Professional Documents
Culture Documents
Hence the companies must Design and Deliver offerings for well-
defined target markets.
The value creation and delivery sequence can be divided into three
phases. The first phase, choosing the value, represents the
‘homework’ marketing must do before any product exists.
Once the business unit has chosen the value, the second phase is
providing the value.
It is also the case that the value delivery process begins before
there is a product and continues while it is being developed and
after it becomes available.
Concept of Market Segmentation:- A Market Segment consists
of a group of customers who share a similar set of Needs and
Wants.
The company can offer better design, price, disclose and deliver
the product or service and also can fine-tune the marketing
program and activities to better reflect competitors’
marketing.
b. Life Stage:- Persons in the same part of the life cycle may differ
in their life stage.
Life stage defines a person’s major concern, such as getting
married, deciding to buy a home, sending the child to the school,
taking care of older family members, marrying off their children,
planning for retirement, and so on.
These life stages presents opportunities for marketers who can help
people cope with their major concerns.
• Hard – Core Loyals:- Consumers who buy only one brand all the
time.
ii. Shallow (uncommitted to the brand and could switch – some are
actively considering alternatives).
iii. Average (committed to the brand they are using, but not as strongly
– they are unlikely to switch brands in the short term).
iv. Entrenched (strongly committed to the brand they are currently
using – they are highly unlikely to switch brands in the foreseeable
future).
iii. Ambivalent (as attracted to the brand as they are to their current
brands).
Demographic:-
Operating Variables:-
Personal Characteristics:-
If several brands are there in the market, they are likely to position
themselves throughout the space and show real differences to
match differences in consumer preference.
These firms have realized that the best recipe for internet success
is to choose a hard–to–find product that customers don’t need
to see and touch.
The firm provides a platform and tools and ‘rents’ out to customers
the means to design their own products. A company is
customerized when it is able to respond to individual
customers by customizing its products, services, and messages
on a one-to-one basis.
Customization is certainly not the cup of tea for every company.
It may be very difficult to implement for complex products such as
automobiles. (Exception is BMW).
Customization can also raise the cost of the goods by more than
the customer is willing to pay.
Some customers don’t know what they want until they see the
actual products.
At the same time they also cannot cancel the order after the company
has started to work on the product. Moreover these type of products
may be hard to repair and have a little resale value.