Concepts of market segmentation, targeting, differentiation, positioning are reviewed, based on a text by Armstrong and Kotler. This presentation will help you understand how to develop marketing strategies that are effective in identifying and winning customers.

1. Adapted from Ch. 3 of Marketing, Armstrong and Kotler, 10th ed., 2011,
Prentice Hall. ISBN: 978-0-13-610220-5.
Customer-Driven
Marketing Strategy
Graham Garner • Wartburg College •
Principles of Marketing, BA 353 • Fall 2013

2. WHAT’S THE DIFFERENCE BETWEEN THESE TWO?
SHOTGUN VERSUS RIFLE

3. MARKET SEGMENTATION
TARGETING
DIFFERENTIATION
POSITIONING
CUSTOMER-DRIVEN MARKETING STRATEGIES
THE FOUR MAJOR STEPS TO DESIGNING THEM

4. SELECTING CUSTOMERS TO SERVE
THROUGH SEGMENTATION AND TARGETING

5. MARKET SEGMENTATION
ALLOWS YOU TO REACH MARKETS MORE EFFICIENTLY AND EFFECTIVELY

6. GEOGRAPHIC
DEMOGRAPHIC
PSYCHOGRAPHIC
BEHAVIORAL
MAJOR SEGMENTATION VARIABLES
FOR CONSUMER MARKETS

7. Measurable
Size, purchasing power and
profiles can be measured

8. Accessible
Market can be reached
and served

9. Substantial
Large or profitable enough

10. Differentiable
Conceptually distinguishable
and respond differently

11. Actionable
Able to take action tailored
to the market segment

12. TARGETING
INVOLVES CHOOSING HOW MANY AND WHICH MARKET SEGMENTS TO FOCUS ON

13. U N D I F F E R E N T I AT E D
MASS
D I F F E R E N T I AT E D
SEGMENTED
C O N C E N T R AT E D
NICHE
MICROMARKETING
LOCAL OR INDIVIDUAL
MARKET TARGETING STRATEGIES
FROM BROAD TO NARROW

14. How can targeted
marketing be used
irresponsibly?

15. DECIDING ON A VALUE PROPOSITION
THROUGH DIFFERENTIATION AND POSITIONING

16. DIFFERENTIATION
ALLOWS AN ORGANIZATION TO PRESENT ITS OFFERING AS SUPERIOR IN VALUE

17. PROFITABLE
DISTINCTIVE
SUPERIOR
COMMUNICABLE
PREEMPTIVE
AFFORDABLE
DIFFERENCES TO PROMOTE
HOW MANY DIFFERENCES SHOULD AN ORGANIZATION PROMOTE TO GAIN ADVANTAGE?

18. POSITIONING
IS THE WAY CONSUMERS DEFINE A PRODUCT OR SERVICE IN RELATION TO COMPETITION

19. POSITIONING MAP
SHOWS CONSUMER PERCEPTION OF A BRAND IN RELATION TO OTHERS

20. Develop a positioning map
with 10 brands:
•Cars
•Shoes
•Clothing stores
•Cell phones
•Restaurant franchises