CH - 4 Customer Driven Marketing
CH - 4 Customer Driven Marketing
CH - 4 Customer Driven Marketing
Targeting
Differentiation Positioning
4. Introduction
wants,
resources,
locations, buying
attitudes, and
buying practices
Etc.
Important segmentation concepts
• Levels of market segmentation
• Steps in segmentation
• Importance of segmentation
• Bases for segmenting consumer market
• Segmenting business market
• Requirements for effective segmentation
Levels of market segmentation
• Age • Culture
• Gender • Occupation
• Family • Profession
• Income • Ethnicity
• Education
• Religion
Cont’d
Loyalty status
2. Profit Potential
4. Retaining Customer
Firms can establish a life-long relationship with their consumers
via formulating an effective market segmenting strategy.
6. Market Share;
After evaluating different segments, the company must now decide which
and how many segments to serve.
The company should enter segments only where it can offer superior
value and gain advantages over competitors.
undifferentiated marketing
Differentiated marketing and
Concentrated marketing
undifferentiated marketing
A firm might decide to ignore market segment differences and go after the
whole market with one offer. What is common in need rather than what is
different.
provides cost of economies
Doubts
Concentrated marketing
Instead of going after a small share of a large market, the firm goes after a
large share of one or a few submarkets.
• Especially appealing when company resources are limited.
• A strong market position in the segments (or niches) it serves
• greater knowledge of the segments
• Its special reputation.
• Enjoys many operating economies because of specialization in
production, distribution and promotion.
III. Choosing market targeting strategies
• company resources
• The degree of product variability
• Product’s stage in the life cycle
• Market variability
• Competitors’ marketing strategies
Deciding on value proposition
Consumers typically choose products and services that give
them the greatest value.