Lecture unit 03 - Customer-cenntric marketing strategy Flashcards
What is marketing strategy?
- is the overall game plan for reaching prospective leads and
- turning them into customers of the products or services a business offers
What are the key steps in the marketing process overview?
- Analysis: 5 C Analysis: –>Understand value
- Strategy: Segmentation & Targeting –>Create value
- Plan: –>Delivering value
–>Monetazitation
What is a market segment?
= A market segment consists of consumers who respond in a similar way to a given set of marketing eefects
–>Companies should foucs their efforts on meeting distinct needs of individual segments
How is market segmentation defined?
And what are the different ways consumers can be grouped?
Dividing a market into distinct groups of buyers with different needs, characteristics
Ways:
- Geographic: Country, City
- Demographic: Gender, Age, Household income
- Psychograpic: Lifestyle, Traits
- Behavioral: Price sensitivity
What are the criteria for effective segmentation?
- Measurable -> data is available
- Accessible -> people can be reached
- Profitable -> include segment margins, is segmentation profitable ?
- Differentiable -> are segments different?
- Actionable -> do we get different responses from the segments
+ aligned with corporate strategy
+ provide value to business
What are the strategies recommended by Kotler’s Model of Segmentation Alternatives ?
- One-segment concentration
- Selective specialization,
- Market specialization
- Product specialization
- Full market coverage
What is one-segment concentration? (Kotler’s Model of Segmentation Alternatives)
Concentrate in one market segment and target it with one product or service
Example: Rolex
What is selective specialization strategy? (Kotler’s Model of Segmentation Alternatives)
Reach out to different segments with different products
Example: P&G
What is market specialization strategy? (Kotler’s Model of Segmentation Alternatives)
Concentrate in one market segments and provide a pool of products and services that cover the different needs the segment has
Example: Lorial Paris
What is product specialization strategy? (Kotler’s Model of Segmentation Alternatives)
Offer one product that is adapted to the specific requirements of each segment
Example: Mercedes Benz: G-Wagon, Transpoerter, A1, Limousine
What is the full market coverage strategy? (Kotler’s Model of Segmentation Alternatives)
Cater the entire market in a differentiated or undifferentiated way
Example: Dell –>Differentiated
Coca Cola –>undifferentiated
What are the 3 questions important for segmentation?
- How far do we go with segmentation?
- What is the right level of segmentation?
- How can the ROI and benefit be optimized?
When does segmentation not make sense?
when:
- room for segmentation is limited
- customers have homogenous preferences
Why is segmentation important? regarding customers?
- to offer customers exactly what they want based on their needs
- to be able to differentiate against competition
What does segmentation also imply?
(Disadvantages of segmentation or issues)
- additional production costs
- Commercialization costs
- Tradeoff: benefits vs. costs
What is targeting?
Targeting is the decision of a company about which segment to address and in which way
What does targeting require?
- Segment to address
- Targeting Strategy
- Further company- and market
related decision criteria
To determine who to address: On what do we assess the market segments?
- Segment size and growth
- Segment structural attractiveness (competition, substitutes, power of buyers/suppliers)
- Company´s long-term objectives and resources
TO determine how to address –>Companies can follow different strategies:
What are the targeting strategies?
also explain
- Undifferentiated Marketing: Marketing Mix target total market
- Differentiated Marketing: Different marketing mix for each segment
- Concentrated (Niche) Marketing: Only focus marketing mix on one segment or a few
- Micromarketing: Different marketing mix for each individual
Factors to consider when choosing a target marketing strategy?
- COmpany resources
- Market visibility
- Degree of product variability
- Product life-cyle
- Competitor´s marketing strategy
What is differentiation and what is the goal?
= is the provision [Bereitstellung] of a product with a pool of attributes/values that make it perceived as something different than others
Goal: provided a product to the customer in a more convenient way than competition
What are the two levels of differentiation?
- Among competitors offering similar products
- Among different products that the same manufactures is selling to different market segments
What are the different differentiation strategies?
- Product attributes
- Associated services
- Staff & employees
- Research & development
- Brand image
What is the value proposition?
= comprises of the differntiated attributes of a brand/product and the set of benefits that the firm promises to deliver
