So far, you’ve learned what marketing involves and the importance of gaining insights into consumers and the marketplace environment. With that as background, you’re now ready to delve deeper into marketing strategy and tactics. This chapter takes us further into key customer-driven marketing strategy decisions – the bases upon which markets are broken up into meaningful customer groups (segmentation), how we choose which customer groups to serve (targeting), create market offerings that best serve targeted customers (differentiation), and position the offerings in the minds of consumers (positioning). The chapters that follow explore the tactical marketing tools – the extended marketing mix – by which marketers bring these strategies to life.
For a visual representation of the chapter, please see the diagram on the following page.
6C H A P T E R C U S T O M E R – D R I V E N M A R K E T I N G S T R AT E G Y : C R E AT I N G V A L U E F O R T A R G E T C U S T O M E R S
Learning Objective 1 De�ne the main steps in designing a customer-driven marketing strategy: Market segmentation, targeting, di�erentiation and positioning.
Customer-driven marketing strategy p. 174
Learning Objective 2 List and discuss the main bases for segmenting consumer and business markets.
Market segmentation pp. 175–84
Learning Objective 3 Explain how companies identify attractive market segments and choose a market-targeting strategy.
Market targeting pp. 184–89
Learning Objective 4 Discuss how companies di�erentiate and position their products for maximum competitive advantage.
Di�erentiation and positioning pp. 189–95
Learning Objectives
M06_ARMS2696_06_SE_C06.indd 172 7/08/14 2:23 PM
Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2015 – 9781486002696 – Armstrong/Principles of Marketing 6e
Armstrong, Gary, et al. Principles of Marketing, P.Ed Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/cdu/detail.action?docID=5220573. Created from cdu on 2020-02-18 20:28:51.
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Select target
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Decide on value proposition
LO 1 De�ne the main steps in
designing a customer-driven marketing strategy: market
segmentation, targeting, di�erentiation and
positioning. (p. 174)
LO 2 List and discuss the main
bases for segmenting consumer and business
markets. (pp. 175–84)
LO 3 Explain how companies
identify attractive market segments and choose a
market-targeting strategy. (pp. 184–89)
LO 4 Discuss how companies
di�erentiate and position their products for maximum
competitive advantage. (pp. 189–95)
Undi�erentiated (mass) marketing
Di�erentiated (segmented)
marketing
Concentrated (niche)
marketing
Micromarketing (local or individual)
marketingTa rg
et in
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ra te
gi es
com pe
tit ive
ad va
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Identifying possible value di�erences and competitive advantages
Create value for targeted customers
Targeting Segmentation Di�erentiate the market o�eringDivide the total market into
to create superior customer value smaller segments
Using perceptual positioning maps Deciding a value propositionPositioning Di�erentiation Deciding which di�erences are • more for more • m
ore for th e same
good di�erentiators • more for less • th e same for less
• less for much less
Geographical Demographic Psychographic Behavioural
Ba se
s f or
se gm
en ta
tio n
Select customers to serve
M06_ARMS2696_06_SE_C06.indd 173 7/08/14 2:23 PM
Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2015 – 9781486002696 – Armstrong/Principles of Marketing 6e
Armstrong, Gary, et al. Principles of Marketing, P.Ed Australia, 2014. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/cdu/detail.action?docID=5220573. Created from cdu on 2020-02-18 20:28:51.
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Part 3 Designing a customer-driven strategy and mix 174
Customer-driven marketing strategy (p. 174)
Companies today recognise that they cannot appeal to all buyers in the marketplace, or at least not to all buyers in the same way. Buyers are too numerous, too widely scattered, and too varied in their needs and buying practices. Moreover, the companies themselves vary widely in their ability to serve different segments of the market. Instead, like any sound marketer, a company must identify the parts of the market that it can serve best and most pro�tably. It must design customer-driven marketing strategies that build the right relationships with the right customers.
