Creating Value for Target Customers
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Transcript of Creating Value for Target Customers
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Creating Value for Target Customers
LECTURE-12
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Market Targeting
Differentiation and Positioning
Topic Outline
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Market Targeting
Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve
Selecting Target Market Segments
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Market Targeting
Segment size and growth Segment structural attractiveness Company objectives and resources
Evaluating Market Segments
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Market Targeting
Undifferentiated marketing targets the whole market with one offer Mass marketing Focuses on common needs rather than
what’s different
Target Marketing Strategies
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Market Targeting
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
Target Marketing Strategies
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Market Targeting
Concentrated marketing targets a small share of a large market
Limited company resources
Knowledge of the market More effective and
efficient
Target Market Strategies
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Marketing Targeting
Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations
Local marketing Individual marketing
Target Market Strategies
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Market Targeting
Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups
Cities Neighborhoods Stores
Target Market Strategies
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Market Targeting
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
Target Market Strategies
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Four levels of Micromarketing
• Segments Marketing• Niche Marketing• Local areas Marketing• Individuals Marketing
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What is a Market Segment?
A market segment consists of a group of customers who share a similar set
of needs and wants.
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Niche Marketing
A niche is more narrowly defined customer group seeking a distinctive mix of benefits.
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Niche Marketing…
RevolutionRevolution pioneered the concept of
“plus sized fashion”, and is very proud to be a brand that accepts women as
they are.http://www.revolution.bz/aboutus.php
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Market Targeting
Depends on: Company resources Product variability Product life-cycle stage Market variability Competitor’s marketing strategies
Choosing a Target Market
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Market Targeting
Benefits customers with specific needs Concern for vulnerable segments
Children Cigarettes
Socially Responsible Target Marketing
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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
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Differentiation and Positioning
Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions
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Differentiation and Positioning
Identifying a set of possible competitive advantages to build a position
Choosing the right competitive advantages
Selecting an overall positioning strategy Communicating and delivering the
chosen position to the market
Choosing a Differentiation and Positioning Strategy
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Differentiation and Positioning
Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices
Identifying Possible Value Differences and Competitive Advantages
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Differentiation and Positioning
Identifying a set of possible competitive advantages to build a position by providing superior value from:
Choosing a Differentiation and Positioning Strategy
Product differentiation
Service differentiation
Channel differentiationPeople differentiation
Image differentiation
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Differentiation and Positioning
Difference to promote should be:
Choosing the Right Competitive Advantage
Important Distinctive Superior
Communicable Preemptive Affordable
Profitable
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Differentiation and Positioning
Value proposition is the full mix of benefits upon which a brand is positioned
Selecting an Overall Positioning Strategy
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Differentiation and Positioning
To (target segment and need) our (brand) is (concept) that (point of difference)
Developing a Positioning Statement
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Communication and Delivering the Chosen Position
Choosing the positioning is often easier than implementing the
position.
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Bibliography Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall
Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc.
Principles and Practices of Marketing by Jobber, D. 4th edition, McGraw Hill International.
Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.
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The End
“Judge your success by the degree that you are enjoying
peace, health and love”