SLIDE principles of marketing chapter 4

LEARNING OBJECTIVES P  Define the major steps in designing a customer value–driven marketing strategy: market segmentation, targeting, differentiation, and positioning  List and discuss the major bases for segmenting consumer and business markets  Explain how companies identify attractive market segments and choose a market-targeting strategy  Discuss how companies differentiate and position their products for maximum competitive advantage MARKETING STRATEGY P  Marketing strategy  The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships  Development of marketing strategy Mass marketing Product-variety marketing Target marketing CUSTOMER VALUE–DRIVEN MARKETING STRATEGY P CUSTOMER VALUE–DRIVEN MARKETING STRATEGY Decide on a value proposition Select customers to serve Segmentation Divide the total market into smaller segments Targeting Select the segment or segments to enter Create value for targeted customers Differentiation Differentiate the market offering to create superior customer value Positioning Position the market offering in the minds of target customers MARKET SEGMENTATION P  Market segmentation  divide large, diverse markets into smaller, more defined segments  who have different needs, characteristics, or behaviors  who might require separate marketing strategies or mixes P MARKET SEGMENTATION  Market segment  A group of buyers that share similar characteristics such as demographics, interests, needs, or location or similar behavioral responses to marketing programs Yomost Enfamama Enfa grow Enlene SEGMENTATION VARIABLES P Segmentation variables Geographic Demographic Psychographic Behavioral GEOGRAPHIC SEGMENTATION  Geographic segmentation  Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods  Examples: • Nations • Regions/Cities • Neighborhoods • Population size • Population density (urban, suburban, rural) • Climate P DEMOGRAPHIC SEGMENTATAION  Demographic segmentation  Dividing the market into segments based on variables such as: • Age  Education • Life-cycle stage  Religion • Gender  Ethnicity • Occupation  Generation • Income  Nationality P DEMOGRAPHIC SEGMENTATAION  Age and life-cycle stage  Toys, food, consumer products, clothing, etc  Gender  Clothing, cosmetics, toiletries, toys, magazines, etc  Income  Automobiles, clothing, cosmetics, financial services, travel, etc  Occupation 10 P P MARKET TARGETING  Selecting Target Market Segments Undifferentiated (mass) marketing Targeting broadly 21 Differentiated (segmented) marketing Concentrated (niche) marketing Micromarketing (local or individual marketing) Targeting narrowly MARKET TARGETING  Undifferentiated marketing (or mass marketing) P  A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer  Focus on what is common in the needs of consumers rather than on what is different Marketing mix 22 The whole market MARKET TARGETING  Differentiated marketing (or segmented marketing)  A market-coverage strategy in which a firm targets several market segments and designs separate offers for each 23 Marketing mix Segment Marketing mix Segment Marketing mix Segment P P MARKET TARGETING  Concentrated marketing (or niche marketing)  A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches Phối thức marketing Marketing mix Phối thức marketing 24 Segment Segment (Target market) Segment MARKET TARGETING  Micromarketing  Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes: • local marketing • individual marketing 25 P P MARKET TARGETING  Choosing a Targeting Strategy Niche marketing Company resources Product variability Product life-cycle stage Market variability Competitors’ marketing strategies Limited Substantial Low High Introduction Maturity Low High Undifferentiated Differentiated 26 Mass marketing Differentiated marketing DIFFERENTIATION & POSITIONING  Differentiation  The process companies use to make a product or service stand out from its competitors in ways that provide unique value to the customer  Product position  The way a product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products 27 Product’s position Perceptions Impressions Feelings P DIFFERENTIATION AND POSITIONING STRATEGY  Perceptual positioning map  Show consumer perceptions of their brands versus competing products on important buying dimensions  Help marketers in coming up with the appropriate positioning strategy, which may involve developing new competitive advantages or optimizing existing ones 28 P DIFFERENTIATION AND POSITIONING STRATEGY P  The differentiation and positioning task consists of: Identify a set of differentiating competitive advantages 29 Choose the right competitive advantages Select an overall positioning strategy Develop and communicate a positioning statement DIFFERENTIATION AND POSITIONING STRATEGY  Identifying possible value differences and competitive advantages  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  Points of differentiation: Product differentiation: features, performance, or style and design Services differentiation: speedy, convenient, high-quality service Channel differentiation: coverage, expertise, and performance People differentiation: hiring and training human resources Image differentiation: logo, endorsers, colors, symbols, characters, etc 30 P DIFFERENTIATION AND POSITIONING STRATEGY  Choosing the right competitive advantage  Difference to promote should be: Important: The difference delivers a highly valued benefit to target buyers Distinctive: Competitors not offer the difference, or the company can offer it in a more distinctive way Superior: The difference is superior to other ways that customers might obtain the same benefit Communicable: The difference is communicable and visible to buyers Preemptive: Competitors cannot easily copy the difference Affordable: Buyers can afford to pay for the difference Profitable: The company can introduce the difference profitably 31 P DIFFERENTIATION AND POSITIONING STRATEGY  Selecting an overall positioning strategy BENEFITS PRICE More The same Less 32 More The same Less More for more More for the same More for less The same for less Less for much less P DIFFERENTIATION AND POSITIONING STRATEGY P  Developing a positioning statement  Positioning statement • A statement that summarizes company or brand positioning  Structure: To [TARGET SEGMENT AND NEED], our [BRAND] is [CONCEPT] that [POINT OF DIFFERENCE] “To busy multi-taskers who need help remembering things, Evernote is a digital content management application that makes it easy to capture and remember moments and ideas from your everyday life using your computer, phone, tablet, and the web.” 33 DIFFERENTIATION AND POSITIONING STRATEGY  Communicating and delivering the chosen position  Take strong steps to deliver and communicate the desired position to its target consumers  All the company’s marketing mix efforts must support the positioning strategy  Involve working out the tactical details of the positioning strategy P MARKETING MIX Tangible products  Price  Place  Product  Promotion Services  Process  Physical Evidence  People 34 FINAL GROUP ASSIGNMENT P  Outline (to be continued) INTRODUCTION • About the company and its product lines/product portfolio • About the brand MARKETING ENVIRONMENT ANALYSIS • Micro-environment • Macro-environment SWOT TARGET MARKETING STRATEGY • Market segmentation: Analyse segmentation bases the company uses to segment its market • Identify the company’s targeting strategy and describe the characteristics of its target market segment(s) • Positioning: Specify the company’s competitive advantages and its positioning statements 35 ... advantage MARKETING STRATEGY P  Marketing strategy  The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships  Development of marketing. .. segments and designs separate offers for each 23 Marketing mix Segment Marketing mix Segment Marketing mix Segment P P MARKET TARGETING  Concentrated marketing (or niche marketing)  A market-coverage... after a large share of one or a few segments or niches Phối thức marketing Marketing mix Phối thức marketing 24 Segment Segment (Target market) Segment MARKET TARGETING  Micromarketing  Tailoring