Customer-Driven Marketing Strategy:

Creating Value for Target Customers

1 © 2012 Principles of Marketing: An Asian Perspective

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 7.1
Market Segmentation

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7.1
© 2012 Principles of Marketing: An Asian Perspective
 7.1 Market Segmentation

Steps in Market Segmentation, Targeting and Positioning

3 © 2012 Principles of Marketing: An Asian Perspective

Unilever in Vietnam

Why would Unilever introduce several brands

in one category instead of concentrating its
resources on a single brand?

7-4
Market Segmentation

is the process that companies use to divide large heterogeneous

markets into small markets that can be reached more efficiently and
effectively with products and services that match their unique needs

7-5
 Market Segmentation

Geographic Demographic
segmentation segmentation

Behavioral
Psychographic
segmentatio
segmentation
n

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 Geographic Segmentation

 Why does Coca Cola have

different bottles/can designs in
some countries?

 Why is Coca Cola sweeter or

less sweet in some countries?

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 Demographic Segmentation

Divides the market into groups

based on variables such as age,
gender, family size, family life
cycle, income, occupation,
education, religion, race,
generation, and nationality.

Demographic factors are the most popular bases

for segmenting customer groups.

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 Demographic Segmentation

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 Market Segmentation

Psychographics Segmentation
Divides buyers into different groups based on
lifestyle or personality characteristics.

Marketers also use personality variables to

segment markets.

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 Psychographic segmentation

iPod Silhouette Campaign

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 Behavioural Segmentation

Occasion

Benefit

User status

Usage rate

Loyalty

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 7.1 Market Segmentation

Behavioral Segmentation

Occasion segmentation means grouping buyers according to

occasions when they get the idea to buy, actually make their
purchase, or use the purchased item.
 
Benefit segmentation means grouping buyers according to the
different benefits that they seek from the product.

13 © 2012 Principles of Marketing: An Asian Perspective

 7.1 Market Segmentation

Behavioral Segmentation

User Status means segmenting markets into nonusers, ex-users,

potential users, first-time users, and regular users of a product.

Usage Rate means grouping markets into light, medium, and heavy
product users.
 
Loyalty Status means dividing buyers into groups according to their
degree of loyalty.

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 Different usage of OMO: Behavioural

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 7.1 Market Segmentation

Useful segments are...

16 © 2012 Principles of Marketing: An Asian Perspective

 7.1 Market Segmentation

Measurable
Measurable: The size, purchasing power, and profiles of the
segments can be measured.

17 © 2012 Principles of Marketing: An Asian Perspective

 7.1 Market Segmentation

Substantial
Substantial: The market segments are large or profitable enough
to serve.

18 © 2012 Principles of Marketing: An Asian Perspective

 7.1 Market Segmentation

Accessible

Accessible: The market segments can be effectively reached and

served.

19 © 2012 Principles of Marketing: An Asian Perspective

 7.1 Market Segmentation

Actionable

Actionable: Effective programs can be designed for attracting and

serving the segments.

20 © 2012 Principles of Marketing: An Asian Perspective

 7.1 Market Segmentation

Differentiable

Differentiable: The segments are conceptually distinguishable and

respond differently to different marketing mix elements and
programs.

21 © 2012 Principles of Marketing: An Asian Perspective

 Identify as many segments for this
shampoo product

Geographic Demographics Psychographics Behavioural

Segment 1 - location? - age, gender? - personality? - occasion?

etc. etc. etc. benefits sought?
etc.

Segment 2

7-22
Age: 15 – 18 • Age: 25 – 30 • Woman aged 35 -
Studying in high • Working 45
school • High purchasing • Working or stay at
power home mom
Interested in a low
• Single or married • Has children aged
maintenance look
but no children over 5
Washes hair 5 times
• Busy lifestyle • Buys products for
a week the whole family
(work and social
Price sensitive (no life) • Is price conscious
income, only pocket • Loves to go out but also cares
money) about quality
• Very conscious
• Has to manage the
about how she
looks needs of all family
members
7-23
• Cares about quality
Age: 21 – 30 • Owners or • Mums with young
Working Managers of hair children aged 0 – 5
saloons or Hair • Family has middle
Interested in looking stylists to high income ( 21
good • High purchasing mill VND or above)
Fashion and image power • Looking for gentle
conscious • Will buy products products for
Has high disposable based on customer children
income needs (so high • Care very much
quality products as about ingredients
Very active social life
well as day to day and quality of the
Has different products) product
products for different • Needs to buy • Not price sensitive
occasions frequently and in and can be very
large amount brand loyal
Copyr7-24
ight
 7.2
Market Targeting

7.2
25 © 2012 Principles of Marketing: An Asian Perspective
 7.2 Market Targeting

Target market
A target market consists of a set of buyers who share common
needs or characteristics that the company decides to serve.

26 © 2012 Principles of Marketing: An Asian Perspective

Who will you choose to sell to?
 7.2 Market Targeting

Target Marketing Strategies

28 © 2012 Principles of Marketing: An Asian Perspective

 Targeting

Undifferentiated Marketing

MARKETING MIX Whole market

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You choose to sell the same product to all segments

Same
shampoo for
all with no
modifications
 Targeting

Using Differentiated marketing) strategy, a firm decides to target

several market segments and designs separate offers for each.

MARKETING MIX 1 Segment 1

MARKETING MIX 2 Segment 2

MARKETING MIX 3 Segment 3

MARKETING MIX 4 Segment 4

31 RMIT University MKTG 1199 Marketing Principles

Differentiated marketing – Colgate and
L’Oréal target different market
segments with different types of
products.
You choose to sell to all or many segments but you modify the
product to fit the needs of each segment
Natural ingredients
for high shine.
Higher priced as
Shampoo for well. Gives polished
everyday use look
for women

Men’s shampoo,
gives rich shine
and easy to style
Mild shampoo
Suitable for
children

Shampoos for
coloured hair,
Unisex
everyday use,
shampoos, for
styling, bigger
everyday use
bottles
 Is this better than undifferentiated
marketing?

How is this better than undifferentiated

marketing?
 Targeting
Concentrated Marketing
Or Niche Marketing Segment 3

Segment
Segment 22

MARKETING MIX Segment 1

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 You choose to focus on 1 or a few small segments

Focus on 1 or
a few small
segments

7-36
How is this different from
differentiated marketing?
 Targeting

Micro Marketing is the practice of tailoring products and marketing

programs to suit the tastes of specific individuals and locations.

Local marketing Individual marketing is

the

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 Personalized
laptop skin

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 Make your own shampoo

Each customer can choose different ingredients,

flavours, add their name to the packaging etc
 7.3
Differentiation and Positioning

7.3
41 © 2012 Principles of Marketing: An Asian Perspective
 Steps in Market Segmentation, Targeting,
Differentiation and Positioning

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 What do you think of these brands? What is
your perception?

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 Positioning

Positioning: A market offering occupying a:

Clear, distinctive, and desirable place relative to competing products in

the minds of target consumers.

A product’s position is the way the product is defined by consumers

on important attributes.

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 How to Position the brand?

multifunctional

Positioning Map

Perceptual positioning
maps show consumer
perceptions of their brands
versus competing products classic fashionable

on important buying
dimensions.

Identify the gaps

specialized

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 Differentiation and Positioning
Choosing a differentiation and positioning Strategy

IDENTIFY COMPETITIVE
ADVANTAGES
Differentiation

CHOOSE RIGHT COMPETITIVE

ADVANTAGE

SELECT POSITIONING STRATEGY

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 Differentiation
What is competitive advantage?

The extent that a company can differentiate and position itself as

providing superior customer value
Differentiation could be based on:

PRODUCT SERVICES PEOPLE

DISTRIBUTION IMAGE
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 Product Differentiation: Sony Xperia Z

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Service Differentiation

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People Differentiation

Cathay Pacific chairman John Slosar stated:

"I believe that the Cathay Pacific team is the
best and it is fantastic to see that our
passengers see it the same way.
"I would certainly like to congratulate our
cabin crew and everyone else in the Cathay
Pacific team who make our award-winning
service happen each and every day."

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Channel Differentiation

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Image Differentiation

RMIT University©03/07/2020 52
 Differentiation and Positioning
Choosing the Right Competitive Advantages

1. How Many Differences to Promote?

A company should develop a unique selling proposition (USP) for

each brand and stick to it.

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 Differentiation and Positioning

Possible Value propositions

Value proposition

How a company will

create:

 Differentiated value for

targeted segments

 and what positions it

wants to occupy in
those segments.
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Summary

To create Customer driven strategies :

1. Segment the market
2. Choose your target customer
3. Identify the gaps
4. Differentiate your product from the competitors
5. Offer customers a value proposition
6. Position the product in the customers

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Thank you