Marketing:AnIntroductionThirteenthEditionChapter6CustomerValue-DrivenMarketingStrategy:CreatingValueforTargetCustomersCopyright?2017,2015,2013PearsonEducation,Inc.AllRightsReservedLearningObjectives(1of4)6-1.

Definethemajorstepsindesigningacustomervalue-drivenmarketingstrategy:marketsegmentation,targeting,differentiation,andpositioning6-2.Listanddiscussthemajorbasesforsegmentingconsumerandbusinessmarkets.LearningObjectives(2of4)6-3.Explainhowcompaniesidentifyattractivemarketsegmentsandchooseamarket-targetingstrategy.6-4.Discusshowcompaniesdifferentiateandpositiontheirproductsformaximumcompetitiveadvantage.FirstStop:Dunkin’DonutsTargetingtheAverageJoeDunkin’DonutstargetseverydayJoeswhojustdon’tgetwhatStarbucksisallabout.LearningObjective6-1Definethemajorstepsindesigningacustomervalue-drivenmarketingstrategy:marketsegmentation,targeting,differentiation,andpositioning.Figure6.1-DesigningaCustomerValue-DrivenMarketStrategyLearningObjective6-1SummaryCustomervalue-drivenmarketingstrategyIdentifyingwhichcustomerstoserveDeterminingavaluepropositionMarketsegmentationandmarkettargetingDifferentiatingthemarketofferingPositioninginthemindsoftargetcustomersRightrelationshipswiththerightcustomersLearningObjective6-2Listanddiscussthemajorbasesforsegmentingconsumerandbusinessmarkets.Table6.1-MajorSegmentationVariablesforConsumerMarketsSegmentationVariableExamplesGeographicNations,regions,states,counties,cities,neighbourhoods,populationdensity(urban,suburban,rural),climateDemographicAge,life-cyclestage,gender,income,occupation,education,religion,ethnicity,generationPsychographic

Socialclass,lifestyle,personalityBehavioralOccasions,benefits,userstatus,usagerate,loyaltystatus

GeographicandDemographicSegmentationGeographicsegmentation:DividingamarketintodifferentgeographicalunitsSuchasnations,states,regions,counties,cities,orneighborhoodsDemographicsegmentation:DividingamarketintosegmentsbasedonvariablesSuchasage,life-cyclestage,gender,income,occupation,education,religion,ethnicity,andgenerationDemographicSegmentationAgeandlife-cyclesegmentationDividingamarketintodifferentageandlife-cyclegroupsGendersegmentationDividingamarketintodifferentsegmentsbasedongenderIncomesegmentationDividingamarketintodifferentincomesegmentsPsychographicSegmentation(1of2)MarketerssegmenttheirmarketsusingvariablessuchasSocialclassLifestylePersonalitycharacteristicsTheproductspeoplebuyreflecttheirlifestyles.PsychographicSegmentation(2of2)VFCorporationoffersaclosetfullofmorethan

30premiumlifestylebrands.BehavioralSegmentation(1of3)Occasionsegmentation:Segmentsdividedaccordingtooccasions,whenthebuyersGettheideatobuyMaketheirpurchaseUsethepurchaseditemBenefitsegmentation:Segmentsdividedaccordingtothedifferentbenefitsthatconsumersseekfromtheproduct.BehavioralSegmentation(2of3)Schwinnmakesbikesforeverybenefitsegment.BehavioralSegmentation(3of3)Userstatus:Marketscanbesegmentedintononusers,ex-users,potentialusers,first-timeusers,andregularusers.Usagerate:Marketscanbesegmentedintolight,medium,andheavyproductusers.Loyaltystatus:Consumerscanbeloyaltobrands,stores,andcompanies.MultipleSegmentationBasesSegmentationbaseshelpcompaniestoIdentifysmaller,better-definedtargetgroupsIdentifyandunderstandkeycustomersegmentsReachcustomersmoreefficientlybytailoringmarketofferingsandmessagestocustomers’specificneedsSegmentationsystemshelpmarketerssegmentpeopleandlocationsintomarketablegroupsoflike-mindedconsumers.SegmentingBusinessMarketsConsumerandbusinessmarketsusemanyofthesamevariablesforsegmentation.VariablesusedbybusinessmarketersforsegmentationincludeOperatingcharacteristicsPurchasingapproachesSituationalfactorsPersonalcharacteristicsSegmentingInternationalMarketsVariablesincludeGeographiclocationEconomicfactorsPoliticalandlegalfactorsCulturalfactorsIntermarket(cross-market)segmentation:GroupingconsumerswithsimilarneedsandbuyingbehaviorsirrespectiveoftheirlocationRequirementsforEffectiveSegmentationMeasurableAccessibleSubstantialDifferentiableActionableLearningObjective6-2SummaryConsumermarketsegmentationGeographic,demographic,psychographic,andbehavioralBusinessmarketsegmentationDemographics,operatingcharacteristics,purchasingapproaches,situationalfactors,andpersonalcharacteristicsRequirementsforeffectivesegmentationMeasurable,accessible,substantial,differentiable,andactionableLearningObjective6-3Explainhowcompaniesidentifyattractivemarketsegmentsandchooseamarket-targetingstrategy.MarketTargeting(1of2)EvaluatingthevarioussegmentsbasedonSegmentsizeandgrowthSegmentstructuralattractivenessCompanyobjectivesandresourcesSelectingtargetmarketsegmentsTargetmarket:SetofbuyerssharingcommonneedsorcharacteristicsthatthecompanydecidestoserveFigure6.2-Market-TargetingStrategiesMarketTargeting(2of2)ThePUMAFactorysneakercustomizationWebsiteChoosingaTargetingStrategyFactorstoconsiderCompanyresourcesProductvariabilityProduct’slife-cyclestageMarketvariabilityCompetitors’marketingstrategiesSociallyResponsibleTargetMarketingControversyandconcernoftargetmarketingVulnerableordisadvantagedconsumersaretargetedwithcontroversialorpotentiallyharmfulproducts.Sociallyresponsibletargetmarketingshouldbedonetoserveboththeinterestsofthecompanyandtheinterestsofthosetargeted.LearningObjective6-3SummaryFourmarket-targetingstrategiesUndifferentiated(ormass),differentiated,concentrated(orniche),andmicromarketingMicromarketingincludeslocalandindividualmarketing.LearningObjective6-4Discusshowcompaniesdifferentiateandpositiontheirproductsformaximumcompetitiveadvantage.DifferentiationandPositioning(1of2)Firmsmustdecidewhichsegmentstotargetandonthevalueproposition.Productpositionisthewayaproductisdefinedbyconsumersonimportantattributes.DifferentiationandPositioning(2of2)IKEAdoesmorethanjustsellaffordablehomefurnishings;it’sthe“Lifeimprovementstore.”Figure6.3-PositioningMap:LargeLuxurySUVsChoosingaDifferentiationandPositioningStrategyIdentifyingPossibleValueDifferencesandCompetitiveAdvantagesCompetitiveadvantage:AnadvantageovercompetitorsgainedbyofferinggreatercustomervalueeitherbyHavinglowerprices,orProvidingmorebenefitsthatjustifyhigherpricesFirmscandifferentiateintermsofproduct,services,channels,people,orimage.ChoosingtheRightCompetitiveAdvantagesNumberofdifferencestopromoteDevelopingauniquesellingproposition(USP)foreachbrandandstickingtoitPositioningonmorethanonedifferentiatorWhichDifferencestoPromoteImportantDistinctiveSuperiorCommunicablePreemptiveAffordableProfitableFigure6.4-PossibleValuePropositionsWinningValuePropositionsValuepropositionDescriptionMoreformoreProvidesthemostupscaleproductorserviceMoreforthesameHighqualityatlowerpricesMoreforlessBestwinningpropositionThesameforlessGivesagooddealLessformuchlessMeetingconsumers’lowerperformanceorqualityrequirementsatalowerpriceDevelopingaPositioningStatementPositioningstatement:SummarizescompanyorbrandpositioningFormat:To(targetsegmentandneed)our(brand)is(concept)that(pointofdifference).EvernotePositioningStatement“Tobusymultitaskerswhoneed

helprememberingthings,Evernoteisadigitalcontentmanagementapplicationthatmakesiteasytocaptureandremembermomentsandideasfromyoureverydaylifeusingyourcomputer,phone,tablet,andtheWeb.”CommunicatingandDeliveringtheChosenPositionAllthecompany’smarketingmixeffortsmustsupportthepositioningstrategy.Maintainthepositionobtained