The Right Relationship

The Right Relationship ? with the Right Customer Effective Target Marketing From last class? Basic steps for marketing research Four of them Key decisions a researcher must make Three types of research approaches Two types of data Three types of research methods Sampling issues What you should know? How segmentation, targeting, and positioning guide marketing strategy. How markets are identified and selected. The role of positioning. What is it? How do you do it? Competitive advantage Unique selling proposition Basics of Target Marketing Step 1: Segmentation How do we segment? Behavioral bases Benefits Sought User Status Usage Rate Loyalty Occasions Demographic bases Geographic bases Psychographic bases Psychographics Personality Lifestyle Social class VALS Survey VALS Interpretation Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products they buy. Believers are predictable; they choose familiar products and established brands. They favor American products and are generally loyal customers. Drive ford and chevy. Survivors are loyal to favorite brands, especially if they can purchase them at a discount. Walmart Step 2: Target Marketing Evaluating Market Segments Segment size and growth Segment structural attractiveness Level of competition Substitute products Company objectives and resources Choosing a strategy Choosing the Right Target Matters Step 3: Positioning Defined by consumers on important attributes ? perception. Where product is in consumers? minds, relative to competing products. Competitive advantage ? extent to which a company can position itself as providing superior value. Services Differentiation Product Differentiation People Differentiation Image Differentiation Channel Differentiation Identifying Competitive Advantages Positioning Strategy: Choosing a Value Proposition Managing a Positioning Strategy Develop a positioning statement Positioning statements summarize the company or brand positioning EXAMPLE: To (target segment and need) our (brand) is (concept) that (point-of-difference). Communicate the chosen position Monitor effect of positioning strategy Perceptions & Preferences Popular with Men Heavy Special Occasions Dining Out Premium Popular with Women Light Pale Color On a Budget Good Value Blue Collar Full Bodied Premium Budget Light Heavy Meister Brau Stroh?s Beck?s Heineken Old Milwaukee Miller Coors Michelob Miller Lite Coors Light Old Milwaukee Light Budweiser Less Filling Applied Marketing Research: Positioning a Brand Who do we need to target? What do they think now? What do we want them to think, now and from now on? How do we do that? Start with a perceptual map?