Marketing for Engineers Ch 7

7/24/2019 Marketing for Engineers Ch 7

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Marketing for Engineers

Dr. Karim Kobeissi



Chapter 7: Customer-Driven Marketing Strategy

- Creating Value for arget Customers



Introduction

This chapter looks further into key !ustomer-

"riven marketing strategy decisions: dividing

up markets into meaningful customer groups

(segmentation), choosing which customer

groups to serve (targeting), creating market

oferings that best serve targeted customers(diferentiation), and positioning the ofer ings

in the minds of consumers ( positioning).



# #$ositioning % S$: he Essen!e of

Strategi! Marketing



Market segmentation is the process

that companies use to divide large

heterogeneous markets into small

markets that can be reached more

eciently and eectively with

products and services that match

their unique needs.

arket !egmentation





• !egmenting "onsumer arkets

• !egmenting International arkets

• !egmenting #usiness arkets

• $equirements for %ective !egmentation

Market Segmentation



Market Segmentation

&eographi!segmentati

on

Demographi!

segmentation

$sy!hographi!segmentatio

n

'ehavioralsegmentati

on

Segmenting Consumer Markets



Market Segmentation

&eographi! segmentation divides the

market into dierent geographical unitssuch as nations& regions& states& counties&

or cities.






Market Segmentation

Demographi! segmentation divides the

market into groups based on variables such as

age& gender& family si'e& family life cycle&

income& occupation& education& religion& race&

generation& and nationality.




M ar ke t S e g m e n t a t i o n

- (ge an" life-!y!le stage segmentation is

the process of oering dierent products or

using dierent marketing approaches fordierent age and lifecycle groups.

- &en"er segmentation divides the market

based on se) (male or female*.

- )n!ome segmentation divides the market into

a+uent or lowincome consumers.








Market Segmentation

$sy!hographi!

segmentation divides

buyers into dierent

groups based on social

class& lifestyle& or

personality traits.




Market Segmentation

'ehavioral segmentation

divides buyers into groups based on their knowledge&

attitudes& uses& or responses to a product

• ,ccasions

• #ene-ts sought

• ser status

• sage rate

• /oyalty status










arket !egmenta t ion

Multiple segmentation is used to identifysmaller& betterde-ned target groups.

sing ultiple !egmentation #ases

•



Market Segmentation

$*)+M ,E classi-es every0merican household into 11unique segments organi'edinto 23 dierent socialgroups.

• These groups segmentpeople and locations into

marketable groups of likeminded consumers thate)hibit uniquecharacteristics and buying

behavior based on amultitude of demo ra hic

sing Multiple Segmentation 'ases



k i



arke t !egmenta t i on



arket !egmenta t ion

- )ntermarket segmentation divides

consumers into groups with similar

needs and buying behaviors even

though they are located in dierentcountries.

!egmenting International arkets





k t ! t t i



arke t !egmenta t i on



Market Segmentat ion

• To be useful& market segments mustbe:

*euirements for E/e!tive Segmentation





Market argeting

• Target market consists of a set of

buyers who share common needs or

characteristics that the company

decides to serve.

Sele!ting arget Market Segments



M k t t i



Mar ket ar get ing

• !egment si'e and growth

• !egment structural attractiveness

(!trong 4 5eak "ompetitors&

6igh4/ow Industry 7rowth $ate8*

• "ompany ob9ectives and resources

Evaluating Market Segments

.

M k t ti



Market argetingarget Marketing Strategies

%)ample of a "oncentrated arketing



%)ample of a "oncentrated arketing!trategy

%)ample of icro marketing (Individual



%)ample of icromarketing (Individualarketing*



Market argeting

n"i/erentiate" marketing targets the

whole market with one o/er.

– ass marketing

–ocuses on common needs rather than

what;s dierent

arget Marketing Strategies





Market argeting

Con!entrate" marketing targets a small share

of a large market

• /imited company resources

• <nowledge of the market

• ore eective and ecient

arget Market Strategies



Marketing argeting

Mi!romarketing is the practice of

tailoring products and marketingprograms to suit the tastes of speci-c

individuals and locations

• /ocal marketing

• Individual marketing




Market argeting

0o!al marketing involves tailoringbrands and promotion to the needsand wants of local customergroups

• "ities

• =eighborhoods

• !tores




Market argeting

)n"ivi"ual marketing involves tailoring

products and marketing programs to the

needs and preferences of individual customers

• 0lso known as: – ,netoone marketing

– ass customi'ation

– arketsofone marketing


Market argeting



Market argeting

>epends on:

• "ompany resources

• ?roduct variability

• ?roduct lifecycle stage

• arket variability

•

"ompetitor;s marketing strategies

Choosing a arget Market







Di/erentiation an" $ositioning

$ositioning maps show consumer

perceptions of their brands versuscompeting products on important

buying dimensions

d i i i



?roducts ?ositioning ap

Di/ ti ti "



Di/erentiation an"$ositioning

• Identifying a set of possible

competitive advantages to build aposition

• "hoosing the right competitive

advantages• !electing an overall positioning

strategy

•

>eveloping a positioning

Choosing a Di/erentiation an" $ositioning Strategy

Di/ ti ti "




Competitive a"vantage is an advantage

over competitors gained by oering

consumers greater value& either through

lower prices or by providing more

bene-ts that 9ustify higher prices.

)"entifying $ossible ValueDi/eren!es an" Competitive

("vantages

Di/ ti ti "




Identifying a set of possiblecompetitive advantages to

build a position by providingsuperior value from:

Choosing a Di/erentiation an" $ositioning Strategy



Di/ ti ti "




Value

$roposition

is the full mi)

of bene-ts

upon which a

brand is

Sele!ting an 1verall $ositioning Strategy





Examples o Positioning Statements Used by



Examples o Positioning Statements Used byma!on

"#or $orld $ide $eb users who en%oybooks, ma!on.com is a retail bookseller

that pro&ides instant access to o&er '.'

million books. Unlike traditional book

retailers, ma!on.com pro&ides a

combination o extraordinary

con&enience, low prices, and

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Marketing for Engineers Ch 7