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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
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.
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
Segmenting a Consumer Market
• FAMILY SIZE
• SOCIAL CLASS
• PURCHASE OCCASION
• USER STATUS
• USEAGE RATE
• BENEFITS SOUGHT
• LOYALTY STATUS
BENEFITS OF MARKET SEGMENTATION
Satisfying and delighting customers
Target marketing communications
Better understanding of the competitors
Creates competitive advantage
Effective Resource Allocation
REQUIREMENTS (CRITERIA) FOR EFFECTIVE
Market segmentation reveals the firms market-segment
The organisation now has to evaluate the varioussegments and decide how many and which ones to serve.(Selecting)
Segmentation and Target Marketing
Divide the market into segments of customers
Selecting the segment to cultivate
Target market consists of a set of buyers whoshare common needs or characteristics that thecompany decides to serve.
EVALUATING MARKET SEGMENTS
• Segment size and growth
• Segment structural attractiveness
• Company Objectives and Resources
Target Marketing Strategies
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
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
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
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 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?)
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