In this chapter, the following content will be discussed: Market targeting, differentiation and positioning, selecting target market segments, evaluating market segments, target marketing strategies, four levels of micromarketing,. | Creating Value for Target Customers LECTURE-12 1 Market Targeting Differentiation and Positioning Topic Outline In this chapter, we dig deeper into steps two and three of the marketing process: designing customer-driven marketing strategies and constructing marketing programs. First, we look at the organization’s overall strategic planning, which guides marketing strategy and planning. Next, we discuss how, guided by the strategic plan, marketers partner closely with others inside and outside the firm to create value for customers. We then examine marketing strategy and planning—how marketers choose target markets, position their market offerings, develop a marketing mix, and manage their marketing programs. Finally, we look at the important step of measuring and managing return on marketing investment (marketing ROI). 2 Market Targeting Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve Selecting Target Market Segments Market segmentation reveals the firm’s market segment opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can serve best. We now look at how companies evaluate and select target segments. 3 Market Targeting Segment size and growth Segment structural attractiveness Company objectives and resources Evaluating Market Segments Evaluating Market Segments In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. First, a company wants to select segments that have the right size and growth characteristics. But “right size and growth” is a relative matter. The largest, fastest-growing segments are not always the most attractive ones for every company. Smaller companies may lack the skills and resources needed to serve larger segments. Or they may find these segments too competitive. Such companies may target . | Creating Value for Target Customers LECTURE-12 1 Market Targeting Differentiation and Positioning Topic Outline In this chapter, we dig deeper into steps two and three of the marketing process: designing customer-driven marketing strategies and constructing marketing programs. First, we look at the organization’s overall strategic planning, which guides marketing strategy and planning. Next, we discuss how, guided by the strategic plan, marketers partner closely with others inside and outside the firm to create value for customers. We then examine marketing strategy and planning—how marketers choose target markets, position their market offerings, develop a marketing mix, and manage their marketing programs. Finally, we look at the important step of measuring and managing return on marketing investment (marketing ROI). 2 Market Targeting Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve Selecting Target Market
