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Download CHAPTER 4 MANAGING MARKETING INFORMATION
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CUSTOMER DRIVEN MARKETING STRATEGY: CREATING VALUE FOR TARGET CUSTOMERS • Nowadays, marketer can’t apply the same strategies to all buyers. • It is because the buyer are too numerous, too widely scattered and too varied in their needs and buying practices. • So, marketers have to vary widely in their abilities in serve different segment of the market. • Thus, marketer need to change from mass market into target market. • There are 4 steps in designing the marketing strategies. STEPS IN DESIGNING STRATEGIES Select customer to serve SEGMENTATION Divide the total market into smaller segment TARGETING Target the segment to enter Decide on the value proposition DIFFERENTIATION Differentiate the market offer from competitor and create superior value POSITIONING Position the market offering in the minds of target customers MARKET SEGMENT MARKET TARGET KIDS YOUNG/ADULT OLD PROMOTION!!! KIDS LOVE TOYS!!!! SO, GIVE TOYS TO KIDS IN HAPPY MEAL!!! DIFFERENCIATION POSITIONING MARKET SEGMENTATION • Dividing A market into smaller group with distinct needs, characteristic or behavior, who might required separate product or marketing mixed. • There are 2 broad groups of variables are used in segmenting the peoples. 1. Segmenting consumer market 2. Segmenting business market Segmenting Consumer Market • Form segments by looking at consumer characteristics 1. Geographic 2. Demographic 3. Psychographic 4. Behavior 1) GEOGRAPHIC • Dividing a market into different geographical units such as nations, states, regions, countries, cities or neighborhood. • A company may decide to operate in one or a few geographical area. • Some companies nowadays are localization their product to fit the needs of individual region, cities and neighborhood. • Some companies are seeking to cultivate as-yet untapped geographical territories. 2)Demographic • Divided into groups on the basis of variables such as age, family, size, life cycle, gender, income, occupation, education, religion, race, generation, nationality and social class. • The most popular basis for distinguishing customer groups. • One reason is that consumer wants, preferences, usage rates are often associated with demographic variables. • Another reason is that demographic variables are easier to measure even when the target market is defined in non-demographic terms. 1) Age and life cycle segmentation • Divide a market into different age and life-cycle group. 2) Gender segmentation • Divide a market into different groups based on gender. • E.g. cloth, magazine, cosmetic 3) Income segmentation • Divide a market into different income group. • E.g. automobile, financial services, travelling 3. Psychographic • Buyers are divided into different groups based on personality and values. • People within the same demographic group can exhibit very different psychographic profiles such as their Lifestyle, Personality & Values 4) Behavior • Buyers are divided into groups on the basis of their knowledge of, attitude toward, use of, or response to a product • Most of the company will divide the consumer based on their occasional segmentation and benefit segmentation. • Occasional segmentation - divided into groups according to occasions when the buyer get idea to buy. • Benefit segmentation - divided into groups according to the different benefits that the consumer seek from the product. MARKET TARGETING • Firm must evaluate the various segments and select how many and which segment it can serve the best Firm must look at 3 factors; 1. Segment size and growth 2. Segment structural attractiveness • The segment are less attractive if there are a lot of strong and aggressive competitors, power of buyer and powerful supplier. 3. Company objective and resources Selecting Target Market Segment • After evaluate different segment, company willl target the segment to serve. • Target market consist of set of buyer who share common needs and characteristic that the company decide to serve. • Buyer have unique need and want, so marketer will separate them in different segment. • Market targeting can be carry out in several different level. Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrate (niche) marketing Micromarketing (local or individual marketing) 1) Undifferentiated (mass) marketing • Broadly target the segmentation • Market ignore the market segment differences and target the whole market with one offer. • Focus on common needs of consumer rather that it different. 2) Differentiated (segmented) marketing • Firm decide to target several market segment and design separate offer for each segment. • Company are able to get higher profit from each segment. • Separate segment required extra marketing research, forecast, promoting and channel management. 3) Concentrate (niche) marketing • When company resources are limited • Firm goes after a large share of one or a few segment or niches. • Firm will achieve strong position in market because of greater knowledge of consumer needs in a niches • The segment are smaller and it may attract only one or few competitor • Firm can be get high profit and at the same time, it involve high risk. 4) Micromarketing (local or individual marketing) • Target very narrowly • Practice of tailoring product and marketing program to the needs and want of specific individual and local customer group. • Include local and individual marketing. • Local marketing – tailor brand and promotion to the need and want of local customer group (cities, neighboorhood, demographic) • Individual marketing - tailor brand and promotion to the need and want of indiividual customer – also known as “market of one market”, “customized market” and “one to one marketing” DIFFERENTIATION AND POSITIONING DIFFERENTIATION Firm should offer the different product to each segment. The product also need to different from the competitor. POSITIONING The way to make sure, the product is define by consumer on important characteristic. The place where the product occupied in consumer’s mind relative to competing product. SWOT A method, or model is a way to analyze competitive position of your company. SWOT analysis uses so-called SWOT matrix to assess both internal and external aspects of doing your business. The SWOT framework is a tool for auditing an organization and its environment. Is the first stage of planning and helps decision makers to focus on key issues. SWOT method is a key tool for company top officials to formulate strategic plans. SWOT model analyzes factors that are internal to your business and also factors that affect your company from outside. Strengths and weaknesses in the SWOT matrix are internal factors. Opportunities and threats are external factors. STRENGTHS AND WEAKNESSES • Strengths and weaknesses are internal value creating (or destroying) factors that can be control such as assets, skills, or resources a company has at its disposal relatively to its competitors. • Below you can find a few examples of what your strengths might be: Unique product Location of your business Patents, know-how, trade secrets Worker's unique skill set Corporate culture, company image Quality of your product Access to financing Operational efficiency The following list shows a few examples of weaknesses: Location of your business Lack of quality and customer service Poor marketing and sales Access to resources Undifferentiated products or services OPPORTUNITIES AND THREATS Opportunities and threats are external value creating (or destroying) factors a company cannot control but emerge from either the competitive dynamics of the industry or market or from demographic, economic, political, technical, social, legal, or cultural factors. An opportunity in the SWOT model could be for example: A new emerging or developing market (niche product, place - new country, less competition) Merger, joint venture, or strategic alliance Market trends New technologies Social changes (for example demographics) New competition in the market, possibly with new products or New competition in the market, possibly with new products or services Example of threat could be: Price wars Economic conditions Political changes Competitor oligopoly or monopoly Taxation Availability of resources End slogan and Credits Text area Thanks you for viewing our presentation. THE END