Professional Documents
Culture Documents
Principles of Marketing
Customer-Driven
Marketing Strategy:
Creating Value for Target
Customers
Learning Objectives
1. Market Segmentation
2. Marketing Target
3. Differentiation and Positioning
4. Positioning for Competitive Advantage
7-3
Market Segmentation
Market segmentation
is the process that companies use to divide
large heterogeneous markets into small
markets that can be reached more efficiently
and effectively with products and services that
match their unique needs
7-5
Market Segmentation
7-6
Market Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral
7-7
Market Segmentation
7-8
Market Segmentation
Segmenting Consumer Markets
7-9
Market Segmentation
7-13
Market Segmentation
Segmenting Consumer Markets
7-15
Market Segmentation
Segmenting Consumer Markets
7-16
Market Segmentation
Using Multiple Segmentation Bases
Multiple segmentation is used to identify
smaller, better-defined target groups
Geo-demographic segmentation is an
example of multivariable segmentation that
divides groups into consumer lifestyle
patterns
7-18
Market Segmentation
7-19
Market Segmentation
Using Multiple Segmentation Bases
Prizm classifications include
• Age • Ethnicity
• Educational level • Housing
• Income • Behavioral and lifestyle
• Occupation factors
• Family composition
• Purchases
• Free-time activities
• Media preferences
7-20
Market Segmentation
Segmenting Business Markets
• Customer-operating characteristics
• Purchasing approaches
• Situational factors
• Personal characteristics
7-21
Market Segmentation
Four factors:-
• Geographic location
• Economic factors
• Political and legal factors
• Cultural factors
7-22
Market Segmentation
Intermarket segmentation
7-23
Market Segmentation
Requirements for Effective Segmentation
7-28
Market Targeting
7-32
Market Targeting
7-33
Market Targeting
Selecting Target Market Segments
7-35
Market Targeting
Selecting Target Market Segments
7-36
Market Targeting
Selecting Target Market Segments
7-37
Market Targeting
Selecting Target Market Segments
Local Marketing
• Benefits:
• Increased marketing effectiveness in competitive markets
• More customer-specific offerings
• Challenges:
• Increased manufacturing and marketing costs
• Less economy of scale
• Logistics
• Dilution of company image
7-38
Marketing Targeting
7-40
Market Targeting
7-41
Market Targeting
7-42
Market Targeting
Socially Responsible Target Marketing
7-43
Differentiation and Positioning
7-44
Differentiation and Positioning
Positioning maps show consumer perceptions of
their brands versus competing products on
important buying dimensions
• Price (Y-axis) and orientation (X-axis)
• Refer to page 192, Figure 7.3
7-45
Example of Positioning Map – Car Brands
in USA
Differentiation and Positioning
7-46
Differentiation and Positioning
Choosing a Differentiation and Positioning Strategy
• Product differentiation
• Service differentiation
• Channels
• People
• Image
7-47
Differentiation and Positioning
Identifying Possible Value Differences and
Competitive Advantage
7-48
Differentiation and Positioning
Choosing the Right Competitive Advantages
7-49
Differentiation and Positioning
Selecting an Overall Strategy
7-51