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Lecture fundamentals of marketing - Lecture 12: Creating value for target customers

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In this chapter, the following content will be discussed: Market targeting, differentiation and positioning, selecting target market segments, evaluating market segments, target marketing strategies, four levels of micromarketing,...

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Creating Value for Target

LECTURE­12

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§ Market Targeting

§ Differentiation and Positioning

• Topic Outline

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Market Targeting

Target market consists of a set of buyers who share common needs or characteristics that the company

decides to serve

• Selecting Target Market Segments

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Market Targeting

§ Segment size and growth

§ Segment structural attractiveness

§ Company objectives and resources

• Evaluating Market Segments

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Market Targeting

Undifferentiated marketing targets the

whole market with one offer

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Market Targeting

Differentiated marketing targets several

different market segments and designs

separate offers for each

§ Goal is to achieve higher sales and

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• Target Market Strategies

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Marketing Targeting

Micromarketing is the practice of

tailoring products and marketing

programs to suit the tastes of specific individuals and locations

§ Local marketing

§ Individual marketing

• Target Market Strategies

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Market Targeting

Local marketing involves tailoring

brands and promotion to the needs and wants of local customer groups

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Market Targeting

Individual marketing involves

tailoring products and marketing

programs to the needs and

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Four levels of Micromarketing

• Segments Marketing

• Niche Marketing

• Local areas Marketing

• Individuals Marketing

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What is a Market Segment?

A market segment consists of a group of customers who share a similar set of

needs and wants

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Niche Marketing

A niche is more narrowly defined customer group seeking a distinctive mix of benefits

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Niche Marketing…

RevolutionRevolution pioneered the concept of

“plus sized fashion”, and is very proud

to be a brand that accepts women as

they are.

http://www.revolution.bz/aboutus.php

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§ Competitor’s marketing strategies

• Choosing a Target Market

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Market Targeting

§ Benefits customers with specific needs

§ Concern for vulnerable segments

• Socially Responsible Target Marketing

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Differentiation and Positioning

Product position is the

way the product is

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Differentiation and Positioning

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§ Selecting an overall positioning strategy

§ Communicating and delivering the

• Choosing a Differentiation and Positioning Strategy

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Differentiation and Positioning

Competitive advantage is an

advantage over competitors gained by

offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices

• Identifying Possible Value Differences and Competitive Advantages

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Differentiation and Positioning

Identifying a set of possible competitive advantages to build a

position by providing superior value

from:

• Choosing a Differentiation and Positioning Strategy

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Differentiation and

Positioning

Difference to promote should be:

• Choosing the Right Competitive Advantage

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Differentiation and Positioning

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Differentiation and Positioning

§ To (target segment and need) our (brand)

is (concept) that (point of difference)

• Developing a Positioning Statement

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Communication and Delivering

the Chosen Position

Choosing the positioning is often easier than implementing the position

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Bibliography

Fifteenth Edition, Published by Prentice Hall

by Philip Kotler, Kevin Lane Keller, Abraham Koshy &

Mithileshwar Jha, 13th Edition, Published by Pearson

Education, Inc.

edition, McGraw Hill International.

Edition, Published by McGraw-Hill Irwin.

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