Summary Chapter Customer-driven Marketing Strategy Analysis Essay Example

use the purchased item.

Benefit segmentation categorizes buyers based on the different benefits they seek from a product. User status segmentation categorizes markets into nonusers, ex-users, potential users, first-time users, and regular users of a product. Usage rate segmentation categorizes markets into light, medium, and heavy product loyalty.Segmentation by business: Companies have the option to segment international markets using different variables. These variables can include geographic factors, such as nations that are close to each other and share common traits and behaviors. Additionally, economic factors, such as population income levels and overall economic development, can be considered. Political and legal factors, such as the type and stability of government, receptivity to foreign firms, monetary regulations, and bureaucracy, are also important. Cultural factors, such as common languages, religions, values and attitudes, customs, and behavioral patterns, should also be taken into account.

Evaluate Market Segments: It is important for marketers to determine if a segment is useful to target before investing resources. Marketers need to assess if the segments are measurable in terms of size, purchasing power, and profiles. They also need to consider if the market segments are substantial enough to serve profitably. Accessibility is another key factor to consider; marketers need to ensure that the market segments can be effectively reached and served through media or other means. Finally, the market segments should be actionable, meaning that effective programs can be designed to attract and serve them.

The text emphasizes the importance of differentiable segments in marketing, stating that they respond differently to marketing mix elements. In evaluating market segments, a firm must consider the size and growth, structural attractiveness, and company objectives and resources. It is

noted that the largest and fastest-growing segments may not always be the most attractive ones for every company. Factors that affect segment attractiveness in the long run, such as the presence of strong competitors, should also be examined.

Ad man Rouser Reeves suggests that each brand should have a unique selling proposition (USP) and that companies should stick to it. However, other marketers argue that companies should position themselves based on more than one differentiator.

To determine which differences are worth promoting, the text highlights specific criteria. A difference should be important and deliver a highly valued benefit to target buyers. It should also be distinctive, superior to other alternatives, communicable and visible to buyers, difficult for competitors to copy, and affordable for buyers.

The company can introduce profitable differences in value positioning by adopting various strategies. "More for More" positioning involves offering a premium product or service at a higher price to compensate for the elevated costs. "More for the Same" positioning involves introducing a brand that offers comparable quality but at a lower price. On the other hand, "Same for Less" positioning offers products that meet consumers' quality requirements at a lower price. "Less for Much Less" positioning involves offering products with lower performance or quality at a significantly lower price. Lastly, "More for Less" positioning is considered the most effective value proposition.

Once a position is chosen, the company must take strong steps to effectively communicate and deliver that position to the target consumers. All marketing mix efforts should align with the overall positioning strategy.