chapter 7 marketing, ibne ali jafrai

7/28/2019 Chapter 7 Marketing, ibne ali jafrai

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CUSTOMER-DRIVEN MARKETING STRATEGY

CHAPTER # 7 Page 1

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 offerII. 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 market-

coverage 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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CHAPTER # 7 Page 2

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, customizedmarketing & 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


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CHAPTER # 7 Page 3

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

Moreformore

Morefor thesame

Moreforless

Thesame forless

Lessformuch less

chapter 7 marketing, ibne ali jafrai

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