* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download to view - University of Management and Technology
Marketing mix modeling wikipedia , lookup
Product planning wikipedia , lookup
Marketing plan wikipedia , lookup
Viral marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Youth marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Neuromarketing wikipedia , lookup
Street marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Marketing channel wikipedia , lookup
Target audience wikipedia , lookup
Multicultural marketing wikipedia , lookup
Green marketing wikipedia , lookup
Online shopping wikipedia , lookup
Sensory branding wikipedia , lookup
Global marketing wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing strategy wikipedia , lookup
Market segmentation wikipedia , lookup
Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT PRINCIPLES OF MARKETING University of Management and Technology 1901 Fort Myer Drive Arlington, VA 22209 Voice: (703) 516-0035 Fax: (703) 516-0985 Website: www.umtweb.edu Page 1 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Module 6: Customer-Driven Marketing Strategy: Creating Value for Target Customers Page 2 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Copyright Warning This presentation is the intellectual property of Pearson Education Inc. 2011. Students are hereby advised that they may not copy or distribute this work to any third party info info Page 3 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Rest Stop: Previewing the Concepts Define the major steps in designing a customer-driven marketing strategy: market segmentation, targeting, differentiation, and positioning. List and discuss the major bases for segmenting consumer and business markets. Explain how firms identify attractive market segments and choose a market-targeting strategy. info Discuss how companies differentiate and position their products for info maximum competitive advantage. Page 4 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT First Stop Best Buy – Serving the “Right” Customers At Issue info Implementation History: Increased competition from Wal-Mart and online retailers forced Best Buy to reexamine segmentation strategy and positioning strategies. Ditching Demons: Deleted demons from marketing lists, reduced promotions that tended to attract them, instituted 15% restocking fee. Customer Centricity: Adoption of this strategy forced Best Buy’s task force to ID profitable “Angel” and costly “Demon” customers. Angels accounted for 20% of customers generating bulk of profits.infoDemons were extreme bargain hunters. Embracing Angels: Stocked more items, developed better service of interest to them. Established Reward Zone loyalty program. Remodeled stores to reflect core customer segments, trained clerks to ID and cater to Angels’ shopping preferences. Overall sales have doubled, early customer centric stores outsold traditional. Page 5 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Figure 6.1: Designing a Customer-Driven Marketing Strategy info info Page 6 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Segmentation Dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. info info Demographic, geographic, psychographic and behavioral characteristics are used. Page 7 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action No single way to segment is best. Variables are often combined to better define segments. info info Page 8 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Segmentation Geographic: Nations Region of country States Counties Cities info info Neighborhoods Page 9 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action info info Zipcar targets densely populated metro areas and congested college campuses where their car-sharing services are most needed. Page 10 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Segmentation 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. info info Page 11 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. info info Page 12 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Segmentation Gender: Neglected gender segments can offer new opportunities. 12% of new Harley-Davidson purchases are now made by women. info info Page 13 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Segmentation 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. info info Page 14 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action The Benjamin Hotel’s provides dogs of wealthy owners with canine room service, dog bathrobes, a variety of dog bed styles, DVDs for dogs, and access to a Pet Psychic. info info Page 15 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Segmentation Psychographic segmentation: Behavioral segmentation: Dividing a market into different groups based on social class, lifestyle, or personality characteristics. Dividing buyers into groups based on consumer knowledge, attitudes, uses, or responses to a product. info info Page 16 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. info info Page 17 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Fuel for Thought Consumers don’t always buy the least expensive offering in a given product category, particularly when they are seeking certain benefits. What other benefits – aside from saving money – might car owners seek when shopping for insurance? Can you think of an auto insurance provider that targets consumers who seek those benefits? info info Page 18 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action info info Peeps creates different shaped marshmallow treats for special holidays as part of its occasion segmentation strategy. Page 19 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Segmentation Behavioral segmentation: User status: Nonusers, ex-users, potential users, firsttime users, regular users. Usage rate: Light, medium, heavy. Loyalty status: info Brands, stores, companies. info Divide into groups by degree of loyalty. Page 20 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market 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. Multivariable segmentation systems such as PRIZM NE are becoming more common. info info Page 21 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Segmentation PRIZM NE: Multivariable segmentation systems developed by Claritas, Inc. Potential Rating Index for Zip Markets (PRIZM NE). Based on U.S. census data. Classifies U.S. households into 66 clusters or segments within 14 different social groups. info info Page 22 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action Learn more about Prizm by watching the USA Today’s flash presentation related to market segmentation. Then visit the zip code lookup to see what Prizm says about your neighborhood! info info Page 23 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Segmenting Business Markets Consumer and business markets use many of the same variables for segmentation. Business marketers can also use: Operating characteristics. Purchasing approaches. Situational factors. Personal characteristics. info info Page 24 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Segmenting International Markets Factors used: Geographic location. Economic factors. Political and legal factors. Cultural factors. Intermarket segmentation: info info Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries. Page 25 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action info info Ikea targets the aspiring global middle class by selling good-quality furniture that ordinary people worldwide can afford. Page 26 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Requirements for Effective Segmentation To be useful, market segments must be: Measurable Accessible Substantial Differentiable Actionable info info The “lefty” segment is difficult to measure Page 27 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Market Targeting Market targeting involves evaluating and selecting marketing segments. Market evaluation considers: Segment size The largest segment isn’t always best. Segment structural attractiveness Competition, substitute products, power of buyers and suppliers are examined. info Fit with company objectives info Company resources. Page 28 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Figure 6.2: Marketing Targeting Strategies info info Page 29 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. info info Micromarketing (local or individual marketing) Page 30 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. info info Page 31 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Fuel for Thought Coupling phone services with GPS devices provides marketers with a way to target location specific offers to consumers wherever they might be. Why aren’t more marketers embracing mobile marketing? info info Page 32 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action info info The ultimate in individual marketing: video screens in some stores can determine who’s watching them and change ads accordingly. Page 33 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Choosing a Targeting Strategy Factors to consider: Company resources Product variability Product’s life-cycle stage Market variability Competitors’ marketing strategies info info Page 34 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. info info Page 35 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action Although Victoria’s Secret targets its Pink line of young, hip, and sexy clothing to women 18-30 years old, critics charge that Pink is being worn by girls as young as age 11. Should Victoria’s Secret take action to stop selling Pink to girls under the age of 18? Why or why not? info info Page 36 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Positioning The way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products. info info Perceptual positioning maps can help define a brand’s position relative to competitors. Page 37 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Figure 6.3: Positioning Map for Large Luxury SUVs info info Page 38 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. info info Page 39 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Differentiation and Positioning 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. info info Page 40 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. info info Page 41 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Differentiation and Positioning Types of differentiation: Product differentiation Services differentiation Channels differentiation info People differentiation info Consumers value customer service Image differentiation Page 42 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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. The challenge is to convince consumers that one brand can do it all. info info Page 43 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Differentiation and Positioning Worthwhile differences that could be promoted are: Important Distinctive Superior Communicable Preemptive info Affordable info Profitable Evaluate against the criteria at left Page 44 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action Positioning should make a brand stand out from the rest of the pack. As a late entrant into the small city car market in 2009, Nissan chose to position the Cube as a “personal mobile device” rather than on the basis of affordability or customization (attributes the Cube shared with the competition). info info Page 45 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Figure 6.4: Possible Value Propositions info info Overall or full positioning of the brand is called the brand’s value proposition. Page 46 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action info info Less for much less positioning in action: Southwest is a no frills, low-price airline whose employees go the extra mile to amuse, surprise, and entertain passengers. Page 47 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Differentiation and Positioning Developing a positioning statement: Format: “To (target segment and need) our (brand) 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.” info info Page 48 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Marketing in Action DiGiornio’s pizza positions itself against delivered pizzas, rather than other store bought frozen pizzas. The firm uses the “No tipping. No kidding. It’s not delivery, it’s DiGiornia!” slogan to promote its points of difference. info info Page 49 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT 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 deliver the positioning strategy. Firm must also monitor and adapt the position over time to match changes in consumer needs and competitors’ strategies. info info Page 50 of 51 Module 6, MKT100 Version 181118 Visit UMT online at www.umtweb.edu © 2011 Pearson Education Inc. © 2012 UMT Rest Stop: Reviewing the Concepts Define the major steps in designing a customer-driven marketing strategy: market segmentation, targeting, differentiation, and positioning. List and discuss the major bases for segmenting consumer and business markets. Explain how firms identify attractive market segments and choose a market-targeting strategy. info Discuss how companies differentiate and position their products for info maximum competitive advantage. Page 51 of 51 Module 6, MKT100