Steps in designing cust-driven mktg strategy

Steps in designing cust-driven mktg strategy

1. Segmentation: dividing a market into smaller segment that can be reached more efficiently with diff. mktg strategy

   • Consumer market
     • Geographic: nations, regions states, countries cities
       • Ex: McDonald's have many stores but may have diff. product for diff country like Islamic country no pig
     • Demographic
       • Age
         • Ex: Disney Cruises Lines target families with child but Viking River Cruises offer tours for older-adult & singles
       • Gender
         • Ex: Duck Scarves by Vivy Yusoff targets women
       • Income
         • Ex: Hilton Hotel range their room package based on ranges of price
     • Psychographic
       • Social class
       • LIfestyle
         • Ex: CK, a fashion footwear boutique consider themselves not only for a fashion specialist but as provider of a new lifestyle to their cust.
       • Personality
         • Ex: Levi's segment their type of jean's cutting
     • Behavioral
       • Ocassion
         • Ex: Candy, flowers, cards are on sale during Mother's Day
       • Uses: markerters want to retain regular cust. , attract potential nonuser, reinvigorate relationship with ex-user
       • Loyalty status
       • Usage rate: grouped into light, medium, regular users
   • Business market
     • Same as consumer market but add:
       • -cust. operating charac -purchasing approach -situational factors -personal factors
   • International market
     • Geographic
     • Economic
     • Political & legal: monetary regulations, stability of gov
     • Cultural: common languages, religion

2. Targeting: process of evaluating each market segment's attactiveness & selecting one/more segments to enter. The markerters can target very broadly very narrowly or somewhere in between

   • Undifferentiated: A company decides to ignore market segment diff. & target the whole market with one offer. They focus on what common than what is diff. They will design a product that will appeal to the largest number of buyers
     • Ex: candy bars sweets
   • Diffrentiated: targets several different market segments and designs separate offers for each. Develops separate marketing programs for several segments of the market.
     • Ex: This is a costly approach that is usually reserved for larger firms such as Nike, Toyota, Honda. Costly bcs requires extra mktg research forecasting, production process, specialists
   • Concentrated: offering one or more products to a single segment.
     • Ex: often useful for smaller firms that do not have the resources or the desire to be all things to all people. But, PepsiCo developed Amp energy drink & purchased SoBe & Izze Brands of enhanced waters & juices. Bcs market for energy drinks & juices increase while carbonated soft drinks decline
   • Micromktg: issuing products and marketing programs to suit the tastes of specific individuals and locations
     • Individual mktg: tailoring brands and promotions to the needs and preferences of individual customers
       • Ex: tailor custom-made suit (Jovian) , shoes, cabinet,
     • Local marketing: tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.
       • Ex: Wallmart stores near offices contain ready made meals for busy workers

3. Differentiation & positioning: attributes—the way the product occupies in consumers’ minds relative to competing products.

   • 1. Identify a set of differentiating competitive advantages upon which to build a position
     • Competitive advantage: an advantage over competitors gained by offering greater cust. value, either by lowering price/provide more benefits that justify the high price
     • Differentiation based on ;
       • Product differentiation: brands can be differentiated on features, performance, style or design
         • Ex: Rolex, Rado
       • Services differentiation: through speed, convenient or careful
         • Ex: Poslaju, GDex
       • Channel differentiation: through channel coverage, expertise and performance
         • Ex: Sg. airline
       • People differentiation: through trained workers
         • Ex: Disney famous with their frindly and upbeat
   • 2. Choose the right competitive advantage
     • Based on important, distinctive, communicable, profitable
   • 3. Developing a positioning statement: the company must take a strong action to deliver and commnuicate the desired position to target the consumers
     • Ex: KFC-it's finger lickin' good, McD- i'm lovin' it

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