Summary Chapter Customer-driven Marketing Strategy Essay Example

lifestyle, or personality traits. 4. Behavioral segmentation divides buyers Into groups based on their knowledge, attitudes, uses, or responses to a product. Occasion segmentation Is grouping buyers according to occasions when they get the idea to buy, actually make their purchase, or use the purchased item.

Benefit segmentation is grouping buyers according to the different benefits that they seek from the product. User Status is segmenting markets into nonusers, ex-users, potential users, first-time users, and regular users of a product. Usage Rate is grouping markets into light, medium, and heavy product loyalty. Segmentation by business : Companies can segment international markets using one or a combination of several variables. Geographic factors: Nations close to one another will have many common raids and behaviors.

Economic factors: Population income levels and overall level of economic development Political and legal factors: Type and stability of government, receptivity to foreign firms, monetary regulations, and the amount of bureaucracy Cultural factors: Common languages, religions, values and attitudes, customs, and behavioral patterns. Evaluate Market Segments Just because a marketer identifies a segment does not necessarily mean that it's a useful one to target. Measurable: The size, purchasing power, and profiles of the segments can be measured. Substantial:

The market segments are large or profitable enough to serve. Is the market large enough to make a profit? Marketers need to be careful because there is often heavy competition for the larger segments. Accessible: The market segments can be effectively reached and served. Is the segment accessible with media in an efficient manner. For example, brides are an accessible segment because of the many bridal magazines. There are few media vehicles targeted at

men getting married, so their accessibility is poor. Actionable: Effective programs can be designed for attracting and serving the segments.

Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Evaluating Segments In evaluating different market segments, a firm must look at three factors: Segment size and growth Segment structural attractiveness, and Company objectives and resources. The largest, fastest-growing segments are not always the most attractive ones for every company. The company also needs to examine major structural factors that affect long-run segment attractiveness. A segment is less attractive if it already contains many strong and aggressive monitors.

Micromanaging is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations. It includes local marketing and individual marketing. Local marketing involves tailoring brands and promotions to the needs and wants of local customer groups?cities, neighborhoods, and even specific stores. Individual marketing has also been labeled one-to-one marketing, mass customization, and markets-of-one marketing. Choosing a Targeting Strategy Which strategy is best depends on: Company resources Product variability Product's life-cycle stage Market variability Competitors' marketing strategies

POSITIONING A product's position is the way the product is defined by consumers on important attributes. E. G. Tide is positioned as a powerful, all-purpose family detergent; Ivory is positioned as the gentle detergent for fine washables and baby clothes. Positioning Maps show consumer perceptions of their brands versus competing products on important buying dimensions. Perceptual positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions. Choosing a Differentiation and Positioning Strategy The differentiation and positioning task consists of three steps: 1.

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Rouser Reeves believes a company should develop a unique selling proposition (USPS) for each brand and stick to it. Other marketers think that companies should position themselves on more than one differentiator. Which Differences to Promote A difference is worth establishing to the extent that it satisfies the following criteria: Important: The difference delivers a highly valued benefit to target buyers. Distinctive: Competitors do 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. VALUE POSITIONING More for More positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs. More for the Same positioning involves introducing a brand offering comparable quality but at a lower price. The Same for Less positioning can be a powerful value proposition?everyone likes a good deal.

Less for Much Less positioning is offering products that offer less and therefore cost less. "Less for much less" positioning involves meeting consumers' lower performance or quality requirements at a much lower price. More for Less positioning is the winning value proposition. In the long run, companies will find it very difficult to sustain such best-of-both positioning. COMMUNICATING A POSITION Once it has chosen a position, the company must take strong steps to deliver and communicate the desired position to target consumers. All the company's marketing mix efforts must support the positioning

strategy.