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Building the right relationships with the right customers

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1 Building the right relationships with the right customers
Week 3

2 Ford’s Model T followed a mass market approach : "You can have any color you want, as long as it is black

3 STP (Segmentation, Targeting, Positioning)

4 Market Segmentation Division of total market into smaller, relatively homogeneous groups – kurtz, Boone – Dividing market into smaller groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes – Philip Kotler – Clustering people with similar needs into a “market segment” (a relatively homogeneous group of customers who will respond to a marketing a similar way) – Perreault, Cannon, McCarthy – Segmentasi berarti melihat pasar secara kreatif – Hermawan Kartajaya, Rethinking Marketing –

5 Segmentation Variables for Consumer Markets
: Product-related market

6 Segmentation Variables for Consumer Markets

7 This fridge with a built in TV is targeted to the owner who watches television in the kitchen and has a design that faces the fridge (behavioral variables) Nutrition bars are targeted to varying demographics including men, women and children (demographic variables)

8 Segmentation based on Gender

9 Segmentation based on Psychographic

10 Segmentation based on Behavioral

11 Segmentation based on Loyalty Status

12 International Markets
Segmentation for International Markets

13 Requirements for Effective Segmentation
To be useful, market segments must be: Measurable Accessible Substantial Differentiable Actionable

14 Target Market Target market consist of a set of buyers who share common needs or characteristics that the company decides to serve


16 Target Marketing Strategies
Undifferentiated marketing targets the whole market with one offer Mass marketing Focuses on common needs rather than what’s different Differentiated marketing targets several different market segments and designs separate offers for each Goal is to achieve higher sales and stronger position More expensive than undifferentiated marketing Concentrated marketing targets a small share of a large market Limited company resources Knowledge of the market More effective and efficient Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations Local marketing Individual marketing Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups Cities Neighborhoods Stores Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers Also known as: One-to-one marketing Mass customization Markets-of-one marketing Mass customization is the process through which firms interact one-to-one with masses of customers to design products and services tailor-made to meet individual needs. Has made relationships with customers important in the new economy. Provides a way to distinguish the company against competitors

17 Individual marketing

18 Individual Marketing (Customization)

19 Source:

20 Patterns of Target Market Selection

21 Patterns of Target Market Selection

22 Product differentiation Service differentiation
Identifying a set of possible competitive advantages to build a position by providing superior value from : Product differentiation Service differentiation Channel differentiation People differentiation Image differentiation

23 Positioning Perceptions Impressions Feelings
The way the product is defined by consumers on important attributes — the place the product occupies in consumers’ minds relative to competing products Perceptions Impressions Feelings

24 Perception “Many people believe that the basic issue in marketing is convincing customers you have a better product, that in the long run the best product will win. Not true… It's an illusion…there is no objective reality. The perception is the reality. Marketing is battle of perceptions, not products All that exists in the world of marketing are perceptions in the mind of customers “ Source: the 22 immutable laws of marketing by Jack Trout, Al Ries

25 Perceptions for Different Brands of Bar Soap
Positioning and Differentiation Positioning analysis is based on how (potential) customers think about a firm's current or potential offering Positioning considers how customers think about competitors' offerings as well as the firm’s own offering Positioning analysis identifies what kind of offering different segments see as ideal Differentiation focuses on developing a marketing mix that target customers will see as distinct from competing mixes Positioning and differentiation help with combining and segmenting, by revealing which segments view the market in similar (or dissimilar) ways

26 Positioning Statement (PS)
PS states the product’s membership in a category and then shows its point-of-difference from other members of the category. Examples :

27 Value Propositions

28 Dunkin versus Starbucks.
Discuss It’s the time of the great coffee wars: Dunkin versus Starbucks. Discuss the target market for each company’s coffee. Are these just consumer markets, or is there a business market for them as well?

29 thank you

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