Customer-Driven Marketing Strategy
Market segmentation involves dividing a market into smaller segments of buyers with distinct
needs, characteristics, or behaviors that might require separate marketing strategies or
mixes.
Different ways to segment the market
Market targeting:The process of evaluating each market segment’s attractiveness and selecting
one or more segments to enter.
Differentiation involves actually differentiating the firm’s market offering to create superior customer value.
Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products
in the minds of target consumers
Segmenting Consumer Markets
Geographic Segmentation: Division into different geographical units
Demographic Segmentation: Dived the market into segment based on age, gender, family size, occupation, among others.
Psychographic:Dividing a market into different segments
based on social class, lifestyle, or
personality characteristics.
Gender Segmentation: Used in Clothing, Costemtics, toiletries and magazines
Dividing a market into different segments
based on gender.
Income Segmentation:Dividing a market into different income
segments.
Used by companies of automobiles, clothing, cosmetics,
financial services, and travel
Behavioral segmentation divides buyers into segments based on
their knowledge, attitudes, uses, or responses to a product.
Occasions: Buyers are grouped according to occasions when they get the idea to buy.
Occasion segmentation can help firms build up
product usage.
Benefit Sought
Example: Special ads and packaging for holidays and events.
Grouping
buyers according to the different benefits that they seek
Behavioral Segmentation
Dividing a market based on consumer knowledge, attitudes, uses or responses to a product
User status
Nonusers
Ex-users
Potential Usrs
First time users
Regular Users
Loyalty Status: Users loyal to a brand. Example: Apple Users
Usage Rate: Markets can also be segmented into light, medium, and heavy
product users
Market Targeting: Segment opportunities
Selecting Target Market Segments: Mass Marketing Strategy, target the whole market with one offer
Differentiated Marketing: Target Several market segments and designs separate offers for each
Concentrated Marketing: Goes after a large share of one or a few smaller segments or niches
Micromarketing: is the practice of
tailoring products and marketing programs to suit the tastes of specific individuals and locations.
Local Marketing:g involves tailoring brands and promotions to the
needs and wants of local customer groups
Individual Marketing:Tailoring products and marketing
programs to the needs and preferences of
individual customers