Consumer- Drive Marketing Strategy:

CREATING VALUE FOR

TARGET CUSTOMERS77

chapter:

Katarína Chomová, 2012

SEGMENTATIONDividing a market into smallersegments with district needs,characteristics or behavior thatmight require separate marketingstrategies or mixes.

TARGETINGThe process of evaluating ofeach market segment´sattractiveness and selecting oneor more segments to enter.

POSITIONINGArraging for a market offering tooccupy a clear, distinctive, anddesirable place relative tocompeting products in the minds oftarget consumers.

= through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.

A marketer has to try differnt segmentation variables. Herewe look at the major :•GEOGRAPHIC•DEMOGRAPHIC•PSYCHOGRAPHIC and BEHAVIORAL variables

SEGMENTATION

= Dividing a market into different geographical units,

such as nations, states, regions, countries and cities.

GEO

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GEO

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Walmart has developed special formats tailored to specific types of geographic locations, from Hispanic-focused Supermercado de Walmart stores.

DEM

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= Dividing a market into segments based on variables such as age, gender, family

size, family life cycle, income, occupation, education,

religion, race, generation and nationality.

• Age and Life-Cycle Stage

= People change the goods and services they buy over their lifetimes.

• Gender= has been used in clothing, cosmetics,

toiletries and magazines.

• Income= has been used in automobiles, clothing,

cosmetics, financial services and travel.

PSY

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PSYC

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N= Dividing a market into

defferent segments based on social class, lifestyle or

personality characteristics.

Strivers are trendy and fun loving. Because they are motivated by achievement, Strivers are concerned about the opinions and approval of others. Money defines success for Strivers, who don't have enough of it to meet their desires. They favor stylish products that emulate the purchases of people with greater material wealth. Many Strivers see themselves as having a job rather than a career, and a lack of skills and focus often prevents them from moving ahead.

Favorite Things: Chevrolet , Playboy , Coke Classic

Motivated by the desire for achievement, Achievers have goal-oriented lifestyles and a deep commitment to career and family. Their social lives reflect this focus and are structured around family, their place of worship, and work. Achievers live conventional lives, are politically conservative, and respect authority and the status quo. They value consensus, predictability, and stability over risk, intimacy, and self-discovery.

Favorite Things: Honda , low-calorie domestic beer ...

Survivors live narrowly focused lives. Because they have few resources with which to cope, they often believe that the world is changing too quickly. They are comfortable with the familiar and are primarily concerned with safety and security. Because they must focus on meeting needs rather than fulfilling desires, Survivors do not show a strong primary motivation.

Favorite Things: an American car, a home-brewed cup of coffee

BEH

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BEHA

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ON = Dividing a market into

segment based on consumer knowledge, attitudes, uses or

responses to a product.

Loyalty Status Segmentation

Switchers

Shifting loyals

Split loyals

Hard-core

• Occasions= dividing a market into segments according

to occasions when buyers get the idea to buy, actually make their purchase or use the

purchased item..

• Benefits= dividing a market into segments according to the differnt benefits that consumers seek

from the product.

• measurable = the size, purchasing power and profiles of the segments can be measured

• accessible = the market segments can be effectively reached and served

• substantial= the market segments are large or profitable enough to serve

• differentiable= the 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

SEGMENTATIONDividing a market into smallersegments with district needs,characteristics or behavior thatmight require separate marketingstrategies or mixes.

TARGETINGThe process of evaluating ofeach market segment´sattractiveness and selecting oneor more segments to enter.

POSITIONINGArraging for a market offering tooccupy a clear, distinctive, anddesirable place relative tocompeting products in the minds oftarget consumers.

= evaluating the various segments and deciding how many and which segments it can serve best

TARGET MARKET= A set of buyers sharing common needs or characteristics that the company decides to serve.

= Market targeting can be carried out at several different levels.

TARGETING

Undifferentiated (Mass)Marketing

Differentiated (Segmented)Marketing

Concentrated (Niche)Concentrated (Niche)MarketingMarketing

Micromarketing (Local or Individual Marketing )

Targeting broadly

Targeting narrowly

Undifferentiated (Mass)Marketing

= A market-coverage strategy in which a firm decides to ignore market segment differences and

go after the whole market with one offer.

Henry FORDHenry FORD – – Model TModel T

"Any customer can have a car painted any color that he wants

so long as it is black."

Differentiated (Segmented)Marketing

= A market-coverage strategy in which a firm decides to target several market segments and

designs separate offers for each.

-- Block 3M Post-it is now produced in 18 colors in 27 sizes, 56 shapes and 20 in fragrances. For the consumer is thus available for more than half a million combinations.

Targets several segments anddesigns separate offers foreach.

– Coca-Cola (Coke, Sprite, Diet Coke, etc.)

– Procter & Gamble (Tide, Cheer, Gain, Dreft, etc.)

– Toyota (Camry, Corolla, Prius, Scion, etc.)

= MARTINI- ROSSO - Elegant group of young

people relaxing in a nice environment

= MARTINI- BIANCO 20-30 years old young people who are making a sport

= MARTINI- EXTRA DRY for „gurmans“

Concentrated (Niche)Concentrated (Niche)MarketingMarketing

= A market-coverage strategy in which a firm goesafter a large share of one or a few segments or niches.

Cafédirect’s Wolfgang Weinmann said, “Access for smallholder farmers to added-value markets like climate-smart and ethical products clearly is the way forward. Plus, of course delivering

high quality and absolute traceability.

Micromarketing (Local or Individual Marketing)

= Tailoring products and marketing programs to theneeds and wants of specific individuals and local

customer segments. It includes local marketing and individual marketing.

Local Marketing= Tailoring brands and promotions to the needs and

wants of local customer segments- cities, neighborhoods and even specific stores.

Individual Marketing= Tailoring products and marketing programs to the needs and preferences of individual customers- also called one-to-one marketing, customized marketing

and markets-of-one marketing.

ONE TO ONE

MARKETING

SEGMENTATIONDividing a market into smallersegments with district needs,characteristics or behavior thatmight require separate marketingstrategies or mixes.

TARGETINGThe process of evaluating ofeach market segment´sattractiveness and selecting oneor more segments to enter.

POSITIONINGArraging for a market offering tooccupy a clear, distinctive, anddesirable place relative tocompeting products in the minds oftarget consumers.

POSITIONING

= PRODUCT POSITION The way the product is defined byconsumers on important attributes- theplace the product occupies inconsumers´minds relative to competingproducts.

Positioning Maps: Luxury SUVsPrice vs. Orientation Dimensions

ROLEX = the best watch in the world

COCA-COLA = the most famous soft drink in the world

PORSCHE = one of the best sport´s car

eBay’s positioning: No matter what “it” is, you can find “it” on eBay!

Positioning Example

POSITIONING STRATEGY

offered benefits the present stop hunger

opportunity to use

„take a rest“ the chocolate after dinner

The personality David Beckham Adidas, Pepsi, Vodafone, Police, Motorola, Parfémy, Armani............

Country of origin

VW- qualityŠkoda- low price

The competition

7-Up - „Uncola“

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Sources of Differentiation

– Product Design– Quality– Additional Services – Image– People (Staff)– Price– Other