C7 Customer Value - Driven Marketing Strategy

Marketing Strategy

Market Segmentation

Market Targeting

Differentiation and Positioning

Create Value for targeted customers

Select Customers to Serve

Decide on a value proposition

Segmentation

Targeting

Differentiation

Positioning

Segmenting Consumer Markets

  1. Geographic Segmentation
  1. Demographic Segmentation
  1. Psychographic Segmentation
  1. Behavioral Segmentation
  1. Using Multiple Segmentation Bases

Occasions

Benefits Sought

User Status

Loyalty Status

Age and Life-Cycle Stage

Gender

Income

Segmenting Business Markets

Segmenting International Markets

Requirements for Effective Segmentation

  1. Accessible
  1. Substantial
  1. Measurable
  1. Differentiable
  1. Actionable

Evaluating Market Segments

Selecting Target Market Segments

  1. Undifferentiated Marketing / Mass Marketing
  1. Differentiated Marketing / Segmented Marketing
  1. Concentrated Marketing / Niche Marketing
  1. Micromarketing / Local or Individual Marketing

Local Marketing

Individual Marketing

  1. Choosing a Targeting Strategy
  1. Socially Responsible Target Marketing

Positioning Maps

Choosing a Differentiation and Positioning Strategy

  1. Identifying Possible Value Differences and Competitive Advantages
  1. Choosing the Right Competitive Advantages
  1. Selecting an Overall Positioning Strategy

The Same for Less

Less for Much Less

More for the Same

More for Less

More for More

Broadly

Narrow

best starting point for building market segments

grouped into occasion segmentation,
when they get the idea to buy,
actually make their purchases, or use the purchased items

size, purchasing power, and profiles of the segments can be measured

market segments can be effectively reached and served

market segments are large or profitable enough to serve

largest possible homogeneous group worth pursuing with a tailored
marketing program

segments are conceptually distinguishable and respond differently to different marketing mix elements and programs

Effective programs can be designed for attracting and serving the segments

Dividing the market into segments according to the different benefits that consumers seek from the product.

requires finding
the major benefits people look for in a product class

people who buy wearable health and activity trackers are looking
for a variety of benefits

divided into groups according to their degree of loyalty

segmented into nonusers, ex-users, potential users, first-time users, and regular users of a product

Usage Rate

segmented into
light, medium, and heavy product users

whether they own a MacBook Pro, an iPhone, or an iPad, Apple devotees are granite like in their devotion to the brand.

geographic location

economic factors

political and legal factors

Cultural factors

Dividing a market into different segments based on lifestyle or personality characteristics.

firm goes after a large share of one or a
few segments or niches

greater knowledge of consumer needs in the
niches it serves

market more effectively by fine-tuning its products, prices, and programs to the needs of carefully defined segments

gives prestige to the buyer

A company can attack a competitor’s value proposition
by positioning its brand as offering more for the same price