Principles of marketing Customer Driven Marketing Strategy Customer

Principles of marketing

Customer Driven Marketing Strategy

Customer Driven Marketing Strategy Decide on a value proposition Select customer to serve Segmentation Divide the total market into smaller segments Targeting Select the segment or segments to enter Create Value for Target customers Differentiation Differentiate the market offering to create superior customer value Positioning Position the market offering in the minds of target customers

Market Segmentation • Market segmentation addresses the first simple sounding marketing question: what customers will we serve? The answer will be different for each company. (PC customers and Best Western customers) • Geographic segmentation Dividing a market into different geographical units such as nations, states, regions, countries, cities, or neighborhoods. • Demographic Segmentation Dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality • Age & life-cycle segmentation Dividing a market into different age and life-cycle groups. (insurance) • Gender Segmentation • Income Group Segmentation

Localization

Localization

Psychographic Segmentation • Psychographic segmentation divides buyers into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic group can have very different psychographic makeups. • Behavioral Segmentation divides buyers into groups based on their knowledge, attitude, uses, or responses to a product. Many marketers believe that behavior variables are the best starting point for building market segments. – – – Occasion segmentation Benefit segmentation User status Usage rate Loyalty status • Using Multiple Segmentation Bases • Inter (cross) Market Segmentation

Requirements for Effective Segmentation • • • Measurable Accessible Substantial Differentiable Actionable Source: Google search

Market Targeting • Target Market A set of buyers sharing common needs or characteristics that the company decides to serve. • Undifferentiated Marketing A market-coverage strategy in which a firm decides to ignore market segment difference and go after the whole market with one offer. • Differentiated Marketing A market-coverage strategy in which a firm decides to target sever market segments and designs separate offers for each. • Concentrated (niche) Marketing A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.

Market Targeting • Micro Marketing The practice of tailoring products & marketing program to the needs and wants of specific individuals & local customer groups-includes “local marketing” and individual marketing • Local Marketing Tailoring brands & promotions to the needs and wants of local customer groupscities, neighborhoods, and seven specific stores • Individual Marketing Tailoring products & marketing programs to the needs and preferences of individual customer-also labeled “one-to-one marketing” , “customized marketing”, and “markets -of-one marketing. ”

Choosing a Targeting Strategy • Product • Resources • Target Market

Differentiation & Positioning • Differentiation is how product will create differentiated value for targeted segments and • A product position is the way the product is defined by consumers on important attributes – the place product occupies in consumers’ mind relative to competing products. “Products are created in factory, but brands are created in the mind” Source: Map “Google search”

Perception map Source Google Search

PIEDMC Perception Mapping High Quality Service * New Allottees * Law abiding Allottees * Old issues addressed * Directly deal with PIEDMC Friendly Beauracratic * Defaulters * Law breaking Allottees • Old issues not addressed • Water, Electricity, O&M * Come through SIWA • Land, access etc Low Quality Service

Choosing a Differentiation & Positioning Strategy • Competitive advantage An advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices – How many differences to promote – Which differences to promote • Important, Distinctive, Superior, Communicable, Preemptive, Affordable, Profitable • Value Proposition The full positioning of a brand – the full mix of benefits upon which it is positioned

Choosing a Differentiation & Positioning Strategy Winning value proposition Losers

• Positioning Statement A statement that summarizes company or brand positioning – it takes this form: to (target segment and need) our (brand) is (concept) that (point-ofdifference)

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