Download Marketing Chapter 6 Lecture Presentation (9-30-10)

Customer-Driven Marketing Strategies
Bluefield College
September 30, 2010
Major Influences on Business
Buyer Behavior
Stages of the Business Buying
Process
Designing a Customer-Driven
Marketing Strategy
Segmentation
Dividing a market into smaller segments with distinct needs,
characteristics, or behaviors that might require separate
marketing strategies or mixes.
 Demographic, geographic, psychographic and
behavioral characteristics are used.
 Demographic:
– Age, gender, family size, family life cycle, income,
occupation, education, race, religion, generation,
nationality.
– The most popular bases for segmenting customer
groups as needs, wants and usage often vary by
demographics.
– Easier to measure than most other types of
variables.
Market Segmentation
 Age and life-cycle stage addresses the fact that consumer
needs and wants change with age.
– Avoid stereotypes in promotions based on age.
– Promote positive messages when marketing to mature
consumers.
 Gender:
– Neglected gender segments can offer new opportunities.
 Income:
– Identifies and targets the affluent for luxury goods.
– People with low annual incomes can be a lucrative market.
– Troubled economy makes marketing to all income groups a
challenge.
Market Segmentation
 Geographic:
– Nations
– Region of country
– States
– Counties
– Cities
– Neighborhoods
Market Segmentation
 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.
Market Segmentation
 Behavioral segmentation:
– Occasion segmentation:
• Special labels and promotions for holidays.
• Special products for special occasions.
– Benefits sought:
• Different segments desire different benefits from products.
– User status:
• Nonusers, ex-users, potential users, first-time users, regular users.
– Usage rate:
• Light, medium, heavy.
– Loyalty status:
• Brands, stores, companies.
• Divide into groups by degree of loyalty.
Requirements for Effective
Segmentation
 To be useful, market segments must be:
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Measurable
Accessible
Substantial
Differentiable
Actionable
Market Targeting
 Market targeting involves evaluating and
selecting marketing segments.
• Segment size
– The largest segment isn’t always best.
• Segment structural attractiveness
– Competition, substitute products, power of buyers and
suppliers are examined.
• Fit with company objectives
• Company resources.
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)
• 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.
– Individual marketing: Tailoring products and marketing programs to
the needs and preferences of individual customers.
Positioning
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 define a brand’s position relative to competitors.
Differentiation and Positioning
 Choosing a differentiation and positioning
strategy involves:
– Identifying a set of differentiating competitive
advantages on which to build a position.
– Choosing the right competitive advantages.
– Selecting an overall positioning strategy.
 Competitive advantage:
– An advantage over competitors gained by
offering greater customer value, either
through lower prices or by providing more
benefits that justify higher prices.
Differentiation and Positioning
 Identifying possible value differences and
competitive advantages:
– Key to winning target customers is to understand their
needs better than competitors do and to deliver more
value.
– Finding points of differentiation requires that
marketers examine the entire customer experience.
 Types of differentiation:
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Product differentiation
Services differentiation
Channels differentiation
People differentiation
Image differentiation
Differentiation and Positioning
 Choosing the right competitive advantage requires
selecting how many and which differences to promote.
– Unique selling proposition is often preferred.
– Promoting multiple differences is possible.
 Worthwhile differences that could be promoted:
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Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
Possible Value Propositions
Overall or full positioning of the brand is
called the brand’s value proposition.