SLIDE principles of marketing chapter 4

LEARNING OBJECTIVES  Define the major steps in designing a customer value–driven marketing strategy: market segmentation, targeting, differentiation, and positioning.. MARKET SEGMENTAT

LEARNING OBJECTIVES

 Define the major steps in designing a customer value–driven marketing

strategy: market segmentation, targeting, differentiation, and positioning.

 List and discuss the major bases for segmenting consumer and business

Mass marketing Product-variety

marketing Target marketing

CUSTOMER VALUE–DRIVEN MARKETING

STRATEGY

Create value for targeted customers

CUSTOMER VALUE–DRIVEN MARKETING STRATEGY

1 MARKET SEGMENTATION

 Market segmentation

 divide large, diverse markets into smaller, more defined segments

 who have different needs, characteristics, or behaviors

 who might require separate marketing strategies or mixes

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MARKET SEGMENTATION

 Market segment

 A group of buyers that share similar characteristics such as

demographics, interests, needs, or location or similar

behavioral responses to marketing programs

Yomost

GEOGRAPHIC SEGMENTATION

 Geographic segmentation

 Dividing a market into different geographical

units, such as nations, states, regions, counties,

cities, or even neighborhoods

DEMOGRAPHIC SEGMENTATAION

 Age and life-cycle stage

 Toys, food, consumer products, clothing, etc

BEHAVIORAL SEGMENTATION

 Behavioral segmentation

 Dividing a market into segments based on

consumer knowledge, attitudes, uses of a

product, or responses to a product

USING MULTIPLE SEGMENTATION BASES

 Using Multiple Segmentation Bases

MULTIPLE SEGMENTATION BASES

• Demographic (industry, company size)

• Benefits sought; User status; Usage rate; Loyalty status

INTERNATIONAL MARKET SEGMENTATION

 Segmentation variables

 Geographic location (regions)

 Economic factors (income levels; level of economic development)

 Political and legal factors (type and stability of government, receptivity to

foreign firms, monetary regulations, and amount of bureaucracy

 Cultural factors (common languages, religions, values and attitudes,

customs, and behavioral patterns)

 Intermarket/Cross-market segment

 Forming segments of consumers who have similar needs and buying

 Differentiable

 The segments are conceptually

distinguishable and respond differently to different marketing mix elements and programs.

 Actionable

 Effective programs can

be designed for attracting and serving the segments.

2 MARKET TARGETING

 Market targeting

 Evaluate the various

segments and decide how

many and which segments

the company can serve best

InterContinental Hotels Group

EVALUATING MARKET SEGMENTS

 In evaluating different market segments, a firm must look at three factors:

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Segment size and

growth

Segment structural attractiveness

Company objectives and resources

EVALUATING MARKET SEGMENTS

 Segment structural attractiveness

(niche) marketing

Micromarketing

(local or individual marketing)

Targeting

broadly

Targeting narrowly

MARKET TARGETING

 Undifferentiated marketing (or mass marketing)

 A market-coverage strategy in which a firm decides to ignore market

segment differences and go after the whole market with one offer

 Focus on what is common in the needs of consumers rather than on what is different

Marketing mix The whole market

MARKET TARGETING

 Differentiated marketing (or segmented

marketing)

 A market-coverage strategy in which a firm

targets several market segments and designs

separate offers for each

MARKET TARGETING

 Concentrated marketing (or niche marketing)

 A market-coverage strategy in which a firm goes after a large share of one

or a few segments or niches

Segment 1

Phối thức marketing 3

Phối thức marketing 1

Marketing mix Segment 2

(Target market)

Segment 3

MARKET TARGETING

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 Micromarketing

 Tailoring products and

marketing programs to the

needs and wants of specific

individuals and local customer

segments; it includes:

• local marketing

• individual marketing

MARKET TARGETING

 Choosing a Targeting Strategy

Niche marketing

Mass marketing

Differentiated marketing

DIFFERENTIATION & POSITIONING

 Differentiation

 The process companies use to make a

product or service stand out from its

competitors in ways that provide

unique value to the customer

 Product position

 The way a product is defined by

consumers on important attributes—the

place the product occupies in

consumers’ minds relative to

competing products

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Perceptions Impressions Feelings

Product’s position

DIFFERENTIATION AND POSITIONING STRATEGY

 Perceptual positioning map

 Show consumer perceptions of their

brands versus competing

products on important buying

dimensions

 Help marketers in coming up

with the appropriate positioning

strategy, which may involve

developing new competitive

advantages or optimizing existing

DIFFERENTIATION AND POSITIONING STRATEGY

 The differentiation and positioning task consists of:

Select an overall positioning strategy

Develop and communicate a positioning statement

DIFFERENTIATION AND POSITIONING STRATEGY

 Identifying possible value differences and competitive advantages

 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.

 Points of differentiation:

Product differentiation: features, performance, or style and design.

Services differentiation: speedy, convenient, high-quality service

Channel differentiation: coverage, expertise, and performance.

People differentiation: hiring and training human resources.

DIFFERENTIATION AND POSITIONING STRATEGY

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 Choosing the right competitive advantage

 Difference to promote should be:

1 Important: The difference delivers a highly valued benefit to

target buyers.

2 Distinctive: Competitors do not offer the difference, or the

company can offer it in a more distinctive way.

3 Superior: The difference is superior to other ways that

customers might obtain the same benefit.

4 Communicable: The difference is communicable and visible to

buyers.

5 Preemptive: Competitors cannot easily copy the difference.

6 Affordable: Buyers can afford to pay for the difference.

7 Profitable: The company can introduce the difference

profitably.

DIFFERENTIATION AND POSITIONING STRATEGY

 Selecting an overall positioning strategy

More for more

More for the same

More for less

The same for less Less

DIFFERENTIATION AND POSITIONING STRATEGY

 Developing a positioning statement

 Positioning statement

• A statement that summarizes company or brand positioning.

 Structure:

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and the web.”

DIFFERENTIATION AND POSITIONING STRATEGY

 Communicating and delivering the chosen

position

 Take strong steps to deliver and communicate

the desired position to its target consumers

 All the company’s marketing mix efforts must

support the positioning strategy

 Involve working out the tactical details of the

FINAL GROUP ASSIGNMENT

 Outline (to be continued)

1 INTRODUCTION

• About the company and its product lines/product portfolio

• About the brand

2 MARKETING ENVIRONMENT ANALYSIS

• Micro-environment

• Macro-environment

3 TARGET MARKETING STRATEGY

• Market segmentation: Analyse segmentation bases the company uses to segment its market.

• Identify the company’s targeting strategy and describe the characteristics of its target market segment(s).

• Positioning: Specify the company’s competitive advantages and its positioning statements.

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SWOT