Customer-Driven Marketing Strategy: Creating Value for ...student.bms.lk/CBM/Slides/34/Slides/MP/CBM...

of 29 /29
Customer-Driven Marketing Strategy: Creating Value for Target Customers

Embed Size (px)

Transcript of Customer-Driven Marketing Strategy: Creating Value for ...student.bms.lk/CBM/Slides/34/Slides/MP/CBM...

  • Customer-Driven Marketing Strategy:

    Creating Value for Target Customers

  • A MARKETER’S VIEWPOINT

    A market means an aggregate of people, who as

    individuals or organisations have a need for acertain product and the ability, willingness andauthority to purchase such products forconsumption.

  • REQUIREMENTS OF A MARKET

    Need

    Ability

    Willingness

    Authority

    +

  • TYPES OF MARKETS

    • CONSUMER MARKET

    All the individuals and households who buy goods and services forpersonal consumption.

    • INDUSTRIAL/BUSINESS-TO-BUSINESS OR ORGANISATIONAL MARKET

    Individuals or groups that purchase a specific kind of product for re-sale, use directly in producing other products or use in general dailyoperations of its business.

  • TARGET MARKETING

    MARKET

    SEGMENTATION

    MARKET

    TARGETING

    MARKET

    POSITIONING

  • MARKET SEGMENTATION

    Dividing a market into smaller groups with distinct

    needs, characteristics, or behaviour that mightrequire separate marketing strategies or mixes.

    (Philip Kotler – 13th edition)

  • VARIABLES/BASES OF SEGMENTING A CONSUMER MARKET

    Bases/Variables for

    Segmenting a Consumer Market

    Demographic

    Segmentation

    Geographic

    Segmentation

    Psychographic

    Segmentation

    Behavioural

    Segmentation

  • DEMOGRAPHIC SEGMENTATION

    • GENDER

    • AGE

    • FAMILY SIZE

    • NATIONALITY

    • RELIGION

    • EDUCATION

    • INCOME

    • OCCUPATION

  • GEOGRAPHIC SEGMENTATION

    • COUNTRY

    • REGIONS

    • STATES

    • DISTRICTS

    • DENSITY

  • PSYCHOGRAPHIC SEGMENTATION

    • SOCIAL CLASS

    • LIFESTYLE

    • PERSONALITY

  • BEHAVIOURAL SEGMENTATION

    • PURCHASE OCCASION

    • USER STATUS

    • USEAGE RATE

    • BENEFITS SOUGHT

    • LOYALTY STATUS

  • BENEFITS OF MARKET SEGMENTATION

    Satisfying and delighting customers

    Customer Retention

    Target marketing communications

    Segment Leadership

    Better understanding of the competitors

    Creates competitive advantage

    Effective Resource Allocation

    Increases profitability

  • REQUIREMENTS (CRITERIA) FOR EFFECTIVE

    SEGMENTATION

    • Measurable

    • Accessible

    • Substantial

    • Differentiable

    • Actionable

  • MARKET TARGETING

    Market segmentation reveals the firms market-segment

    opportunities.

    The organisation now has to evaluate the varioussegments and decide how many and which ones to serve.(Selecting)

  • Segmentation and Target Marketing

    Market Segmentation:

    Divide the market into segments of customers

    Target Market

    Selecting the segment to cultivate

    #1 #2

  • MARKET TARGETING

    Target market consists of a set of buyers whoshare common needs or characteristics that thecompany decides to serve.

    TARGET MARKET

  • EVALUATING MARKET SEGMENTS

    • Segment size and growth

    • Segment structural attractiveness

    • Company Objectives and Resources

  • Target Marketing Strategies

    UNDIFFERENTIATED MARKETING

    A strategy, in which an organisation decides to ignore marketsegment differences and target the whole market with oneoffer.

    • Defining an entire (homogeneous) market for a particular product as thetarget market

    • Designing a single marketing mix for, and directing it at the total market

    Whole MarketMarketing Mix

  • DIFFERENTIATED MARKETING

    A strategy in which an organisation decides to target severalmarket segments and designs separate offers for each

    Targeting two or more segments by developing a marketing mix for each

    Goal is to achieve higher sales and stronger position

  • CONCENTRATED MARKETING

    A strategy in which an organisation goes after a largeshare of one or few segments or niches

    • Limited company resources• Superior knowledge of the market• Focusing on a single market segment using one marketing mix

    Segment 1

    Marketing Mix

    Segment 2

    Segment 3

  • INDIVIDUAL OR CUSTOMIZED MARKETING

    Individual or customized marketing is the practice oftailoring products and marketing programs to suit the tastesof specific individuals and locations.

    Marketing Mix 1 Customer 1

    Marketing Mix 2 Customer 2

    Marketing Mix 3 Customer 3

  • POSITIONING

    Positioning is arranging for a market offering to

    occupy a clear, distinctive and desirable placerelative to competing products in the minds of thetarget consumers.

    (Philip Kotler – 13th edition)

  • A product’s position is the way the product is defined byconsumers on important attributes: the place the productoccupies in consumers’ minds relative to competing products.“Products are created in the factory, but brands arecreated in the mind” says a positioning expert.

    For example, a credit card from American Express might soundprestigious than a credit card from a local bank even thoughboth products are similar. In the automobile market Mercedesand Cadillac are positioned on luxury, BMW on performance, andVolvo on safety, while Toyota positions its fuel efficient, hybridPrius as a high-tech solution to the energy shortage. (How farwill you go to save the planet?)

  • POSITIONING VARIABLES

    Benefit positioning

    Ceylinco Insurance - “On the spot claims payment”

    Mortein coil - a good night sleep for 12 hours

    Signal – strong teeth and prevention of decay

    Close-up – long lasting fresh breath and dazzling white

  • PRODUCT CATEGORY LEADER

    Prima Noodles is the leader in the instant noodles market

    Panadol is the leader in the pain reliever market

    Vim is the leader in the scouring powder market

  • AGAINST THE COMPETITOR

    Paracetamol and Panadol Coke and Pepsi Munchee and Maliban Kandos and Edna Dialog and Mobitel Signal vs Clogard Avis rental cars – we are no: 2, we try harder

  • UNIQUE SELLING PROPOSITION

    LG Door Cooling Refrigerators - This technology is a patent for LG.

    Apple Macintosh – for graphic users

  • QUALITY/PRICE POSITIONING

    IBM

    3M

    Rolex

    Apple iphone

  • THANK YOU