteristics and buyingbehavior based on a host o!demographic !actors

$sing Multiple Segmentation #ases

5/17/2018 4568-4584_07

14/36

Chapter 7- slide 1+Copyright 2010 Pearson Education, Inc.


$ar%et Seg"entation

Segmenting !nternational markets

5/17/2018 4568-4584_07

15/36

Chapter 7- slide 1Copyright 2010 Pearson Education, Inc.


$ar%et Seg"entation

!ntermarket segmentation

divides consumers into groups withsimilar needs and buyingbehaviors even though they are

located in diferent countries

Segmenting #usiness Markets

5/17/2018 4568-4584_07

16/36



$ar%et Seg"entation

To be use!ul# market segmentsmust be4

%e)uirements for (*ective Segmentation

5/17/2018 4568-4584_07

17/36



$ar%et )argeting

Target market consists o! a set o!buyers who share common needsor characteristics that thecompany decides to serve

Selecting Target Market Segments

5/17/2018 4568-4584_07

18/36



$ar%et )argeting

Segment si$e and growth

Segment structural attractiveness

5ompany ob6ectives and resources

(valuating Market Segments

+

5/17/2018 4568-4584_07

19/36

Chapter 7- slide 1/Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all

$ar%et )argeting

Target Marketing Strategies

5/17/2018 4568-4584_07

20/36

Chapter 7- slide 20Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all

$ar%et )argeting

$ndi*erentiatedmarketing

targets the whole market with oneofer

7 Mass marketing

7 8ocuses on common needs ratherthan what9s diferent


5/17/2018 4568-4584_07

21/36


$ar%et )argeting

Di*erentiated marketing targetsseveral diferent market segmentsand designs separate ofers !oreach

"oal is to achieve higher sales and

stronger position

More e&pensive thanundiferentiated marketing


5/17/2018 4568-4584_07

22/36


$ar%et )argeting

5oncentrated marketingtargets a small share o! a

large market .imited company resources

:nowledge o! the market

More efective and ecient

Target Market Strategies

5/17/2018 4568-4584_07

23/36

Chapter 7- slide 2*Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all

$ar%et )argeting

Micromarketingis the practice o!tailoring products and marketingprograms to suit the tastes o!speci,c individuals and locations

.ocal marketing

;ndividual marketing


5/17/2018 4568-4584_07

24/36

Chapter 7- slide 2+Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all

$ar%et )argeting

,ocal marketing involvestailoring brands and promotion tothe needs and wants o! localcustomer groups

5ities

5/17/2018 4568-4584_07

25/36


$ar%et )argeting

!ndividual marketing involvestailoring products and marketing

programs to the needs and pre!erenceso! individual customers

/lso known as4

7 *ne%to%one marketing

7 Mass customi$ation

7 Markets%o!%one marketing


5/17/2018 4568-4584_07

26/36


$ar%et )argeting

Depends on4

5ompany resources

Product variability

Product li!e%cycle stage

Market variability

5ompetitor9s marketing strategies

Choosing a Target Market

5/17/2018 4568-4584_07

27/36


$ar%et )argeting

+ene,ts customers withspeci,c needs

5oncern !or vulnerablesegments

5hildren

7 /lcohol7 5igarettes

7 ;nternet abuses

Socially %esponsile Target Marketing

5/17/2018 4568-4584_07

28/36


#i((erentiation and Positioning

"roduct position is the waythe product is de,ned byconsumers on importantattributes=the place the

product occupies in consumers9minds relative to competingproducts

7 Perceptions

7 ;mpressions7 8eelings

5/17/2018 4568-4584_07

29/36

Chapter 7- slide 2/Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all


Positioningmaps showconsumer

perceptions o!their brandsversuscompetingproducts onimportantbuyingdimensions

5/17/2018 4568-4584_07

30/36

Chapter 7- slide *0Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all


;denti!ying a set o! possible

competitive advantages to build aposition

5hoosing the right competitive

advantages Selecting an overall positioningstrategy

Developing a positioning statement

Choosing a Di*erentiation and "ositioning Strategy

5/17/2018 4568-4584_07

31/36



Competitive advantage is anadvantage over competitors gainedby ofering consumers greater value#either through lower prices or byproviding more bene,ts that 6usti!y

higher prices

!dentifying "ossile Value Di*erencesand Competitive Advantages

5/17/2018 4568-4584_07

32/36



;denti!ying a set o! possiblecompetitive advantages to build

a position by providing superiorvalue !rom4

Choosing a Di*erentiation and "ositioning Strategy

5/17/2018 4568-4584_07

33/36

Chapter 7- slide **Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all


Diference to promote should be4

Choosing the %ight Competitive Advantage

5/17/2018 4568-4584_07

34/36

Chapter 7- slide *+Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all


Value

propositionis the !ull mi&o! bene,ts

upon which abrand ispositioned

Selecting an Overall "ositioning Strategy

5/17/2018 4568-4584_07

35/36

Chapter 7- slide *Copyright 2010 Pearson Education, Inc.Pulishing as Prentice !all

Co""unication and #elivering theChosen Position

5hoosing the positioning is o!ten easierthan implementing the position3

5/17/2018 4568-4584_07

36/36

Ch t 7 lid *Copyright 2010 Pearson Education Inc

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 !"! Pearson #ducation, $nc.Copyright !"! Pearson #ducation, $nc.

Publishing as Prentice %allPublishing as Prentice %all

4568-4584_07

Documents

Transcript of 4568-4584_07