MKTG303 Tutorial Notes

Tutorial 3:

First Principle: All Customers Differ

 For most products & services customers vary widely on desires/needs
 Thus firms are targeting smaller and more niche segments

E.g. Godiva (Belgium)

 Developed different products for different consumers
 3 reasons to buy chocolate:
o To give to others
o To share with a group
o To eat by themselves
 Expanded product line to meet all those needs (individually wrapped candies for candy
dishes, fondue baskets for sharing with a group. Packaged candy bars for people to eat
themselves)

Input-Output Framework for Managing Customer Heterogeneity

 Three key inputs to the framework are required to conduct segmentation, targeting, and
positioning of potential customers
 The second and third inputs are similar, but one focuses on the focal company and the other
involves the company’s competitors
 The inputs to managing customer heterogeneity entail the 3C’s of situation analysis:
Customers, Company, and Competitors

Inputs (3Cs) -> Managing Customer Heterogeneity -> Outputs (STP)

Inputs (3Cs)

All potential customers:

 Needs
 Demographics
 Size, growth, perceptions

Your company:
 Strengths and weaknesses
 Opportunities and threats

Your competitors:
 Strengths and weaknesses
 Opportunities and threats

Managing customer heterogeneity

Approaches & processes:

 Segmenting, targeting, and positioning (STP)
 Perceptual/positional mas
 Customer-centric view

Analyses:
 Factor analysis
 Cluster analysis
 GE matrix
 Discriminant analysis
 Classification
 Outputs (STP)

Industry segmentation:
 Customer segments
 Needs, demographics, and opportunity of each segment

Target segment:
 Detailed needs, demographics, and value of target segment(s)
 Discriminant function
 Relative perceptions

Positioning statement:
 Who (demographics)?
 What needs/benefits?
 Why (relative advantage & support)?

Tutorial 7:

To the … (target audience) who need …, (brand name) … is the … (frame of reference) … (dramatic
difference), with the … (reason to believe).

e.g. To the well-travelled parent who needs international standard university education for his child,
PAU is the Nigerian Harvard with the curriculum, environment, ethics, and world-class scholars to
help make your child a global citizen.