Customer-Driven Marketing Strategy

Creating Value for Target Customers

• Nowadays, marketer can’t apply the same strategies to
all buyers.

• It is because the buyer are too numerous, too widely

scattered and too varied in their needs and buying
practices.

• So, marketers have to vary widely in their abilities in

serve different segment of the market.

• Thus, marketer need to change from mass market into

target market.

• There are 4 steps in designing the marketing

strategies.
STEPS IN DESIGNING STRATEGIES

Select customer to Decide on the value

serve proposition
SEGMENTATION
DIFFERENTIATION
Differentiate the
Divide the total
market offer from
market into
competitor and
smaller segment
create superior
value
TARGETING POSITIONING
Position the market
Target the offering in the minds
segment to enter of target customers
MARKET SEGMENT

MARKET TARGET
KIDS

YOUNG/ADULT
KIDS LOVE TOYS!!!!
OLD SO, GIVE TOYS TO KIDS
IN HAPPY MEAL!!!

PROMOTION!!
!
DIFFERENCIATION

POSITIONING
 MARKET
SEGMENTATION
 Market Segment

 A subgroup of people or organizations sharing

one or more characteristics that cause them to
have similar product needs.
 Market Segmentation

 The process of dividing a market into

meaningful, relatively similar, identifiable
segments or groups.
 The Importance of
Market Segmentation
 Markets have a variety of product
needs and preferences

 Marketers can better define

customer needs

 Decision makers can define objectives

and allocate resources more accurately
Criteria for successful segmentation:
Clear differences in
consumer
preferences for a
product must exist.
•Difference
preferences for a
product must be
identifiable and
capable of being
related to
measurable
variables.
•The proposed
market segment
must have enough
size and purchasing
power to be
profitable.
•Companies must
be able to respond
to difference
preferences with an
appropriate and
profitable
marketing mix.
•The proposed
market segment
must be readily
accessible and
reachable with
targeted programs.
 Market Segmentation

Geographic location - based upon where people live

(historically a popular way of dividing markets)

Demographic - based upon age, gender and income

level (very often used)
 Market Segmentation

Psychographic / lifestyles - based on people’s

opinions, interests, lifestyles

Behavioral - based on consumer knowledge, attitudes,

uses, or responses to a product.
Bases for Market Segmentation
 Demographic Segmentation
Demographic Segmentation is the most common
approach to Market Segmentation
Variables are:
• gender (male/female)
•gender is an obvious way to divide the market into
segments since so many products are gender-specific
• clothing
 Demographic Segmentation

age
• age is another obvious way to divide the market into
segments since so many products are based upon
“time of life”
• diapers for babies
• toys for children
 Demographic Segmentation

•household (family - style) size

• Segmenting by the “stages in the family life

cycle”
• There are different buying characteristics of
people in each stage of the family
 Demographic Segmentation

•household (family - style) size

BUYING PATTERNS
• 0-5 young children
• 6-19 school children
• 20-34 young adults
• 35-49 younger middle-aged
• 50-64 older middle-aged
• 65+ seniors
• 80+ SUPER seniors
Family Life Cycle

Age

Marital Children
Status
 Demographic Segmentation

•income
• occupation
• education
Psychographic Segmentation

 Grouping customers together

based on social class, lifestyles
and psychological
characteristics (activities,
interests and opinions)
 Bases for
Psychographic Segmentation

Personality

Motives

Lifestyles
Psychographic
Segmentation

26
Psychographic Segmentation

 Lifestyle
How time is spent, Importance of things
around them, Beliefs, Socioeconomic
characteristics
 Personality

 Levi’s: youthful, rebellious, rugged, authentic.

 Behavioral Segmentation
Based on consumer knowledge, attitudes, uses,
or responses to a product.

 Occasions
 Benefits

 User Status

 Usage Rate

 Loyalty Status
 MARKET
TARGETING
 Market Targeting
Selecting Target Market Segments

 Target market consists of a set of buyers who

share common needs or characteristics that
the company decides to serve
 Market Targeting
Evaluating Market Segments


. growth
Segment size and
 Segment structural attractiveness

 Company objectives and

resources
 Market Targeting
Porter’s Five Force

Substitute Buyer
Products Power

Supplier
New Power
Entrants

Rivals
 Selecting Target Market Segment

• After evaluate different segment, company will target

the segment to serve.
• Buyer have unique need and want, so marketer will
separate them in different segment.
• Market targeting can be carry out in several different
level.

Micromarketing
Undifferentiated Differentiated Concentrate
(local or
(mass) (segmented) (niche)
individual
marketing marketing marketing
marketing)
 Market Targeting
Target Marketing Strategies

Undifferentiated marketing targets the whole

market with one offer
 Mass marketing
 Focuses on common needs rather
than what’s different
 Market Targeting
Target Marketing Strategies

Differentiated marketing targets several

different market segments and designs
separate offers for each
 Goal is to achieve higher sales and stronger
position
 More expensive than undifferentiated
marketing
 Market Targeting
Target Market Strategies

 Concentrated marketing targets a small share

of a large market
 Limited company resources

 Knowledge of the market

 More effective and efficient

 Marketing Targeting
Target Market Strategies

Micromarketing is the practice of tailoring

products and marketing programs to suit the
tastes of specific individuals and locations
 Local marketing

 Individual marketing
 Market Targeting
Target Market Strategies

Local marketing involves tailoring brands and

promotion to the needs and wants of local
customer groups
 Cities

 Neighborhoods

 Stores
 Market Targeting
Target Market Strategies
Individual marketing involves tailoring products and
marketing programs to the needs and preferences
of individual customers
 Also known as:

 One-to-one marketing
 Mass customization

 Markets-of-one marketing
 Market Targeting
Choosing a Targeting Strategy
Depends on:
 Company resources

 Product variability

 Product life-cycle stage

 Market variability

 Competitor’s marketing strategies

DIFFERENTIATION AND
POSITIONING
 Differentiation and Positioning
Product position is the way the product is defined
by consumers on important attributes—the place
the product occupies in consumers’ minds relative
to competing products
 Perceptions
 Impressions

 Feelings
 Differentiation and Positioning
 Positioning maps show consumer perceptions of
their brands versus competing products on
important buying dimensions
 Differentiation and Positioning
Choosing a Differentiation and
Positioning Strategy
Identifying a set of possible competitive advantages to
build a position by providing superior value from:

Product differentiation
Services differentiation
Channel differentiation
People differentiation
Image differentiation
 Differentiation and Positioning
Developing a Brand Positioning Statement

4 elements
1. To whom are you talking
• concise, but clearly defined
• attitudinal, behavioural and demographic
2.What category are you competing in
3.What is the unique proposition your brand is offering the
consumer
4.Why should the consumer believe that what you are
offering is credible
 Brand Positioning Statement

 To……………………………………………………
 X is the brand of …………………………………..

 That…………………………………………………

 because ……………………………………………
 SAFFOLA POSITIONING STATEMENT

To all urban males aged 45 and above suffering from

or prone to heart problems, Saffola is the brand of
cooking oil that reduces cholesterol, unlike regular
cooking oils. This is because it has the highest PUFA
content and is recommended by doctors
 Group Assignment
Submission Date: 25th October, 2023
• Take any product category with multiple brands in it& consider the top 3 brands in the
category
• For each brand, analyze the segmentation, targeting and positioning strategies
 which is the segment that it is targeting

 is the segmentation done geographically, demographically, psychologically or

behaviorally
 is the segmentation clear and easily understandable - show examples of its

advertising, packaging, point-of-sale material etc. to justify this

 is the positioning of the brand strong - unique & differentiated, appealing to its target

segment, difficult to copy etc. - analyse this and justify your conclusions
• Write out the positioning statement of each brand
• Make a comparative chart showing the key differences between these 3 brands in their STP
strategies
• Critically compare the three brands
 give your opinion on which brand/brands are doing a good job on STP, which are not

 if you have identified any areas of improvement/gaps, then give your

recommendations on what you would do to correct these issues if you were the
brand manager for each brand