Marketing Strategy

1
Marketing Strategy

• Chapter 7

2
Marketing Strategy
Customer Selection
Value Proposition
Segmentation
Differentiation
Customer Value
Positioning
Targeting
3
Segmentation

• Geographic
• Demographic
• Age and life cycle
• Gender
• Income
• Psychographic
• personality

4
Segmentation

• Behavioral
• Occasion segmentation (e.g., orange juice as a
  morning beverage)
• Benefits sought (e.g., healthy vs. trendy)
• User status (nonusers, exs, first-timers,
  regulars, potential users)
• Usage rate (heavy, medium, low)
• Loyalty status (loyals vs. switchers 80/20 rule)

5
Multivariate Segmentation

• PRIZM NE (New Evolution) system
• Claritas
• Experian
• shotguns and pickups, city startups, old
  glories, etc.

6
Other Segmentation Formats

• B-2-B markets
• All B-2-C strategies
• Operating characteristics
• Purchasing approaches
• Situational factors
• Personal characteristics
• International markets
• Geographic
• Economic
• Political/legal
• Cultural factors

7
Effective Segmentation

• Measurable
• Accessible
• Substantial
• Differentiable
• Actionable

8
Market Targeting

• Evaluate market segments
• Size and growth potential
• Structural attractiveness
• Companys objectives and resources
• Select market segments
• Undifferentiated marketing (e.g., Coke)
• Differentiated marketing (e.g., Gap Inc)
• Concentrated (niche) marketing (e.g.,Southwest)
• Micromarketing
• Local (e.g., Wal-Mart)
• Individual (e.g., Dell TiVo)

9
Choosing a Targeting Strategy

• Company resources
• Product distinctiveness
• Product life-cycle stage
• Market variability
• Competitors strategies

10
Differentiation

• Product (e.g., Mercedes)
• Services (e.g., Charles Schwab)
• Channel (e.g., Esurance)
• People (e.g., Disney)
• Image (e.g., Nike)

11
Choosing the Right Competitive Advantage

• One or more unique selling propositions?
• Differences should be
• Important
• Distinctive
• Superior
• Communicable
• Pre-emptive
• Affordable
• Profitable

12
Positioning

• Value proposition the full positioning of a
  brand

Price
same
less
more
more
Home Depot
Mercedes
Lexus
Benefits
same
Wal-Mart
less
Kia
13
Positioning

• Positioning Statement
• To (target segment and need) our (brand) is
  (concept) that (differentiation).