1. Marketing Management
18 April 2011

2. Customer-Driven Marketing Strategy: Creating Value for Target Customers
Market Targeting

3. Creating Value for Target Customers

4. Evaluating Market Segments
Important to collect and analyse data on segment sales, growth rates and expected profitability
Companies look at three (3) factors in evaluating market segments
Segment Size and Growth
Segment structural attractiveness
Company objectives and resources

5. Business Segmentation Process

6. Selecting Target Market Segments
After concise segment evaluations, decide on particular segments to target
Target Market: A set of buyers sharing a common need or characteristics which the company decides to serve
Marketing Target Strategies vary from very broad to being very specific
Undifferentiated Marketing (Mass Marketing)
Differentiated Marketing (Segmented Marketing)
Concentrated Marketing (Niche Marketing)
Micro Marketing (Local or Individual Marketing)

7. Marketing Targeting Strategies
Undifferentiated: A market coverage strategy where the company ignores market segment differences and selects to target the whole market – focuses on common needs of customers
Differentiated: A market coverage strategy where the company targets several market segments and provides separate offers for each segment – focuses on differentiated needs of customers

8. Marketing Targeting Strategies
Concentrated: A market coverage strategy where the company targets a dominant share of one or a few select segments – focuses on serving niches
Micro Marketing: A market coverage strategy where the company focuses on tailoring products and programs to the needs of individuals and local groups
Local Marketing – tailoring brands and promos to needs and wants of locals in cities, suburbs, stores
Individual Marketing - tailoring brands and promos to needs and wants of individual customers e.g. one-on-one marketing

9. Choosing Targeting Strategies
Market targeting strategies are dependent on:
Company Resources
Product Variability
Product Life Cycle Stage
Market Variability
Competitors’ Marketing Strategies

10. Differentiation and Positioning
Marketers plan positions to give their products advantages in selected target markets through marketing mixes
Product Positioning: The way the product is defined by consumers on important attributes – the position it occupies in a consumer’s mind compared to competing products
Consumers organise products, services, and companies and “position” them in their minds
Marketers should not leave their product’s positioning to chance

11. Differentiation and Positioning Strategy
A brand’s positioning must serve the needs and preferences of well defined target markets
Differentiation and Positioning task consists of three steps:
Identifying possible Value Differences and Competitive Advantages
Choosing the right competitive advantage
Selecting an overall positioning strategy

12. Differentiation and Positioning Strategy

13. Identifying Possible Value Differences and Competitive Advantages
Marketers must understand customer’s needs better than their competitors
Marketers need to deliver more customers value to gain a competitive advantage
A company has to live up to its promises and not make empty promises
A company can differentiate through its products, services, channels, the people it employs and its image

14. Choosing the Right Competitive Advantage
This entails choosing the number of differences to promote and which specific ones to promote
Number of Differences to Promote
Every company should have a Unique Selling Point (USP)
Each brand must have its own main USP
Differences to Promote
Not all differences are great differentiators
A great difference satisfies the following: important, distinctive, superior, communicable, pre-emptive, affordable, profitable

15. Selecting An Overall Positioning Strategy
Full position of a brand is called the brand’s Value Proposition
Value Proposition: the full mix of benefits which differentiates and positions the brand
Possible Value Propositions
More for More
More for the same
The same for Less
Less for Much Less
More for Less

16. Positioning Map

17. Product Positioning

18. Positioning Statement
Positioning Statement: A statement which summarises the company or the brand’s positioning
The statement incorporates
The need
Target Segment
The brand
The concept
The point of difference
The brand’s superiority is outlined in its point of difference
All the company’s marketing mix effort must support the positioning strategy

19. See you next time.
Cheers Guys!