Week3: Customer-driven marketing strategies.
(created value for targeted customer)

  1. DIFFERENTIATION
    (differentiate market offering to create superior customer value)
  1. POSITIONING
    (position the market offering in the minds of target customer)
  1. TARGETING (select the segment or segment to enter)

VALUE PROPOSITION (Differentiation and positioning)

1. SEGMENTATION (Divide the total market into smaller segmentation)

Demographic segmentation (209)

Psychographic segmentation (212)

behavourial segmentation

Geographic segmentation(208)

differentiated (segmented) marketing (221)

Concentrated (niche) marketing (222)

Undifferentiated (mass) marketing(221)

Micro-marketing (local or individual marketing)

perceptual positioning map

shows customer perception on their brand vs competitors on important dimensions

Help marketers to identify the gaps

More B less P

Same B less P

Less B for much less P

More B same P

More B more P

Step2

step 3

Step 4

Defination: a business divides its market on the basis of geography (208)

example

By city, county, state, region, country, or international region.

By rural, suburban, and urban market segments.

By climate or total population in each area.

divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

The most popular bases for segmenting customer group.
Because:

Needs,wants and usage rates vary closely with demographic variables

Demographic variables are the easiet factor to measure

Demographic characteristics (210)

Age and life-cycle stage (210)

Gender (Nike) (211)

Income(211)

Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics.

Behavioural segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.

Ocasion

benefit sought

user status

usage rate

loyalty status

when they buy or consume products
ex: Valentine, mother day,..

different customer seek for different benefits in the same item

non-users, ex-users, potential users, first time users, etc.

have to convert non-user to new user

potential users: facing life-stage changes

light, medium and heavy

3 levels of loyal customer.

Understand the completelyloyal customers' wants

Detect competitors from less loyal cus.

Learn abt marketing weekness.

Requirements for effective segmentation

substantial (Lượng khách hàng đủ lớn)

accessible (có khả năng tiếp cận khách hàng)

differentiable (có sự khác biệt giữa các thị trường)

Measurable (đo lường được)

actionable (nguồn nhân lực đủ lớn)

step 1

Evaluating market segment
(before targeting market)

Market size and growth

company objectives and sources

Segment structural attractiveness

competitors

power of buyers

should offers superior and gain advantages over competitor

focus on what is common

hard to compare with focused firms

capture more market share

increase the cost of doing business

efficiently

highly profitable but higher risk

Focus on specific individual and location

Local marketing

individual marketing

drive up marketing and manufacturing costs

logistic problems (try to meet varied requirements of different locals

dulited image if product and message vary too much in different localties

to market effectively in the face of pronounced regional and local differences in demo and lifestyle

should be careful with sterotype

provide the way to stand out

tightening relationship with customers

CHOOSING TARGETING STRATEGY
(225)

company resouces

market variability

product variability

competitor's marketing strategy

product's life-cycle stage

Choosing the right competitive advantages

Selecting an Overall Positioning Strategy
(value propositioning)

Identifying possible value differences and competitive advantages

product

channel

people

image

service

important

distinctive (competiors can not offer)

superior

pre-emptive (no easy to copy)

communicable and visible

affordable

profitable