Customer value – Driven

marketing strategies
Chapter - 7
RECAPE
What Is Marketing?
The Marketing Process

Copyright © 2016 Pearson Education, Inc. 1-3

Marketing strategy and marketing mix
Chapter-3
Managing the marketing efforts

• Managing the marketing process requires five marketing

management functions
Chapter-4
1. Marketing information and customer insight
2. Assessing information needs and developing data
3. Marketing research
4. Analyzing and using marketing information
5. Other marketing information considerations
Chapter-5
• Model of consumer behavior
• Characteristics affecting consumer buying behavior
• Buying decision behavior and buying decision process
• The buyer decision process for new product
Chapter-5: Consumer buying behavior
• Business deals with two consumers/markets
• Business market (chapter-6)
• Consumer market (chapter-5)
• Consumer buyer behavior refers to the buying behavior of final
consumers—individuals and households that buy goods and services
for personal consumption. All of these final consumers combine to
make up the consumer market
 Chapter-7
Customer value – Driven
marketing strategies
Marketing strategy and marketing mix
To be covered in the chapter
• Marketing strategy
• Market segmentation
• Market targeting
• Differentiation and positioning
1. Marketing strategy
1. Marketing strategies
• Market segmentation – Dividing a market into distinct groups of
buyers who have different needs, characteristics, or behaviors and
who might require separate marketing strategies or mixes
• Market targeting (targeting) – Evaluating each market segment’s
attractiveness and selecting one or more segments to serve.
• Differentiation – Actually differentiating the market offering to create
superior customer value.
• Positioning – Arranging for a market offering to occupy a clear,
distinctive, and desirable place relative to competing products in the
minds of target consumers.
2. Market segmentations – segmenting
markets
2. Market segmentations – segmenting
markets
• Segmenting business markets
• customer operating characteristics, purchasing approaches, situational
factors, and personal characteristics.
• Segmenting international markets
• Intermarket (cross-market) segmentation
2. Market Segmentation
Requirements for Effective Segmentation
To be useful, market segments must be:

Measurable Accessible

Substantial Differentiable

Actionable
3. Market targeting – evaluating market
segments
• Not every segment of the market may be covered by the company, so
the segments should be evaluated for:
• segment size and growth,
• segment structural attractiveness, and
• company objectives and resources
3. Market targeting – selecting target market
segments
3. Market targeting – selecting target market
segments
• Target market – A set of buyers who share common needs or characteristics that a
company decides to serve.
• Undifferentiated (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.
• Differentiated (segmented) Marketing – A market-coverage strategy in which a
firm targets several market segments and designs separate offers for each.
• Concentrated (niche) marketing – A market-coverage strategy in which a firm goes
after a large share of one or a few segments or niches.
• Micromarketing – Tailoring products and marketing programs to the needs and
wants of specific individuals and local customer segments; it includes local
marketing and individual marketing.
• Local marketing – Tailoring brands and marketing to the needs and wants of local customer
segments—cities, neighborhoods, and even specific stores.
• Individual marketing – Tailoring products and marketing programs to the needs and
preferences of individual customers.
4. Differentiating & Positioning
• Product position - The way a product is defined by consumers on
important attributes—the place it occupies in consumers’ minds
relative to competing products
4. Differentiating & Positioning – positioning
maps
4. Differentiating & Positioning – choosing a
differentiation and positioning strategy
• Identifying Possible Value Differences and Competitive Advantages
• Competitive advantage – An advantage over competitors gained by offering greater
customer value either by having lower prices or providing more benefits that justify
higher prices.
• Product, service, channel, people, image differentiation
• Choosing the Right Competitive Advantages
• How many differences to promote?
• Which differences to promote?
• Selecting an Overall Positioning Strategy
• Value proposition - The full positioning of a brand—the full mix of benefits on which
it is positioned.
• Developing a Positioning Statement
• A statement that summarizes company or brand positioning using this form: To
(target segment and need) our (brand) is (concept) that (point of difference).
Differentiation and Positioning
Choosing the Right Competitive Advantage

Difference to promote should be:

Important Distinctive Superior

Communicable Preemptive Affordable

Profitable
4. Differentiating & Positioning – choosing a
differentiation and positioning strategy
• Identifying Possible Value Differences and Competitive Advantages
• Choosing the Right Competitive Advantages
• Selecting an Overall Positioning Strategy
• Value proposition - The full positioning of a brand—the full mix of benefits on
which it is positioned.
4. Differentiating & Positioning – communicating
and delivering the chosen position
• Product, price, place, and promotion (Marketing mix)—involves
working out the tactical details of the positioning strategy.
Group assignment (weightage - 10%)
• Prepare a report covering following chapters:
1. Pakistan auto industry before and after auto policy (2016-21)
2. Products offered by each company (existing and new entrant)
3. Now select one new entrant (each group – would be assigned by CR) and identify
their target market, target segment and differentiation & positioning strategy
• Prepare a comprehensive report covering aforementioned three chapters
• Also write an executive summary of the report and bibliography chapter as
well
• Suggested sources (websites, specialized websites, newspapers, Youtube
videos and magazines)
• Use numeric referencing style to put in-text citation and referencing
• Submission deadline May 13, 2021
Assignment
• Pakistan auto industry before and after auto policy
There are two forms of investment policies offered by Auto Development Policy
(ADP, 2016-21) namely brown field and green field investments. Brown field
investment covers revival of a sick or dead unit and producing vehicles with the
agreement with the original foreign vehicle brand1.
Lower the entry threshold for New Investment (Two categories namely Greenfield
Investment i-e. the installation of new and independent automotive assembly and
manufacturing facilities by an investor for the production of vehicles of a make not
already being assembled / manufactured in Pakistan and Brownfield Investment i-e.
revival of an existing assembly and / or manufacturing facilities, that is non-
operational or closed on or before July 1, 2013 and the make is not in production in
Pakistan since that date and that the revival is undertaken either independently by
original owners or new investors or under joint venture agreement with foreign
principal or by foreign principal independently through purchase of plant).
Bibliography
1. https://invest.gov.pk/auto-development-policy, accessed on May 1,
2021.