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W3: Customer - Driven Marketing Strategy

1. Designing a customer-driven marketing strategy involves 4 steps: market segmentation, market targeting, product differentiation, and positioning. 2. Market segmentation involves dividing the market into subgroups based on geography, demographics, psychographics, and behaviors. The most popular bases are demographic and behavioral. 3. After segmentation, companies choose target markets and positioning strategies to best serve customer needs in a profitable way. Undifferentiated, differentiated, concentrated, and micro-marketing are 4 targeting strategies.

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46 views8 pages

W3: Customer - Driven Marketing Strategy

1. Designing a customer-driven marketing strategy involves 4 steps: market segmentation, market targeting, product differentiation, and positioning. 2. Market segmentation involves dividing the market into subgroups based on geography, demographics, psychographics, and behaviors. The most popular bases are demographic and behavioral. 3. After segmentation, companies choose target markets and positioning strategies to best serve customer needs in a profitable way. Undifferentiated, differentiated, concentrated, and micro-marketing are 4 targeting strategies.

Uploaded by

Mai Hương Quỳnh
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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W3: Customer –driven marketing strategy

Check list:

 Define the four steps in designing customer driven marketing


strategy

 List, discuss and apply the major bases for segmenting consumer
markets: How would you describe the typical iPhone customer?

o Explain how companies choose market segments and target


marketing strategy: How do brands like Coke Zero decide who to sell
to and how to reach them?

Discuss how companies differentiate and position their products and


services: How is VietJet Air different to other airlines in Vietnam?

1. 4 steps in designing customer-driven strategy:


o A target market/customer segmentation changes over time!

STEP 1 STEP 3

STEP 4
STEP 2
o Marketers need to identify which is the most profitable and
suitable rpoduct at a specific period of time.

STEP 1: MARKET SEGMENTATION

o The process in which the company divides the market in smaller


segments in order to deliver products that match the customers’
needs more effective and efficient.

Based on geography
Several ways: city, rural, climate or total
Geographic
population
Easiest

Age, gender, family size, income, etc


Age and life-cycle stage segmentation: process of
Demographic offering different products/ marketing approaches
for different age and life-cycle groups.
Most popular

Psychographic Personality, lifestyle and social class.

Knowledge, attitudes, uses or responses to the


product
5 criterias: occasions (when they buy), benefits
Behavioural
sought (different benefits in same item), user status
(non-users, ex-users, potential, etc), usesage rate
(light, medium, heavy), loyalty status.
 Able to do all 4 things simulataneously in order to have a
more identified, better-defined groups.
o A segment is useful when:
Measurable

Size, purchasing power and profiles of


segments can be measured

Substantial

Segments are large and profitable enough to


serve

Accessible

Segments can be effectively reached and


served

Actionable

Effective programs can be designed for


attracting and serving segments

Differentiable

Conceptually distinguisable and respond


differently

STEP 2: MARKET TARGETING


o Target market: set of buyers who share common needs or
charateristics that the firm decideds to serve.
o Among various segments, firm has to decide how many and which
segments to serve best!
o 4 market targeting strategies:

Undifferentiated
Focus on what is in common in the need of customers
Target whole market with one onffer

Differentiated
Target several market segments and designs seperate offer for each

Concentrated (Niche)
Target a large market share of a small market
Suitable where only few competitors and firm has strong capability

Micro- marketing
Tailoring products and marketing programs to the needs and wants of specific individuals
and local customers

STEP 3 AND 4: DIFFERENTATION AND POSITIONING


o Product position: set of feelings, perceptions and impressions the
customers have on the products compared to competitors’ products.
a) How to position the brand?
o In order to prepare for positioning the brand, marketers often use
perceptual positioning map to identify the gaps and show
consumers perceptions about their product compared to
competitors’ on important criterias.

b) Choosing a differentiation and positioning strategy:


Identifying a set of
differentiating
Choosing the right Selecting an overall
competitive advantages
competitive advantages positioning strategy
upon which to build a
position

c) Identifying possible value differences and competitive advantages:


o Competitive advantage: adavtages gained by offering greater
customer values, either by low prices or more benefits that
justify a higher price.
o A company can differentiate along the lines of of product,
services, channels, people or image.

Product/Service differentiation
features, performance, style, design, superior services, etc.

Channel differentiation
speedy, convenient or careful deliver
Amazon.com, Netflix

People differentiation
hiring and training better people than competitors.
Singapore airlines vs Vietnam airlines

Image differentiation
convey the product’s distinctive benefits and positioning.
McDonald’s golden arches, Google’s colourful logo, etc.
d) Choosing the right competitve advantge:

Which differences to promote? A difference is worth establishing to the


extent that it satisfies the following criteria:

Distinctive Important Superior

Communicable Pre-emptive Affordable

Profitable

e) Selecting an overall positioning strategy:


o Value Proposition: The full positioning of a brand – the full mix
of benefits upon which it is positioned.
o Positioning statement: A statement that summarises company or
brand positioning – it takes this form: To (target segment and
need) our (brand) is (concept) that (point of difference).
o Once it has chosen a position, the company must take strong steps
to deliver and communicate the desired position to target
customers.
o All the company’s marketing mix efforts must support the
positioning strategy.

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