Chapter 6: Customer-Driven Marketing Strategy Creating Value for Target Customers

Market segmentation

Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes

Market targeting

The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter

Differentiation

Differentiating the market offering to create superior customer value

Positioning

Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Geographic Segmentation

Dividing a market into different geographical units, such as nations, states, regions, counties, or cities

Demographic Segmentation

Dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation

Benefit segmentation

Dividing the market according to the different benefits that consumers seek from the product

Target market

A set of buyers sharing common needs or characteristics that the company decides to serve

Micromarketing

Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments

Local Marketing

Tailoring brands and promotions to the needs and wants of local customer segments—cities, neighborhoods, and even specific stores

Individual Marketing

Tailoring products and marketing programs to the needs and preferences of individual customers Made-to-order clothing or shoes

Competitive advantage

An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices

Value proposition

The full positioning of a brand—the full mix of benefits on which it is positioned