customer value driven market strategy Flashcards
Name all of the steps of the customer value driven market strategy.
- Market Segmentation.
- Select target segments.
- Differentiation.
- Select an overall positioning strategy.
What is market segmentation?
Refers to dividing the market into distinct groups of consumers with different needs and characteristics who might require separate marketing strategies.
List major marketing bases
Geographic
Psychographic
Demographic
Behavioral
Geographic segmentation
Divide the market into different geographical units such as nations, cities or even neighbourhoods.
Demographic segmentation
Based on age, gender, income, occupation, race and religion.
Psychographic segmentation
Based on lifestyle or personality characteristics.
Behavioural segmentation
Based on consumer knowledge, attitudes, uses of a product or responses to a product.
What is meant by select target segments?
Refer to a set of consumers who share common needs or characteristics that the company decides to serve.
What are the criteria to evaluate target segments?
Size & Growth
Segment structural attractiveness
Company objectives & Resources
What is size and growth?
Refers to selecting the largest, fastest and most profitable segments.
What is segment structural attractiveness?
Refers to the absence of strong competitors & non-existence of substitute products.
Company objectives and resources
Answers the question of: Does the company have resources to succeed?
Name market COVERAGE strategies.
Undifferentiated marketing
Differentiated marketing
Micromarketing
Concentrated (niche) marketing
Undifferentiated marketing
When the company decides to ignore market segment differences and go after the whole market with one offer. (E.g. Copper)
Differentiated marketing
When the company decides to target several market segments and designs separate offers for each.
Concentrated(niche)
When the company goes after a large share of one or a few segments.
Micromarketing
Refers to tailoring products to the needs and wants of specific individuals.
What is differentiation?
Have a competitive advantage over competitors gained by offering greater customer value, either by having lower prices or by providing more benefits that justify higher prices.
Name all differentiations and its explanation.
Product differentiation through features, performance, style & design.
Services differentiation through speedy, convenient service
Channel differentiation through the way the company designs its channel’s coverage and performance.
People differentiate by hiring & training better staff than competitors do.
Image differentiation by conveying unique benefits & a distinctive image.
Name all winning value propositions/ positioning strategies.
More for more
More for the same
Same for less
Less for much less
More for less
More for more
Provides the most upscale product or service and charges a higher price to cover the higher costs
More for the same
Provides high quality products at lower prices. It can be used to attack a more for more positioning
Same for less
Gives a good deal to customers and it is used by discount stores to offer deep discounts based on superior purchasing power and lower-cost operations.
Less for much less
Meets consumers’ lower performance or quality requirements at a much lower price.
More for less
Best winning proposition and it is very difficult for companies to sustain such best-of-both positioning.
