CUSTOMER-DRIVEN MARKETING STRATEGY

Market Segmentation: Dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes Market targeting: The process of evaluating each market segments attractiveness & selecting one or more segments to enter Positioning: Arranging for a market offering to occupy a clear, distinctive, & desirable place relative to competing products in the mind of the targeting consumers BASES OF SEGMENTATION/ SEGMENTING CONSUMER MARKET: Geographical Segmentation Demographical Segmentation Psychographic Segmentation Behavioral Segmentation 1. Geographical Segmentation: Dividing a market into different geographical units such as nations, regions, states, countries, provinces, cities or even neighbors 2. Demographical Segmentation: Dividing the markets into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. 3. Psychographic Segmentation: Dividing a market into different groups based on social class, life style, or personality characteristics. 4. Behavioral Segmentation: Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product. SELECTING TARGET MARKET SEGMENTS: TARGET MARKET: A set of buyers sharing common needs or characteristics that the company decides to serve Undifferentiated (Mass) Market Segmentation Differentiated Market Segmentation Niche Market/ Concentrated Market Segmentation Micro-Market Segmentation I. Undifferentiated market segmentation: A market-coverage strategy in which a firm decides to ignore market segment differences & go after the whole market with one offer II. Differentiated Market Segmentation: A market-coverage strategy in which a firm decides to target several market segments & designs separate offers for each III. Niche Market/ Concentrated Market Segmentation: A marketcoverage strategy in which a firm goes after a large share of one or a few segments or niches IV. Micro-Market Segmentation: The practice of tailoring products & marketing programs to the needs and wants of specific individuals & local customer groups_ includes

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Local market: Tailoring brands & promotions to the needs and wants of local customer groups_ cities, neighborhood or even specific stores Individual market/ tailored market: Tailoring products & marketing programs to the needs and preferences of individual customers_ also labeled one-to-one marketing, customized marketing & markets-of-one marketing SEGMENTING BUSINESS MARKETS: 1) Psychographic segmentation 2) Behavioral segmentation 3) Occasion segmentation 4) Benefit segmentation Psychographic segmentation: Dividing a market into different groups based on social class, lifestyle, or personality characteristics. Behavioral segmentation: Dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product. Occasion segmentation: Dividing a market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or used the purchased item. Benefit segmentation: Dividing a market into groups according to the different benefits that consumers seek from the product. DIFFERENTIATION AND POSITIONING/ POSITIONING FOR COMPETITIVE STRATEGY: i. Choosing a differentiation & positioning strategy for competitive advantage ii. Choosing the possible competitive advantage iii. Choosing a overall strategy for positioning iv. Developing a positioning statement Choosing a differentiation & positioning strategy for competitive advantage: The way the product is defined by consumers on important attributes_ the place the product occupies in consumers minds relative to competing product Choosing he possible competitive advantage: An advantage over competitors gained by offering greater customer value, either through low prices or by providing more benefits that justify higher price Choosing a overall strategy for positioning: The full positioning of a brand_ the full mix of benefits upon which it is positioned. It must choose/decide by the company on which it will build its positioning strategy. How many differences to promote? Which differences to promote? A difference is worth establishing to the extent that it satisfies the following criteria: Important Distinctive CHAPTER # 7 Page 2

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Superior Communicable Preemptive Affordable Profitable Developing a positioning statement: A statement that summarizes company or brand positioning_ it takes these forms: More for same The same for less Less for much less More for less More for more

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More for less The same for less Less for much less

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