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Chapter #7
1.
Chapter 7- slide
1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Customer-Driven Marketing Strategy Creating Value for Target Customers
2.
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2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Customer-Driven Marketing Strategy: Creating Value for Target Customers • Customer-Driven Marketing Strategy • Market Segmentation • Market Targeting • Differentiation and Positioning Topic Outline
3.
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3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Market Segmentation
4.
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4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Segmenting consumer markets • Segmenting business markets • Segmenting international markets • Requirements for effective segmentation Market Segmentation
5.
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5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation Segmenting Consumer Markets
6.
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6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities Segmenting Consumer Markets
7.
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7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation 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 Segmenting Consumer Markets
8.
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8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life- cycle groups Gender segmentation divides the market based on sex (male or female)
9.
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9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation Income segmentation divides the market into affluent or low-income consumers Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits Segmenting Consumer Markets
10.
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10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation 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 Segmenting Consumer Markets
11.
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11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation Multiple segmentation is used to identify smaller, better-defined target groups Geodemographic segmentation is an example of multivariable segmentation that divides groups into consumer lifestyle patterns Using Multiple Segmentation Bases
12.
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12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation • PRIZM NE classifies every American household into 66 unique segments organized into 14 different social groups • These groups segment people and locations into marketable groups of like- minded consumers that exhibit unique characteristics and buying behavior based on a host of demographic factors Using Multiple Segmentation Bases
13.
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13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation Segmenting International markets
14.
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14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation Intermarket segmentation divides consumers into groups with similar needs and buying behaviors even though they are located in different countries Segmenting Business Markets
15.
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15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Segmentation To be useful, market segments must be: Requirements for Effective Segmentation
16.
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16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting • Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve Selecting Target Market Segments
17.
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17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting • Segment size and growth • Segment structural attractiveness • Company objectives and resources Evaluating Market Segments .
18.
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18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting Undifferentiated marketing targets the whole market with one offer –Mass marketing –Focuses on common needs rather than what’s different Target Marketing Strategies
19.
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19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting Differentiated marketing targets several different market segments and designs separate offers for each • Goal is to achieve higher sales and stronger position • More expensive than undifferentiated marketing Target Marketing Strategies
20.
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20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting • Concentrated marketing targets a small share of a large market • Limited company resources • Knowledge of the market • More effective and efficient Target Market Strategies
21.
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21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketing Targeting Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations • Local marketing • Individual marketing Target Market Strategies
22.
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22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups • Cities • Neighborhoods • Stores Target Market Strategies
23.
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23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers • Also known as: – One-to-one marketing – Mass customization – Markets-of-one marketing Target Market Strategies
24.
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24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting Depends on: • Company resources • Product variability • Product life-cycle stage • Market variability • Competitor’s marketing strategies Choosing a Targeting Strategy
25.
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25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Market Targeting • Benefits customers with specific needs • Concern for vulnerable segments • Children – Alcohol – Cigarettes – Internet abuses Socially Responsible Target Marketing
26.
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26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Product position is the way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products – Perceptions – Impressions – Feelings Differentiation and Positioning
27.
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27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions Differentiation and Positioning
28.
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28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Differentiation and Positioning • Identifying a set of possible competitive advantages to build a position • Choosing the right competitive advantages • Selecting an overall positioning strategy • Developing a positioning statement Choosing a Differentiation and Positioning Strategy
29.
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29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Differentiation and Positioning Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices Identifying Possible Value Differences and Competitive Advantages
30.
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30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Differentiation and Positioning Identifying a set of possible competitive advantages to build a position by providing superior value from: Choosing a Differentiation and Positioning Strategy
31.
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31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Differentiation and Positioning Difference to promote should be: Choosing the Right Competitive Advantage
32.
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32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Differentiation and Positioning • Value proposition is the full mix of benefits upon which a brand is positioned Selecting an Overall Positioning Strategy
33.
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33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Differentiation and Positioning • To (target segment and need) our (brand) is (concept) that (point of difference) Developing a Positioning Statement
34.
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34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall • Choosing the positioning is often easier than implementing the position. Communication and Delivering the Chosen Position
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