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Chapter 7 - Coggle Diagram
Chapter 7
Customer-Driven Marketing Strategy
Market Targeting
Evaluating each market segment's attractiveness
Selecting 1 or more segments to serve
Differentiation
Differentiating the market offering
Create superior customer value
Market Segmentation
Dividing a market into distinct groups of buyers
Who have different needs, characteristics or behaviours
Who might require seperate marketing strategies or mixes
Positioning
Arranging for a market offering
Occupy a dear, distinctive and desirable place relative to competing products in the minds of target consumers
Market segmentation
Segmenting business markets
customer operating characteristics
Demographic segmentation
purchasing approaches
situational factors
Geographic segmentation
personal characteristics
Segmenting international markets
economic factors
political and legal factors
geographic location
Cultural factors
Segmenting consumer markets
Demographic segmentation
Age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generation
Psychographic segmentation
Lifestyle, personality
Geographic segmentation
Nations, regions, states, counties, cities, neighbourhoods, population density (urban, suburban, rural), climate
Behavioural segmentation
Occasions, benefits, user status, usage rate, loyalty status
Using multiple segmentation bases
to identify smaller, better-defined target groups
provide multivariable segmentation systems that merge geographic, demographic, lifestyle and behavioural data
help companies segment their markets down to postal codes, neighbourhoods and even households
Requirements for effective segmentation
Accessible
Substantial
Measurable
Differentiable
Actionable
Differentiation and Positioning
Product position
the way a product is defined by consumers on important attributes-the place it occupies in consumer's minds relative to competing products
positioning maps
indicates the brand's perceived positioning on dimensions
price
orientation
choosing a differentiation and positioning strategy
competitive advantage
means : an advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher price
choosing the right competitive advantage
a differences sastisfies the following criteria
communicable
the difference is communicate and visible to buyers
preemptive
competitors cannot easily copy the difference
superior
the difference is superior to other ways that customers might obtain the same benefit
affordable
buyers can afford to pay for the difference
distinctive
competitors do not offer the difference or the company can offer it in a more distinctive way
profitable
the company can introduce the difference profitable
important
the difference delivers a highly valued benefit to target buyers
positioning strategy
selecting an overall positioning strategy
developing a positioning statement
use this form : to target( segment and need) our (brand) is (concept) that ( point of difference)
communicating and deliver the choosen position
value proposition : the full positioning of a brand - the full mix of benefits in which it is positioned
the 5 winning value proposition
the same for less
less for much less
more for the same
more for less
more for more
Market targeting
Evaluating market segments
Segment size and growth
Segment structural attractiveness
Company objectives and resources
Selecting target market segments
Undifferentiated marketing
targets the whole market with one offer
Mass marketing
Focuses on common needs rather than what’s different
Differentiated marketing
targets several different market segments and designs separate offers for each
to achieve higher sales and a stronger position
More expensive than undifferentiated marketing
Concentrated marketing
targets a small share of a large market
More effective and efficient
Knowledge of the market
Limited company resources
Micromarketing
Tailoring products and marketing programmes to the needs and wants of specific individuals and local customer segments
Local marketing
drawbacks
drive up manufacturing and marketing costs
create logistics problems
increasingly fragmented markets and as new supporting digital technologies develop
the advantages often outweigh the drawbacks.
Individual marketing
also been labelled
one-to-one marketing
mass customisation
markets-of-one marketing
Choosing a targeting strategy
best depends on the company’s resources
resources are limited ->concentrated marketing
Undifferentiated marketing is more suited for uniform products
market variability
competitors’ marketing strategies
Socially responsible target marketing
Smart targeting
focusing on the segments that companies can satisfy best and most profitably
serve specific groups of consumers with offers carefully tailored to their needs