9/29/2015

Customer-Driven Marketing Strategy:

Creating Value for Target Customers

Topic Outline
• Market Segmentation
• Market Targeting
• Differentiation and Positioning 
Differentiation and Positioning
Chapter Seven
Customer‐Driven Marketing 
Strategy:
Creating Value for Target Customers
Copyright © 2009 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
Chapter 7- slide 1 Chapter 7- slide 2
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Market Segmentation Differentiation and Positioning

Identifying Possible Value Differences and 
Competitive Advantages

Differentiation is actually differentiating the 
firm’ss market offering to create superior 
firm market offering to create superior
customer value

Firm’s market Create

Superior
Differentiate
offering customer value

Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
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Differentiation and Positioning Differentiation and Positioning

Identifying Possible Value Differences and  Choosing a Differentiation and Positioning 
Competitive Advantages Strategy
Identifying a set of possible competitive advantages 
Competitive advantage is an advantage over  to build a position by providing superior value 
competitors gained by offering consumers 
co pet to s ga ed by o e g co su e s from:
greater value, either through lower prices  Product differentiation
or by providing more benefits that justify  Service differentiation
higher prices Channel differentiation
People differentiation
Image differentiation
Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
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Differentiation and Positioning Differentiation and Positioning

Choosing the Right Competitive Advantage
What to
offer Difference to promote should be:
Content
Enabler Important Distinctive
How to f t
factor
offer Context
Superior Communicable Preemptive

Infrastructure
Affordable Profitable

Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
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Differentiation and Positioning Differentiation and Positioning

Product position is the way  Choosing a Differentiation and Positioning 
the product is defined by  Strategy
consumers on important 
attributes—the place the  • Identifying a set of possible competitive 
product occupies in
product occupies in  advantages to build a position
consumers’ minds relative  • Choosing the right competitive advantages
to competing products
• Selecting an overall positioning strategy
– Perceptions
• Developing a positioning statement
– Impressions
– Feelings

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Positioning for Competitive Positioning for Competitive

Advantage Advantage
Positioning is the act of designing the company’s  • Product’s Position ‐ the place the product 
offering and image so that they occupy a  occupies in consumers’ minds relative to 
meaningful and distinct competitive position in the  competing products; i.e. Volvo positions on 
target customer’s mind.
y
“safety”.
The
The act of
company’s They occupy • Marketers must:
designing
offering
– Plan positions to give products the greatest 
advantage
The target
Meaningful – Develop marketing mixes to create planned 
and distinct
customer’s
competitive positions
mind
position
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Positioning Development
Product Positioning
• Customer
• Product characteristics – Positive positioning that customers have reasons to buy 
the company’s product as asset.
– Mont Blanc
• Company
• Price and quality – As indicator of strength and competitive advantage of 
– Rolex, Louis Vitton the company

• Usage • Competitor
– Unique, as differentiator from competitor
– Volvo, Mercedes
• Change
• User – Continuous and relevant to the changes Æ repositioning
– Beautiful actress as user of Lux
Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
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Differentiation and Positioning

Selecting an Overall Positioning Strategy

Value proposition 
st e u o
is the full mix of 
benefits upon 
which a brand is 
positioned

Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc.
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Differentiation and Positioning Perceptual Map

High Price
Positioning maps 
show consumer 
perceptions of 
G E A
their brands 
versus competing  D
products on 
important buying  Low C B High
dimensions
Quality Quality

F
Low Price
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Product Positioning Map Product Positioning Map

Breakfast Market Instant Breakfast Market
Expensive High price per ounce
Bacon Brand C
and Cold
eggs cereal

Slow Quick Low in High in

calories calories
Pancakes
Hot Instant Brand A Brand B
cereal breakfast
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Inexpensive Chapter 7- slide 19 Low price per ounce
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Differentiation and Positioning Developing a Positioning Statement

Developing a Positioning Statement • To (target segment and need) our (brand) is (concept)
that (point of difference)
• To (target segment and need) our (brand) is 
(concept) that (point of difference) • To busy professionals who need to stay organized, 
Palm is an electronic organizer that allows you to 
backup files on your PC more easily and reliably than
backup files on your PC more easily and reliably than 
competitive products.

Target Frame of Point of Competitive

• To busy, mobile professionals who need to always be in 
Brand Reference Edge the loop, BlackBerry is a wireless connectivity solution
Market Difference
that gives you an easier, more reliable way to stay 
connected to data, people, and resources while on the 
go.
Web link
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Communication and Delivering the

Chosen Position Communicating & Delivering 
the Chosen Position
Choosing the 
positioning is  Communicating
often easier than 
implementing the
implementing the  Chosen position
C
Company Target
position. Product, Price, Place,
customer
Promotion

Delivering

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