Week 3

Topic 1: Competitive Marketing

Strategy: Design and Implementation

Learning Objectives Steps in customer-driven marketing strategy

Market segmentation

Targeting

Differentiation

Positioning

Topic 1: Competitive Marketing Strategy

Customer-driven Marketing Strategy Select customers to serve

Segmentation Targeting

Decide on a value proposition Differentiation Positioning

Create value for targeted customers

Topic 1: Competitive Marketing Strategy

Customer-driven Marketing Strategy:

Segmentation Differentiation

Targeting Positioning

Value

Market Segmentation:

1. Segmenting Consumer MarketsGeographic Segmentation

(Region/City Size/Density/Climate)

Topic 1: Competitive Marketing Strategy

Segmenting Consumer MarketsDemographic Segmentation

(Age/Sex/Family Size/Family life

Cycle/Income/Occupation/Education/Religion/Nati

onality)

Topic 1: Competitive Marketing Strategy

Segmenting Consumer MarketsPsychographic Segmentation

(Social Class/Lifestyles/Personality Characteristics)

Topic 1: Competitive Marketing Strategy

Segmenting Consumer MarketsBehavioural Segmentation

(Occasions/Benefits Sought/User Status/Usage

Rate/Loyalty Status)

Topic 1: Competitive Marketing Strategy

Segmenting Consumer MarketsHybrid Segmentation Includes attributes from empirical personal features,

personality, lifestyles and sociocultural values, attitudes and preferences regarding the product and usage and purchase behaviours.

Topic 1: Competitive Marketing Strategy

2. Segmenting Business Markets1. Geographic Segmentation

2. Demographic Segmentation

(Industry/Company Size)

3. Benefit Segmentation

(Benefits Sought/User Status/Usage Rate/Loyalty Status)

4. Additional Segmentation Variables

(Customer Operating Characteristics/Purchasing

Approaches/Situational Factors/Personal Characteristics)

Topic 1: Competitive Marketing Strategy

3. Segmenting International Markets1. Geographic Location (Grouping countries by regions)2. Economic Factors (Population income levels/Economic development)3. Political and legal Factors (Stability of government/Monetary regulations/Bureaucracy/Receptivity to foreign firms)4. Cultural Factors (Languages/Religions/Values and attitudes/Customs/Behavioural patterns)

Intermarket/Cross-market Segmentation

Topic 1: Competitive Marketing Strategy

Effective Segmentation

Measurable

Accessible

Substantial

Differentiable

Actionable

Topic 1: Competitive Marketing Strategy

Market Targeting Evaluating Market Segments

Selecting Target Market Segments

Socially Responsible Target Marketing

Topic 1: Competitive Marketing Strategy

Selecting Target Market Segments Undifferentiated/Mass Marketing Differentiated/Segmented Marketing Concentrated/Niche Marketing Micromarketing

Local MarketingIndividual Marketing

Topic 1: Competitive Marketing Strategy

Differentiation

Product differentiation (Ex: Heart Foundation ‘Tick’ mark)

Services differentiation (Ex: McDonalds)

Channel differentiation (Ex: Banks)

People differentiation (Ex: Singapore Airlines)

Image differentiation (Ex: Sofitel Hotels)

Topic 1: Competitive Marketing Strategy

Differentiation and Positioning Strategy

Identifying Possible Value Differences and

Competitive Advantages

Choosing the Right Competitive Advantages

How many differences to promote?

Which differences to promote?

Topic 1: Competitive Marketing Strategy

Differentiation and Positioning Strategy Selecting an Overall Positioning Strategy

More for more (Luxury brands Miele, Sofitel)More for the same (Lexus versus Mercedes/BMW)The same for less (Big W, Bunnings)Less for much less (Tiger Airlines, Two dollar stores)More for less

Developing a Positioning Statement

Topic 1: Competitive Marketing Strategy

Positioning Statement:

Topic 1: Competitive Marketing Strategy

Thank You!