Marketing 7

• Marketing strategy


  Boils down to 2 questions: 1) Which customers will we serve? (STP) 2) How will we serve them? (4Ps)
• Customer-driven marketing strategy


  • Market segmentation
  • Targeting
  • Differentiation
  • Positioning
• Market segmentation


  Dividing a market into smaller segments with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes
• Bases for segmenting consumer markets

  • Geographic
  • Demographic
  • Psychographic
  • Behavioral
• Geographic segmentation


  Dividing the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods
• Demographic segmentation


  Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation
• Psychographic segmentation


  Dividing a market into different segments based on social class, lifestyle, or personality characteristics
• Behavioral segmentation


  Dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product
• Behavioral segmentation examples


  • Occasions: Starbuck's PSL
  • Benefits sought
  • User status: non-, ex-, potential, first, regular users
  • Usage rate: light, medium, heavy users
  • Loyalty status
  • Benefit segmentation: Schwinn makes bikes for every benefit segment
• Multiple segmentation


  Using multiple segmentation variables to identify smaller, better-defined target groups
• Additional variables for segmenting business markets

  • Customer operating characteristics
  • Purchasing approaches
  • Situational factors
  • Personal characteristics
• Segmenting international markets


  Considering geographic location, economic factors, political and legal factors, and cultural factors
• Intermarket segmentation


  Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
• Requirements for effective segmentation


  • Measurable
  • Accessible
  • Substantial
  • Differentiable
  • Actionable
• Target market


  A set of buyers who share common needs or characteristics that the company decides to serve
• Market-targeting strategies


  • Undifferentiated marketing
  • Differentiated marketing
  • Concentrated marketing
  • Micromarketing
• Undifferentiated marketing


  Targeting the whole market with one offer, focusing on common needs rather than what's different
• Differentiated marketing


  Targeting several different market segments and designing separate offers for each, to achieve higher sales and a stronger position
• Concentrated marketing


  Targeting a large share of a smaller market, when the company has limited resources and strong knowledge of the market
• Micromarketing


  Tailoring products and marketing programs to suit the tastes of specific individuals and locations, including local marketing and individual marketing
• Local marketing


  Tailoring brands and promotion to the needs and wants of local customer segments, such as cities, neighborhoods, or stores
• Individual marketing


  Tailoring products and marketing programs to the needs and preferences of individual customers, also known as one-to-one marketing, mass customization, or markets-of-one marketing
• Factors influencing choice of targeting strategy

  • Company resources
  • Product variability
  • Product life-cycle stage
  • Market variability
  • Competitor's marketing strategies
• Product position


  The way the product is defined by consumers on important attributes
• Value proposition


  The full mix of benefits upon which a brand is positioned
• Positioning statement


  A statement that summarizes a company or brand's positioning using the format: To (target segment and need) our (brand) is (concept) that (point of difference)
• Specific Positioning


  • Core Benefit or Point of Difference
  • Benefit positioning
  • Attribute positioning
  • Use/application positioning
  • User positioning
  • Competitor positioning
  • Category positioning
  • Quality/price positioning