Strategic Marketing

1. Imperatives for Market-Driven Strategy

2. Markets and Competitive Space
3. Strategic Market Segmentation
4. Strategic Customer Relationship Management
5. Capabilities for Learning about Customers and Markets
6. Market Targeting and Strategic Positioning
7. Strategic Relationships
8. Innovation and New Product Strategy
9. Strategic Brand Management
10. Value Chain Strategy
11. Pricing Strategy
12. Promotion, Advertising and Sales Promotion
Strategies
13. Sales Force, Internet, and Direct Marketing Strategies
14. Designing Market-Driven Organizations
15. Marketing Strategy Implementation And Control
 Chapter 3

Strategic
Market
Segmentation
 Strategic market segmentation (1)
* Levels and types of market
segmentation

3-3
Levels and types of market segmentation
Vision
Strategic Strategic intent
Segmentation Product benefits
Resource allocation
Alignment
Managerial Planning
Segmentation
Marketing programs
Operational - Advertising
Segmentation - Sales
- Distribution

3-4
 Strategic market segmentation (2)
* Market-driven strategy and
segmentation
* Market segmentation, value opportunities
and new market space
* Market targeting and strategic positioning

3-5
Segmentation and Market-Driven Strategy
SEGMENTS

VALUE
OPPORTUNITIES

CAPABILITIES/
SEGMENT
MATCH
TARGET(S)

POSITIONING
STRATEGY 3-6
 Strategic market segmentation (3)
* Market-driven strategy and
segmentation
* Market segmentation, value opportunities
and new market space
* Market targeting and strategic positioning
* Activities and decisions in market
segmentation

3-7
Market Segmentation Activities and Decisions
Market to be
Segmented
Strategic
Analysis Decide How
of Segments to Segment

Finer Form
Segmentation Segments
Strategies
3-8
 Strategic market segmentation (4)
* Market-driven strategy and
segmentation
* Market segmentation, value opportunities
and new market space
* Market targeting and strategic positioning
* Activities and decisions in market
segmentation
* Defining the market to be segmented

3-9
 Product Variant Segmentation
Product Type Segmentation
Generic Segmentation
3-10
 Strategic market segmentation (5)
* Identifying market segments
* Segmentation variables
* Characteristics of people and organizations
* Consumer markets
* Organizational markets
* Product use situation segmentation
* Buyers’ needs and preferences
* Consumer needs
* Attitudes
* Perceptions
* Purchase behavior

3-11
 Illustrative Segmentation Variables
Consumer Industrial/
Markets Organizational Markets
Characteristics Age, gender, income, Type of industry, size,
of people/ family size, lifecycle geographic location,
organizations stage, geographic corporate culture, stage of
location, development, producer/
lifestyle intermediary
Use situation Occasion, importance of Application, purchasing
purchase, prior Procedure (new task,
experience with product, modified rebuy, straight
user status rebuy
Buyers’ needs/ Brand loyalty status, brand Performance requirements,
preferences preference, benefits sought, brand preferences, desired
quality, proneness to make features, service
a deal requirements
Purchase Size of purchase, Volume, frequency
behavior frequency of purchase of purchase

3-12
 Strategic market segmentation (6)
* Forming market segments
* Requirements for segmentation
* Response differences
* Identifiable segments
* Actionable segments
* Cost/benefits
* Stability
* Approaches to segment identification
* Customer group identification
* Forming groups based on response differences

3-13
Approaches to Segment Identification
CUSTOMER
IDENTIFIERS
RESPONSE
OF CUSTOMER
PROFILE
GROUPS

 Characteristics
 Use Situation

of People and
Organizations

 Buyers Needs
and Preferences

3-14
Illustrative Consumer Perception Map
Expensive
GROUP
• Brand E II • Brand A
• Brand B
GROUP
V High
Low GROUP
Quality I Quality
GROUP
III • Brand C
• Brand D
GROUP
IV
Inexpensive
3-15
Strategic Analysis of Market Segments

Customer
Analysis
Financial and Competitor
Market
Analysis
Attractiveness

Positioning
Analysis
3-16
 Segmentation “Fit” for Implementation
Segment Attractiveness
and Internal Compatibility
Internal Compatibility
High Low

Attractive segments Attractive segments

High that match with but with poor match
company with company
capabilities capabilities
Market Segment
Attractiveness
Unattractive segments Unattractive segments
Low but with match to that do not match with
company company capabilities
capabilities

3-17