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