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Chapter Seven: Customer Value-Driven Marketing Strategy Creating Value For Target Customers
Chapter Seven: Customer Value-Driven Marketing Strategy Creating Value For Target Customers
Customer Value-Driven
Marketing Strategy
Creating Value for Target
Customers
Copyright © 2009 Pearson Education, Inc.
Chapter 7- slide 1
Publishing as Prentice Hall
Customer-Driven Marketing Strategy:
Creating Value for Target Customers
Topic Outline
• Customer-Driven Marketing
Strategy
• Market Segmentation
• Market Targeting
• Differentiation and Positioning
Geographic
segmentation
divides the market
into different
geographical units
such as nations,
regions, states,
counties, or cities
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 7
Publishing as Prentice Hall
Market Segmentation
Segmenting Consumer Markets
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
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 8
Publishing as Prentice Hall
Market Segmentation
Demographic segmentation
Video cameras
are often
purchased by
young couples
with children.
.
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 10
Publishing as Prentice Hall
Market Segmentation
Segmenting Consumer Markets
Behavioral segmentation
divides buyers into groups
based on their knowledge,
attitudes, uses, or
responses to a product
• Occasions
• Benefits sought
• User status
• Usage rate
• Loyalty status
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 13
Publishing as Prentice Hall
Ryka produces
sneakers that
meet the special
needs of
women’s feet.
Geodemographic segmentation is an
example of multivariable segmentation
that divides groups into consumer
lifestyle patterns
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 15
Publishing as Prentice Hall
Market Segmentation
Segmenting International markets
Geographic location
It is the grouping countries by regions such
as Western Europe, South Asia or Africa.
Economic factors
Countries might be grouped by population,
income levels, or by their overall level of
economic development
Political-legal factors
It is based on type and stability of
government, accessibility to foreign firms,
monetary regulations and amount of
bureaucracy.
Cultural factors
It can also be used grouping markets
according to common language, religions,
values and attitudes, customs and
behavioral patterns
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 18
Publishing as Prentice Hall
Market Segmentation
Segmenting Business Markets
Measurable
Measurable • Size, purchasing power, profiles
of segments can be measured.
Accessible
Accessible • Segments must be effectively
reached and served.
Substantial
Substantial • Segments must be large or
profitable enough to serve.
Differential
Differential • Segments must respond
differently to different marketing mix
elements & actions.
Actionable
Actionable • Must be able to attract and serve
the segments.
A. Undifferentiated Marketing
Company
Company
Marketing Segment
Segment11
MarketingMix
Mix11
Company
Company Segment
Segment22
Marketing
MarketingMix
Mix22
Company
Company Segment
Segment33
Marketing
MarketingMix
Mix33
B. Differentiated Marketing
Segment
Segment11
Company
Company
Marketing
Marketing Segment
Mix Segment22
Mix
Segment
Segment33
C. Concentrated Marketing
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 24
Publishing as Prentice Hall
Market Segmentation
Levels of Market Segmentation
Mass
Mass Marketing
Marketing
Same
Sameproduct
productto
toall
allconsumers
consumerse.g
e.gTelecom
TelecomIndustry,
Industry,Coca
Cocacola
cola
(no
(nosegmentation)
segmentation)
Segment
Segment Marketing
Marketing
Different
Differentproducts
productsto
toone
oneor
ormore
moresegments
segmentse.g
e.gUnilever,
Unilever,Nestle
Nestle
(some
(somesegmentation)
segmentation)
Niche
Niche Marketing
Marketing
Different
Differentproducts
productsto
tosubgroups
subgroupswithin
withinsegments
segmentse.g
e.glefties
lefties
((more
moresegmentation)
segmentation)
Micromarketing
Micromarketing
Products
Productsto
tosuit
suitthe
thetastes
tastesof
ofindividuals
individualsor
orlocations
locations
(complete
(completesegmentation)
segmentation)
Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 25
Publishing as Prentice Hall
Market Targeting
Target Marketing Strategies
Depends on:
• Company resources
• Product variability
• Product life-cycle stage
• Market variability
• Competitor’s marketing strategies
• One or More?