Customer-Driven Marketing Strategy Creating Value for Target Customers

1. Global Edition Customer-Driven Marketing StrategyCreating Value for Target Customers Chapter 6

2. Rest Stop : Previewing the Concepts • Define the major steps in designing a customer-driver marketing strategy: market segmentation, targeting, differentiation, and positioning. • List and discuss the major bases for segmenting consumer and business markets. • Explain how companies identify attractive market segments and choose a market-targeting strategy. • Discuss how companies differentiate and position their products for maximum competitive advantage in the marketplace.

3. Figure 6.1 - Designing a Customer-Driven Marketing Strategy (p.193)

5. 顧客導向行銷策略也稱「目標行銷」、「 STDP」 • 市場區隔 (segmenting) • 選定目標市場 (targeting) • 差異化(differentiation) • 市場定位 (positioning) • STDP行銷之做法： • 選擇合適的區隔基礎，將消費者區分為不同群體。 • 評估區隔吸引力，選擇一個或數個區隔群體，做為企業的目標市場。 • 發展產品或服務的差異化特質，建立定位，並配合其他行銷組合，以達到企業在該目標市場的競爭優勢。

6. Segmenting Consumer Markets (p.193)

7. Segmenting Consumer Markets (p.193) • 地理變數 (geographic segmentation) • 人口統計變數 (demographic segmentation) • 心理變數 (psychographic segmentation) • 行為變數 (behavioral segmentation) • There is no single way to segment a market. • Often best to combine more than one variable in order to identify smaller, better-defined target groups.

8. Geographic Segmentation (p.193) • Dividing a market into different geographical units, such as nations, states, regions, counties, or cities • Companies are localizing their products, advertising, promotion, and sales efforts to fit the needs of individual regions

9. Demographic Segmentation (p.194) • Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation • The most popular bases for segmenting customer groups. • Easier to measure than most other types of variables.

10. Age and Life-Cycle Segmentation (p.194) • Dividing a market into different age and life-cycle groups • Marketers must guard against using stereotypes Disney Cruise Lines targets primarily families with children—most of its destinations and shipboard activities are designed with parents and their children in mind

11. Gender Segmentation (p.195) • Dividing a market into different segments based on gender Harley-Davidson has traditionally targeted men between 35 and 55 years old, but women are now among its fastest-growing customer segments. Female buyers account for 12 percent of new Harley-Davidson purchases

12. Income Segmentation (p.195) • Dividing a market into different income segments • Some marketers target high-income segments • Retailers who target low- and middle-income groups are thriving

13. Income Segmentation (p.195) • Income: • Identifies and targets the affluent for luxury goods. • People with low annual incomes can be a lucrativemarket. • Some manufacturers have different grades of products for different markets (One-dollar store).

14. Psychographic Segmentation (p.196) • Dividing a market into different segments based on social class, lifestyle, or personality characteristics • The products people buy reflect their lifestyles • People in the same demographic classification often have very different lifestyles.

15. Behavioral Segmentation (p.198) • Dividing a market into segments based on consumer knowledge, attitudes, uses, or responses to a product

16. Occasion Segmentation • Dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item M&M’s Brand Chocolate Candies runs special ads and packaging for holidays and events such as Easter

17. Benefit Segmentation and User Status • Benefit segmentation: Dividing the market according to the different benefits that consumers seek from the product • User status – Segments include nonusers, ex-users, potential users, first-time users, and regular users • Usage Rate - Markets can also be segmented into light, medium, and heavy product users

18. Loyalty Status • Buyers can be divided into groups according to their degree of loyalty “Mac Fanatics”—fanatically loyal Apple users are at the forefront of Apple’s empire

19. Segmenting Business Markets (p.200) • Consumer and business markets use many of the same variables for segmentation. • Business marketers can also use: • Operating characteristics • Purchasing approaches • Situational factors • Personal characteristics

20. Segmenting International Markets (p.201) • Geographic location • Economic factors • Income levels or level of economic development • Political and legal factors • Type of government, receptivity to foreign firms, monetary regulations, and bureaucracy • Cultural factors • Languages, religions, values, customs

21. Intermarket Segmentation (p.201) • Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries Coca-Cola targets the world’s teens no matter where they live, with campaigns such as Coca-Cola Music, which ran in more than 100 markets worldwide

22. Requirements for Effective Segmentation (p.202) • To be useful, market segments must be: • Measurable • Accessible • Substantial • Differentiable • Actionable

23. Measurable: size, purchasing power, and profiles of segments can be measured. Accessible: segments can be effectively reached and served. Substantial: segments are large or profitable enough to serve. Differential: segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. Actionable: effective programs can be designed for attracting and serving the segments. Requirements for Effective Segmentation 心理變數難衡量、難接近、難定義、難區別 區隔變數用太多難衡量、獲利性不佳 市場範圍愈大愈可能用地理變數(國際行銷) 行銷人員最喜歡從行為變數下手 一定會用的變數是人口統計

24. Market Targeting (p.202) • Market targeting involves: • Evaluating marketing segments • Consider segment sizesegment structural attractivenessand company objectives and resources • Selecting target market segments • Alternatives range from undifferentiated marketing to micromarketing • Being socially responsible

25. Evaluating Market Segments (p.202) • Segment Structural Attractiveness • Consider competition, existence of substitute products, and the power of buyers and suppliers. • Company Objectives and Resources: • Examine company skills and resources needed to succeed in that segment. • Offer superior value and gain advantages over competitors. (apple vs. Amazon)

26. Selecting Target Market Segments (p.203) • After evaluating different segments, the company must decide which and how many segments it will target. • Target Market: • A set of buyers sharing common needs or characteristics that the company decides to serve

27. Figure 6.2 - Market Targeting Strategies (p.203)

28. Undifferentiated Marketing (p.203) • A firm decides to ignore market segment differences and go after the whole market with one offer • Focuses on what is common in the needs of consumers • Designs a product that will appeal to the largest number of buyers

29. Differentiated Marketing (p.203) • A firm decides to target several market segments and designs separate offers for each Hallmark’s three ethnic lines—Mahogany, Sinceramente Hallmark, and Tree of Life—target African-American, Hispanic, and Jewish consumers, respectively

30. Concentrated Marketing (p.204) • A firm goes after a large share of one or a few segments or niches • Can fine-tuneits products, prices, and programs to the needs of carefully defined segments

31. Micromarketing (p.205) • Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments

32. Local Marketing (p.205) • Tailoring brands and promotions to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores The North Face uses “geo-fencing” to send localized text messages to consumers who get near one of its stores

33. Individual Marketing (p.207) • Tailoring products and marketing programs to the needs and preferences of individual customers Companies such as CaféPress are hyper-personalizing everything from artwork, earphones, and sneakers to yoga mats, water bottles, and food

34. Choosing a Targeting Strategy (p.208) • Factors to consider: • Company resources • 統一 vs. 將軍 • Product variability • 衛生紙 vs. 洗髮精 • Product’s life-cycle stage • 傳統手機 vs. 智慧型手機 • Market variability • 牙膏 vs. 潄口水 • Competitors’ marketing strategies • 雞精

35. Socially Responsible Target Marketing (p.209) • Marketing sometimes generates controversy and concern when targeting: • Vulnerable, minority, or disadvantaged populations • Children and teens • Controversy arises when an attempt is made to profit at the expense of segments’ vulnerabilities.

36. Socially Responsible Target Marketing • Critics worry that marketers directly or indirectly target young girls with provocative products, promoting a premature focus on sex and appearance

37. Differentiation and Positioning (p.210) • The company must decide on a value proposition: • How it will create differentiated value for targeted segments • What positions it wants to occupy in those segments • Product position - The way a product is defined by consumers on important attributes

38. A product’s position is the way a product is defined by consumers on important attributes —the place the product occupies in consumers’ minds relative to competing products. Differentiation and Positioning (p.210) 有競爭才需定位？ 定位由誰決定？ 定位的依據是什麼？ 定位影響購買決策？

39. Figure 6.3 - Positioning Map: Large Luxury SUVs

40. Differentiation and Positioning (p.210) • Product is compared with competing products. • Simplifies the buying process by helping consumers organize products into categories. • 治療頭皮屑 • 不含阿斯匹靈的止痛葯 • 敏感性牙齒專用 • Marketers must: • Plan positions to give their products the greatest advantage in selected target markets, • Design marketing mixes to create these planned positions.

41. Differentiation and Positioning (p.210) • CPV=Total Benefits －Total Costs • 競爭優勢來自更高的CPV【more benefits--差異化、lower costs--低作本】 • 定位始於【more benefits】也就是差異化 【Differentiation 】 Identifying possible value differences and competitive advantages: • An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

42. Choosing a Differentiation and Positioning Strategy(p.211)

43. Differentiation and Positioning • Differentiation • Actually differentiating the marketing offering to create superior customervalue. • eg. 多芬含有1/4乳霜 • eg. 阿瘦抗震健走鞋 「奈米遠紅外線抗菌超軟鞋墊」

44. Differentiation and Positioning (p.212) • A firm can create differentiation on: • Product • Services • Channels • People • Image Seventh Generation, a maker of household cleaning supplies, differentiates itself not by how its products perform but by the fact that its products are greener

45. Differentiation and Positioning (p.212) Product Differentiation i.e. Features, Performance, Style & Design, Attributes Services Differentiation i.e. Delivery, Installation, Repair Services, Customer Training Services Channel Differentiation People Differentiation i.e. Hiring, Training Better People Than Competitors Do Image Differentiation i.e. Symbols, Characters (心理差異)

46. How Many Differences to Promote (p.213) • Choosing the right positioning requires selecting how manyand which differences to promote. • Many marketers believe that only one difference should be promoted via the unique selling proposition (USP). • Using multiple differences may generate consumer disbelief.

47. Choosing the Right Competitive Advantages Not all brand differences are meaningful and worthwhile, nor do all differences make a good differentiator. Each difference has the potential to create company COSTS as well as consumer VALUE. Choosing the Right Competitive Advantages (p.213)

48. Choosing the Right Competitive Advantages (p.213) • Choose whether to promote a single benefit or multiple benefits • Promote differences that are:

49. Choosing the Right Competitive Advantages (p.213) • Purex Complete 3-in-1 is positioned on multiple benefits • The challenge is to convince customers that one brand can do it all

50. Selecting an Overall Positioning Strategy (p.214) • Value Porposition • The full positioning of a brand—the full mix of benefits on which it is positioned