Transcript CHAPTER 4 MANAGING MARKETING INFORMATION

CUSTOMER DRIVEN
MARKETING STRATEGY:
CREATING VALUE FOR
TARGET CUSTOMERS
• Nowadays, marketer can’t apply the same
strategies to all buyers.
• It is because the buyer are too numerous, too
widely scattered and too varied in their needs and
buying practices.
• So, marketers have to vary widely in their abilities
in serve different segment of the market.
• Thus, marketer need to change from mass market
into target market.
• There are 4 steps in designing the marketing
strategies.
STEPS IN DESIGNING STRATEGIES
Select customer to serve
SEGMENTATION
Divide the total market
into smaller segment
TARGETING
Target the segment to
enter
Decide on the value
proposition
DIFFERENTIATION
Differentiate the market
offer from competitor and
create superior value
POSITIONING
Position the market
offering in the minds of
target customers
MARKET SEGMENT
MARKET TARGET
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DIFFERENCIATION
POSITIONING
MARKET
SEGMENTATION
• Dividing A market into smaller group with distinct
needs, characteristic or behavior, who might
required separate product or marketing mixed.
• There are 2 broad groups of variables are used in
segmenting the peoples.
1. Segmenting consumer market
2. Segmenting business market
Segmenting Consumer Market
• Form segments by looking at consumer
characteristics
1. Geographic
2. Demographic
3. Psychographic
4. Behavior
1) GEOGRAPHIC
• Dividing a market into different geographical units
such as nations, states, regions, countries, cities or
neighborhood.
• A company may decide to operate in one or a few
geographical area.
• Some companies nowadays are localization their
product to fit the needs of individual region, cities
and neighborhood.
• Some companies are seeking to cultivate as-yet
untapped geographical territories.
2)Demographic
• Divided into groups on the basis of variables such
as age, family, size, life cycle, gender, income,
occupation, education, religion, race, generation,
nationality and social class.
• The most popular basis for distinguishing customer
groups.
• One reason is that consumer wants, preferences,
usage rates are often associated with demographic
variables.
• Another reason is that demographic variables are
easier to measure even when the target market is
defined in non-demographic terms.
1) Age and life cycle segmentation
• Divide a market into different age and life-cycle group.
2) Gender segmentation
• Divide a market into different groups based on gender.
• E.g. cloth, magazine, cosmetic
3) Income segmentation
• Divide a market into different income group.
• E.g. automobile, financial services, travelling
3. Psychographic
• Buyers are divided into different groups based on
personality and values.
• People within the same demographic group can
exhibit very different psychographic profiles such
as their Lifestyle, Personality & Values
4) Behavior
• Buyers are divided into groups on the basis of their
knowledge of, attitude toward, use of, or response to a
product
• Most of the company will divide the consumer based on
their occasional segmentation and benefit
segmentation.
• Occasional segmentation - divided into groups
according to occasions when the buyer get idea to buy.
• Benefit segmentation - divided into groups according to
the different benefits that the consumer seek from the
product.
MARKET
TARGETING
• Firm must evaluate the various segments and
select how many and which segment it can serve
the best
Firm must look at 3 factors;
1. Segment size and growth
2. Segment structural attractiveness
• The segment are less attractive if there are a lot of
strong and aggressive competitors, power of buyer and
powerful supplier.
3. Company objective and resources
Selecting Target Market Segment
• After evaluate different segment, company willl
target the segment to serve.
• Target market consist of set of buyer who share
common needs and characteristic that the
company decide to serve.
• Buyer have unique need and want, so marketer will
separate them in different segment.
• Market targeting can be carry out in several
different level.
Undifferentiated
(mass)
marketing
Differentiated
(segmented)
marketing
Concentrate
(niche)
marketing
Micromarketing
(local or
individual
marketing)
1) Undifferentiated (mass) marketing
• Broadly target the segmentation
• Market ignore the market segment differences and
target the whole market with one offer.
• Focus on common needs of consumer rather that it
different.
2) Differentiated (segmented) marketing
• Firm decide to target several market segment and
design separate offer for each segment.
• Company are able to get higher profit from each
segment.
• Separate segment required extra marketing
research, forecast, promoting and channel
management.
3) Concentrate (niche) marketing
• When company resources are limited
• Firm goes after a large share of one or a few
segment or niches.
• Firm will achieve strong position in market because
of greater knowledge of consumer needs in a
niches
• The segment are smaller and it may attract only
one or few competitor
• Firm can be get high profit and at the same time, it
involve high risk.
4) Micromarketing (local or individual marketing)
• Target very narrowly
• Practice of tailoring product and marketing
program to the needs and want of specific
individual and local customer group.
• Include local and individual marketing.
• Local marketing – tailor brand and promotion to
the need and want of local customer group (cities,
neighboorhood, demographic)
• Individual marketing - tailor brand and promotion
to the need and want of indiividual customer – also
known as “market of one market”, “customized
market” and “one to one marketing”
DIFFERENTIATION
AND
POSITIONING
DIFFERENTIATION
 Firm should offer the different product to each
segment.
 The product also need to different from the
competitor.
POSITIONING
 The way to make sure, the product is define by
consumer on important characteristic.
 The place where the product occupied in
consumer’s mind relative to competing product.
SWOT
 A method, or model is a way to analyze
competitive position of your company.
 SWOT analysis uses so-called SWOT matrix to
assess both internal and external aspects of
doing your business.
 The SWOT framework is a tool for auditing an
organization and its environment.
 Is the first stage of planning and helps decision
makers to focus on key issues.
 SWOT method is a key tool for company top
officials to formulate strategic plans.
 SWOT model analyzes
factors that are internal to
your business and also
factors that affect your
company from outside.
 Strengths and
weaknesses in the SWOT
matrix are internal
factors.
 Opportunities and threats
are external factors.
STRENGTHS AND WEAKNESSES
• Strengths and weaknesses are internal value
creating (or destroying) factors that can be control
such as assets, skills, or resources a company has at
its disposal relatively to its competitors.
• Below you can find a few examples of what your
strengths might be:
 Unique product
 Location of your business
 Patents, know-how, trade secrets
 Worker's unique skill set
 Corporate culture, company image
 Quality of your product
 Access to financing
 Operational efficiency
The following list shows a few examples of
weaknesses:
Location of your business
Lack of quality and customer service
Poor marketing and sales
Access to resources
Undifferentiated products or services
OPPORTUNITIES AND THREATS
 Opportunities and threats are external value
creating (or destroying) factors a company
cannot control but emerge from either the
competitive dynamics of the industry or market
or from demographic, economic, political,
technical, social, legal, or cultural factors.
An opportunity in the SWOT model could be for
example:
 A new emerging or developing market (niche
product, place - new country, less competition)
 Merger, joint venture, or strategic alliance
 Market trends
 New technologies
 Social changes (for example demographics)
 New competition in the market, possibly with new
products or New competition in the market, possibly
with new products or services
 Example of threat could be:
 Price wars
 Economic conditions
 Political changes
 Competitor oligopoly or monopoly
 Taxation
 Availability of resources
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