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Date Submitted: 10/09/2016 01:34 AM
Chapter 6 – Customer-Driven Marketing Strategy: Creating Value for Target Customers
Customer-driven marketing strategy
* Move away from mass marketing and towards target marketing
* Identifying market segments, selecting one or more, and developing products and marketing programs tailored to each
* Four main steps in customer driven marketing strategy
* Market segmentation involves dividing a market into smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes
* Market targeting is evaluating each market segment’s attractiveness and selecting one or more market segments to enter
* Differentiation is differentiating the firm’s market offering to create superior customer value
* Positioning consists of arranging for a market offering to occupy a clear distinctive and desirable place relative to competing products in the minds of target consumers
Market segmentation
Segmenting consumer markets
* Geographic segmentation
* Dividing the market into different geographical units such as nations, regions, states, counties cities or neighbourhoods
* Localisation of products
* Demographic segmentation
* Dividing the market into segments based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality
* Most popular bases for segmenting customer groups
* Needs want and usage rates vary closely with demographic variables
* Easy to measure
* Age and life-cycle stage
* Careful to guard against stereotypes
* Gender
* A neglected gender segment can offer new opportunities in markets
* Income segmentation
* Target affluent customers
* Conspicuous consumption
* Psychographic segmentation
* Divide byers into different segments based on social class, lifestyle or personality...