class 6.pptx

Part 3: Designing a Customer Value-Driven Strategy and Mix Customer-Driven Chapter# 07 MarketingMarketing Customer-Driven Strategy Strategy Creating Creating Value Value for Target for Target Customers Customers Learnin...

Part 3: Designing a Customer Value-Driven Strategy and Mix Customer-Driven Chapter# 07 MarketingMarketing Customer-Driven Strategy Strategy Creating Creating Value Value for Target for Target Customers Customers Learning Outcomes 1. Define the major steps in designing a customer-driven marketing strategy: market segmentation, targeting, differentiation, and positioning. 2. List and discuss the major bases for segmenting consumer and business markets. 3. Explain how companies identify attractive market segments and choose a market- targeting strategy. 4. Discuss how companies differentiate and position their products for maximum competitive advantage.  Consumer Market Segment ation Internatio Busines nal s Market Market Step 1. Market Segmentation Bases for Segmenting Consumer Markets Geographic Nations, states, Regions, cities Demographic Age, gender, life cycle stage, income Psychographic Social class, lifestyle, personality Behavioral Occasions, benefits, user status, usage rate, loyalty status Identifying Segmentation https:// www.claritas.com/products-solutions http:// www.experian.com/marketing-services/con sumer-segmentation.html Step 1. Market Segmentation Bases for Segmenting Business Markets Personal Demographics Characteristics Bases Bases for for Segmenting Segmenting Situational Business Business Operating Factors Markets Markets Characteristics Purchasing Approaches Step 1. Market Segmentation Bases for Segmenting International Markets Cross-Market Segmentation Geography Economy Cultural factors Political and legal factors Step 1. Market Segmentation Requirements for Effective Segmentation Measurable Measurable Size, purchasing power, profiles of segments can be measured. Accessible Accessible Segments must be effectively reached and served. Substantial Substantial Segments must be large or profitable enough to serve. Differential Differential Segments must respond differently to different marketing mix elements & actions. Actionable Actionable Must be able to attract and serve the segments.  Step 2. Market Targeting Evaluating Market Segments Segment Size and Growth Analyze sales, growth rates and expected profitability. Segment Structural Attractiveness Consider effects of: Competitors, Availability of Substitute Products and, the Power of Buyers & Suppliers. Company Objectives and Resources Company skills & resources relative to the segment(s). Look for Competitive Advantages.  Micromarketing Micromarketing Products Products to to suit suit the the tastes tastes of of individuals individuals or or locations locations (complete (complete segmentation) segmentation) Niche Niche Marketing Marketing Different Different products products toto subgroups subgroups within within segments segments (( more more segmentation) segmentation) Segmented Segmented Marketing Marketing Different Different products products to to one one or or more more segments segments (some (some segmentation) segmentation) Mass Mass Marketing Marketing Same Same product product to to all all consumers consumers (no (no segmentation) segmentation) Levels of Market Segmentation Market Segmentation No Market Segmentation Segmented by Gender Segmented by Age  C. Concentrated Marketing Segment Segment33 Company Company Segment Segment22 Marketing Marketing Mix Mix Segment Segment11 B. Differentiated Marketing Company Company Segment Segment33 Marketing Marketing Mix Mix 33 Company Company Segment Segment22 Marketing MarketingMix Mix22 Segment Company Company Segment11 Marketing MarketingMix Mix11 A. Undifferentiated Marketing Company Company Market Market Marketing Marketing Mix Mix Choosing a Targeting Strategy Step 2. Market Targeting Undifferentiated Strategy Single Marketing Mix Organization Target Market  Differentiated Strategy Marketing Mix 1 Marketing Mix 2 Organization Target Market Concentrated Strategy Single Marketing Mix Organization Target Market Micro Marketing (local/ individual) Tailored Marketing Mix Organization Target Market Step 3. Positioning for Competitive Advantage Product’s Position – The way a product is defined by consumers on important attributes-the place the product occupies in consumers’ minds relative to competing products; i.e. Volvo positions on “safety”. Marketers must: Plan positions to give products the greatest advantage Develop marketing mixes to create planned positions ffd Positioning: IKEA does more than just sell affordable home furnishings; it’s the “Life improvement store.” Steps to Choosing and Implementing a Positioning Strategy Step 1. Identifying a set of possible competitive advantages: Competitive Differentiation. Step 2. Selecting the right competitive advantage. Step 3. Effectively communicating and delivering the chosen position to the market. Image Image Personnel Personnel Areas Areas for for Competitive Competitive Differentiation Differentiation Service Service Product Product Differentiation Developing Competitive Product Differentiation Conform- Fea- Perfor- Form Quality ance tures mance Quality Dura- Relia- Repair- Style Design bility bility ability Service Differentiation Ordering Ordering Customer Customer Installation Installation Ease Consulting Miscellaneous Ease Consulting Services Customer Customer Maintenance Maintenance Delivery Delivery Training Training && Repair Repair Personnel Differentiation Image Differentiation Media Atmosphere Symbols Events  Communicable Communicable Preemptive Preemptive Promote to Superior Superior Differences Affordable Affordable Which Determining for Distinctive Criteria Profitable Distinctive Profitable Important Important Advantages Choosing the Right Competitive Unique Selling Proposition Many marketers think that companies should aggressively promote only one benefit to the target market which is known as the USP of the brand/product.  Users Users F Usage F B Against Usage B Against aa EE Occasions Occasions DD Competitor Competitor A A CC HH GG Benefits Benefits Away Away from from Offered Offered Competitors Competitors Product Product Product Product Attributes Attributes Class Class Advantage: Strategies Positioning for Competitive Perceptual Maps http://www.segmentationstudyguide.com/u nderstanding-perceptual-maps/perceptual- maps/  Selecting On Overall Positioning Strategy Value Proposition: full mix of benefits on which a product is positioned Price More The Same Less More More for More for More for More the Same Less Benefits The The Same Same for Same for More Less Less Less for Less for Less for much More the Same Less Developing a Positioning Statement A statement that summarizes company or brand positioning using the form: To (target segment and need) our (brand) is (concept) that (point of difference). Example: Evernote ( a digital information management application) “To busy multitaskers who need help remembering things, Ever-note is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the Web.” Communicating and Delivering the Chosen Position Consistent performance and communication Brand position must be kept in mind when communicating to the consumers via all means e.g. advertisements, public messages, promotional activities and social responsibility endeavors. A brand positioning may evolve over time however it may damage the brand to abruptly change its position. Steps in Segmentation, Targeting, and Positioning 6. Develop Marketing Mix for Each Target Segment Market 5. Develop Positioning Positioning for Each Target Segment 4. Select Target Segment(s) Market 3. Develop Measures of Segment Attractiveness Targeting 2. Develop Profiles of Resulting Segments 1. Identify Bases Market Segmentation for Segmenting the Market