Marketing Management - PowerPoint by 49NUm54y

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									Marketing Management

      18 April 2011
Customer-Driven Marketing
Strategy: Creating Value for
     Target Customers
       Market Targeting
Creating Value for Target
       Customers
  Evaluating Market Segments
• Important to collect and analyse data on
  segment sales, growth rates and expected
  profitability
• Companies look at three (3) factors in
  evaluating market segments
    • Segment Size and Growth
    • Segment structural attractiveness
    • Company objectives and resources
Business Segmentation Process
Selecting Target Market Segments
• After concise segment evaluations, decide on
  particular segments to target
• Target Market: A set of buyers sharing a
  common need or characteristics which the
  company decides to serve
• Marketing Target Strategies vary from very
  broad to being very specific
     •   Undifferentiated Marketing (Mass Marketing)
     •   Differentiated Marketing (Segmented Marketing)
     •   Concentrated Marketing (Niche Marketing)
     •   Micro Marketing (Local or Individual Marketing)
 Marketing Targeting Strategies
• Undifferentiated: A market coverage strategy
  where the company ignores market segment
  differences and selects to target the whole
  market – focuses on common needs of
  customers
• Differentiated: A market coverage strategy
  where the company targets several market
  segments and provides separate offers for each
  segment – focuses on differentiated needs of
  customers
 Marketing Targeting Strategies
• Concentrated: A market coverage strategy
  where the company targets a dominant share of
  one or a few select segments – focuses on
  serving niches
• Micro Marketing: A market coverage strategy
  where the company focuses on tailoring
  products and programs to the needs of
  individuals and local groups
     • Local Marketing – tailoring brands and promos to needs and
       wants of locals in cities, suburbs, stores
     • Individual Marketing - tailoring brands and promos to needs
       and wants of individual customers e.g. one-on-one marketing
 Choosing Targeting Strategies
• Market targeting strategies are dependent
  on:
    •   Company Resources
    •   Product Variability
    •   Product Life Cycle Stage
    •   Market Variability
    •   Competitors’ Marketing Strategies
 Differentiation and Positioning
• Marketers plan positions to give their products
  advantages in selected target markets through
  marketing mixes
• Product Positioning: The way the product is
  defined by consumers on important attributes –
  the position it occupies in a consumer’s mind
  compared to competing products
• Consumers organise products, services, and
  companies and “position” them in their minds
• Marketers should not leave their product’s
  positioning to chance
   Differentiation and Positioning
               Strategy
• A brand’s positioning must serve the
  needs and preferences of well defined
  target markets
• Differentiation and Positioning task
  consists of three steps:
    • Identifying possible Value Differences and
      Competitive Advantages
    • Choosing the right competitive advantage
    • Selecting an overall positioning strategy
Differentiation and Positioning
            Strategy
     Identifying Possible Value
    Differences and Competitive
             Advantages
• Marketers must understand customer’s
  needs better than their competitors
• Marketers need to deliver more customers
  value to gain a competitive advantage
• A company has to live up to its promises
  and not make empty promises
• A company can differentiate through its
  products, services, channels, the people it
  employs and its image
  Choosing the Right Competitive
           Advantage
• This entails choosing the number of differences
  to promote and which specific ones to promote
• Number of Differences to Promote
     • Every company should have a Unique Selling Point (USP)
     • Each brand must have its own main USP
• Differences to Promote
     • Not all differences are great differentiators
     • A great difference satisfies the following: important,
       distinctive, superior, communicable, pre-emptive, affordable,
       profitable
  Selecting An Overall Positioning
             Strategy
• Full position of a brand is called the brand’s
  Value Proposition
• Value Proposition: the full mix of benefits which
  differentiates and positions the brand
• Possible Value Propositions
     •   More for More
     •   More for the same
     •   The same for Less
     •   Less for Much Less
     •   More for Less
Positioning Map
Product Positioning
           Positioning Statement
• Positioning Statement: A statement which summarises
  the company or the brand’s positioning
• The statement incorporates
      •   The need
      •   Target Segment
      •   The brand
      •   The concept
      •   The point of difference
• The brand’s superiority is outlined in its point of
  difference
• All the company’s marketing mix effort must support the
  positioning strategy
See you next time.

    Cheers Guys!

								
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