5. Market segmentation

Question 1

Customer value-driven marketing strategy steps

Answer 1

1. Segmentation
   - divide total market into smaller segments
   - geographic, demographic, psychographic, behavioural
2. Targeting
   - select segments to enter
   - evaluate target segment: size & growth, segment structural attractiveness, company objectives & resources
   - market coverage strategy: undifferentiated marketing, differentiated marketing, concentrated (niche) marketing, micromarketing
3. Differentiation
   - differentiate market to create superior customer value
   - by:
   product; features, performance, style, design
   service; speed, convenience
   channel; how company design its channel’s coverage & performance
   people; hiring & training better staff than competitors
   image; convey unique benefits & distinctive image
4. Positioning
   - position market offering in minds of target consumers

more for more| more for same| more for less
——————————————————————
same for more| | same for less
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less for more| less for same| less for much less

Question 2

Positioning statement

Answer 2

To (target seg), (brand) is (concept) that (point of difference).