Is the tailoring products and marketing programs to the needs and preferences of individual customers?

CH. 6 CUSTOMER VALUE-DRIVEN MARKETING

STRATEGY

• Since companies must design customer-driven marketing strategies, they have moved

toward target marketing: identifying market segments, selecting one or more of them, and

developing products and marketing programs tailored to each.

(B) 6.1 MARKETING STRATEGY

Designing a customer-driven marketing strategy

• 4 major steps in designing a customer-driven value marketing strategy

• First 2 steps: company selects customers that it will serve

• Market Segmentation involves dividing a market into distinct groups of

buyers who have different needs, characteristics, or behaviors and who

might require separate marketing strategies or mixes

• Market targetingconsists of evaluating each market segment’s

attractiveness and selecting one or more market segments to enter

• Final 2 steps: company decides on value proposition

•Differentiation involves actually differentiating the firm’s market

offering to create superior customer value

•Positioning consists of arranging for a market offering to occupy a clear,

distinctive, and desirable place relative to competing products in the minds

of target consumers

(B) 6.2 MARKET SEGMENTATION

Micromarketing-is the practice of tailoring products and marketing programs to suit the tastes of specificindividuals and locations. Rather than seeing a customer in every individual,micromarketers see the individual in every customerLocal marketing-involves tailoring brands and marketing to the needs and wants of local customersegments like cities, neighbourhoods, and even specific stores.Individual marketing-involves tailoring products and marketing programs to the needs and preferences ofindividual customers.Mass customization-is the process by which firms interact one to one with masses of customers to designproducts, services, and marketing programs tailor-made to individual needs.Factors to consider before choosing a targeting strategy:Company resources-When limited, concatenated marketingProduct variability-Undifferentiated marketing for uniformProduct’s life-cycle stage-Practical to lunch only one version at the beginningMarket variability-All people are the same? So, undifferentiated marketing.Competitors’ marketing strategies

-Competitors use differentiated? Don’t suicide! If they use undifferentiated, gainadvantage!Socially responsible:Controversy and concern of target marketing-Vulnerable or disadvantaged consumers are targeted with controversial or potentiallyharmful products.Socially responsible target marketing should be done to serve both the interests of the companyand the interests of those targeted.Objective summary:To target the best market segments, the company first evaluates each segment’s size and growthcharacteristics, structural attractiveness, and compatibility with company objectives andresources. It then chooses one of four market-targeting strategies—ranging from very broad tovery narrow targeting. The seller can ignore segment differences and target broadly usingundifferentiated (or mass) marketing. This involves mass producing, mass distributing, and masspromoting the same product in about the same way to all consumers. Or the seller can adoptdifferentiated marketing—developing different market offers for several segments. Concentratedmarketing (or niche marketing) involves focusing on one or a few market segments only. Finally,micromarketing is the practice of tailoring products and marketing programs to suit the tastes ofspecific individuals and locations.Micromarketing includes local marketing and individual marketing. Which targeting strategy isbest depends on company resources, product variability, product life-cycle stage, marketvariability, and competitive marketing strategies.6.4 Discuss how companies differentiate and position their products for maximumcompetitive advantage.Differentiation and positioning:•Firms must decide which segments to target and on the value proposition.

Is tailoring products and marketing programs to the needs and preferences of individual customers?

Which is the practice of tailoring products and marketing programs?

Is tailoring brands and marketing to the needs and wants of cities Neighbourhoods and even specific stores?

What marketing means that each customer serves as his or her own segment?