o      Usage Situation (Column)

o      Person Demographics (Row)

For (target market) the (name of product) is (singly most important claim) among all (competitive frame) because (single most important support)

o      1. Create value for customers

o      2. Attract and keep right customers

o      3. Profit (sustainment)

market segmentation

target market selection

positioning

o      The process of grouping customers into relatively homogeneous sets such that customers within a segment are similar to one another in the way they respond to the marketing effort directed at them.

o      Effective for reaching customer groups

o      Help in allocating marketing resources

o      Identifies market opportunities

o      Most used way to segment

o      Includes region, city, or metro size, density, and climate

o      Easy but not that useful

o      Age, gender, family size and life cycle, ethnicity, occupation, income, religion, education

o      In the middle of most used and most useful for segmentation

o      Easy but not that useful

o      Lifestyle, personality, attitudes

o      In the middle of most used and most useful for segmentation

o      Usage situations, benefits

o      Useful and really powerful, brand usage

o      Hits more emotional

Target attractive segments:

target a segment that . . .

Market fit

Competitive intensity

market profitability

based on the benefits sought by customer

based on observable characteristics of customer

1. understand the benefits that customers seeks

2. segment the market and develope prototypical customer profiles based on the customer benefits

3. find the observable variables (such as demographic characteristics) that are most likely to discriminate between the benefit segments to identify membership in specific segments

1. ability to conceive and design

2. ability to produce (quality and quantity)

3. ability to market

4. ability to finance

5. ability to manage/execute

1. who are the customers

2. what is the set of needs that the product fulfills

3. why is the product the best option to satisfy those needs

customers' needs and the value they percieve in vendors' offerings are subject to change overtime

and increased emphasis on a set of customers within the portfolio can affect a firm's relationship with ther customer's cuttently served

technological and environmental changes have occurred to the extent that firms that lack customer management strategy will be at a competitive disadvantage

-manage cost to serve individual customer

-determine customers that are unprofitable

-conduct marketing experiments with small amount of customers

-measure return on investment

-avoid expensive mass marketing

-increase revenues through customer acquisition

1. select portfolio of customers

2. develope corresponding portfolio of customer management strategies

3. monitore the health of customer relationships over time

4. link customer management effort to economic reward

LTV= N((M)(r)/(1-r+i)) - AC

N= # of yrs over relationship calculated

M= margin the customer generate in year

r= retention rate (survival rate for year)

i= interest rate

AC = Acquisition cost

See pg 192 for more info

1. Transform strategy and culture

2. Design and develop a set of powerful marketing tools

3. Implement new CRM technology (IT)

-set clear ROI targets

-align employee compensation

-obtain buy-in across organization every step of the way

-drive the initiative from senior-most levels in firm

-ensure employees' skills are compatible

align strategy, tactics and measurements

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A= attitude toward object

Wi= believe strength assigned to particular attribute

Xib= evalutation assigned toa particular attribute

E= Summation of all product attributes

minimin cutoff points for each attribute

andything alternative that does not meet this is dropped

initial awareness

developement of further knowledge

creation of certain beliefs

emergence of particular feeling

intention to by or not by

actual purchase or refusal

widen or narrow as perception change about adequacy of current or actual state or as perception change about what is a feasible desired state

1. percetion of there being a better performing alternative

2. percetion that the current product or service is no longer performing satisfactorily

3. som combination

culture

subculture- division of larger culture based on some characteristic such as social status or ethnicity

while there are important universals among all society that are often expressed or manifested in different ways

1. successful standardization is the exception not the rule

2. some important differentiation is often require

3. firms that fail to explicitly consider differentiating their marketing mix will fail (or not be as successful)