Customer-Driven Marketing Strategy: Market Segmentation Strategies
Explore the significance of market segmentation for creating effective marketing strategies tailored to diverse consumer needs and behaviors. Learn about geographic, demographic, psychographic, and behavioral segmentation to enhance customer targeting and engagement.
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Presentation Transcript
Chapter Seven Customer-Driven Marketing Strategy: Creating Value for Target Customers
Customer-Driven Marketing Strategy: Creating Value for Target Customers Topic Outline Market Segmentation Market Targeting Differentiation and Positioning
Market Segmentation Market segmentation involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. .
Market Segmentation Segmenting consumer markets Segmenting business markets Segmenting international markets Requirements for effective segmentation
Market Segmentation Segmenting Consumer Markets Geographic segmentation Demographic segmentation Psychographic segmentation Behavioral segmentation
Market Segmentation Segmenting Consumer Markets Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities
Market Segmentation Segmenting Consumer Markets Demographic segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality
Market Segmentation Age and life-cycle stage segmentation is the process of offering different products or using different marketing approaches for different age and life-cycle groups Gender segmentation divides the market based on sex (male or female) has long been used in clothing, cosmetics, toiletries, and magazines.
Market Segmentation Segmenting Consumer Markets Income segmentation divides the market into affluent, middle-income or low-income consumers has long been used by the marketers of products and services such as automobiles, clothing, cosmetics, financial services, and travel Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality traits
Market Segmentation Segmenting Consumer Markets Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product Occasions Benefits sought User status Usage rate Loyalty status
Market Segmentation Segmenting International Markets Geographic location Economic factors Political- legal factors Cultural factors
Market Segmentation Requirements for Effective Segmentation To be useful, market segments must be: Measurable Accessible Substantial Differentiable Actionable
Market Targeting Market targeting (or targeting) consists of evaluating each market segment s attractiveness and selecting one or more market segments to enter
Market Targeting Target Marketing Strategies Differentiated marketing (or segmented marketing) strategy, a firm decides to target several market segments and designs separate offers for each
Market Targeting Target Marketing Strategies Undifferentiated (or mass-marketing) strategy, a firm might decide to ignore market segment differences and target the whole market with one offer.
Market Targeting Target Market Strategies Concentrated marketing (or niche marketing) strategy, instead of going after a small share of a large market, the firm goes after a large share of one or a few smaller segments or niches 21
Marketing Targeting Target Market Strategies Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
Market Targeting Target Market Strategies Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups Cities Neighborhoods Stores
Market Targeting Target Market Strategies Individual marketing tailoring of products and marketing programs to the needs and preferences of individual customers
Differentiation and Positioning Differentiation involves actually differentiating the firm s market offering to create superior customer value. Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
Differentiation and Positioning Identifying Possible Value Differences and Competitive Advantages Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
Differentiation and Positioning Choosing the Right Competitive Advantage Difference to promote should be: Important Distinctive Superior Communicable Preemptive Affordable Profitable
Differentiation and Positioning Selecting an Overall Positioning Strategy Value proposition is the full mix of benefits upon which a brand is positioned
