Principles of Marketing: Marketing overview & Customer-driven marketing strategy

Presented By: “Tahmid Siddique”

Presentation
On
Marketing
Course Title: Principles Of Marketing
Course Code: BBA 0204

 What is Market?
 Types of Market.
 What is Marketing?
 Key Concepts of Marketing
 Digital Marketing
 Marketing Management Concepts
 Marketing Mix
 Building Customer Relationships
 Types of Customer Relationship Group
Marketing Overview: Creating And Capturing
Customer Value
01
 Market Segmentation
 The Variables of Segmenting Consumer Market
 Requirements for Effective Segmentations
 Types of Target Market Strategies
 Types of Differentiation Strategies
Customer-Driven Marketing Strategy: Creating Value
For Target Customers
02
Discussion List:
Conclusion03

Submitted To:
Rumana Perveen,
Asst.Professor,
Department of BusinessAdministration,
NorthernUniversityofBusinessandTechnology,
Khulna.

Our Team
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Marketing
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1. Customer is always right.
2. If customer is wrong
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Tahmid Zuhaer Siddique
ID: 01180110281

Marketing Overview:
Creating And Capturing
Customer Value

What Is Market?
 In general sense, market or marketplace, is a
location where people regularly gather for the
purchase and sale of provisions, livestock, and
other goods. Which is essentially a wrong
assumption in “Marketing”.
 In marketing, the term market refers to the
group of actual or potential buyers (customers,
consumers or organizations) who are interested
in the product or services, have the resources to
purchase the product, and are permitted by law
and other regulations to acquire the product.
 The concepts of exchange and relationships lead
to the concept of a market.
 That is, Market is the set of actual and potential
buyers of a product or service.
 The value, cost and price of items traded are as
per forces of supply and demand in a market.
The market may be a physical entity, or may be
virtual. It may be local or global, perfect and
imperfect.

Types of MarketOn the Basis of Space:
 Physical Markets: Physical market is a set up where buyers can
physically meet the sellers and purchase the desired
merchandise from them in exchange of money. Shopping malls,
department stores, retail stores are examples of physical
markets.
 Virtual markets: In such markets, buyers purchase goods and
services through internet. In such a market the buyers and
sellers do not meet or interact physically, instead the transaction
is done through internet. Examples - Rediff shopping, eBay etc.
On the Basis of Authority:
 Monopoly Market: A monopoly refers to a market structure
where a single firm controls the entire market. In this scenario,
the firm has the highest level of market power, as consumers do
not have any alternatives. As a result, monopolists often reduce
output to increase prices and earn more profit.
 Oligopoly Market: An oligopoly describes a market structure
which is dominated by only a small number firms. This results in
a state of limited competition. The firms can either compete
against each other or collaborate. By doing so they can use their
collective market power to drive up prices and earn more profit.

Types of Market
On the Basis of Marketing:
 Actual Buyers: An actual buyer is a buyer who is
committed towards the purchase of a product or
service. In other words, a buyer who is sure about
purchasing a product or service and is willing to
spend money for it.
 Potential Buyers: A potential buyer is interested in
a purchase of a product or service but not exactly
committed to buying it. That is, a potential buyer
might be interested in a product or service but not
sure about purchasing it.

What Is Marketing?
 Marketing is basically a value exchange through strong relationships.
 Marketing means managing market to bring about profitable customer relationships.
 It is a process by which companies create value for customers and build strong customer relationships
to capture value from customers in return.
 The two fold goal of marketing is to attract new customers by promising superior value and keep and
grow current customers by delivering satisfaction and value.
 According to Philip Kotler (the father of marketing) and Armstrong, ”marketing is the social process
by which individuals and organizations obtain what they need and want through creating and
exchanging value with others.”
 According to American marketing association,” marketing is the activity, set of institutions, and
process for creating, communicating, delivering and exchanging offerings that have value for
customers, clients, partners and society at large.
 Marketing is the study and management of exchange relationships. It is the business process of
creating relationships with its focus on the customers.
 It is one of the premier concepts of business management.

Key Concepts Of Marketing
 The easiest explanation of the concept “needs” is the basic
human requirements like shelter, clothings, food, water, etc.
 These are essential for human beings to survive.
 If we take it further, needs include basic physical needs for
belonging and affection; individual needs for knowledge and self
expression these needs are a basic part of the human makeup.
 The most basic concept underlying marketing is human needs.
 Human needs are states of felt deprivation.
Needs
 Needs aren’t only physical. Needs can
be a social thing, for example, social
class, belonging to a certain society and
need of self-expression.
 In the 21st century, thousands of
brands are promoting the same
products and services from the
needs category.

 Wants are simply something an individual would
like to have.
 Wants are the forms of human needs take as they
are shaped by culture and individual personality.
 Wants are shaped by ones society and are
described in terms of objects that will satisfy
those needs.
 Wants are desires for specific satisfiers of needs.
 Example: Fast Food, Sport cars, Inflatable Bed,
Bungalow, Laptops, Suits, Punjabi etc.
Wants

 Human wants that are backed by buying power.
 People given wants and resources demand products and services with
benefits that add up to the most value and satisfaction.
 Demand is an economic principle referring to a consumer's desire and
willingness to pay a price for a specific good or service.
 When an individual wants something which is premium, but he also
has the ability to buy it, then these wants are converted to demands.
 Demands are categorized on the basis of three things:
 Intention To Pay
 Ability To Pay
 Authority To Buy
Demands

 Needs are simply the state of deprivation as mentioned earlier.
 But wants are quite different from needs.
 Wants aren’t permanent and it regularly changes.
 As time passes, people and location change, wants change accordingly.
 Wants aren’t essential for humans to survive, but it’s associated with
needs.
 For example, if we always manage to satisfy our wants, it transforms
into a need.
 The key difference between wants and demand is desire.
Consequently, for people, who can afford a desirable product are
transforming their wants into demands.
 The needs wants and demands are a very important component of
marketing because they help the marketer decide the products which
he needs to offer in the market.
 Thus the flow is like this:
Market >> Identify needs wants and demands >> Offer
products to satisfy either needs wants or demands
Relationship Between Needs, Wants and Demands
An individual requires
Food for survival.
Anything that provides
nutrition to a human
body it can be categorized
as a basic need for him or
her.
When the same
individual desires to
consume a particular
category of food say
Chinese cuisine, then
it can be categorized
as his or her want.
Again, if that
individual has the
authority to buy and
ability and intention
to pay for a Chinese
cuisine in Radisson Blu
then his or her wants
will be converted to
demand.

 Market offerings are some combination of products, services
information, experiences, events, person, place, properties,
organization and ideas offered to a market to satisfy a need or
want.
 Market offerings are not just limited to physical products; they can
also include services such as intangible like activities or benefits
offered for sale, but have no ownership.
 Examples of service market offerings may include: Banking, airline,
hotel, retailing and home repairing services.
Market Offerings
 Value is the usefulness, worth and importance of products and services in the minds
of customers.
 This stems from how well a product fulfills customer needs and matches customer
preferences.
 Value is also greatly influenced by the regard that customers hold for a brands.
 The difference between what a customer gets from a product or service and what he
or she has to give in order to get it.
 The difference or ratio between benefit and cost is known as value.
Value
Value =
Benefit
Cost

 An exchange process is simply when an individual or an
organization decides to satisfy a need or want by offering some
money or goods or services in exchange.
 It’s that simple, and you enter into exchange relationships all the
time.
 The exchange process extends into relationship marketing.
 Exchange is the act of obtaining a desired object from someone by
offering something in return.
Exchange
 Customer relationship is the bondage between company and customer
established through the way the company interact with them.
 Relationship is the development of an ongoing connection between a company
and its customers.
 Relationship involves marketing communications, sales support, technical
assistance and customer service.
 This relationship is measured by the degree of customer satisfaction through the
buying cycle and following receipt of goods or services. See also customer
relationship management.
Relationship

 Customer satisfaction (often abbreviated as CSAT, more correctly CSat) is a
term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass customer expectation.
Customer Satisfaction
 A target market is a group of customers within
a business's serviceable available market at which a
business aims its marketing efforts and resources.
 Target marketing is a business term meaning the market
segment to which a particular good or service is marketed.
It is mainly defined by age, geography, socio economic
group or any other combination of demographics.
 The target market typically consists of consumers who
exhibit similar characteristics such as age, location, income
or lifestyle.
Target Market
 The extent to which a product is perceived performance
matches a buyers expectations.
Actual performance = expectation satisfied
Actual performance > expectation highly satisfied
Actual performance < expectation dissatisfied
 Highly Satisfied Customers are called Delighted Customers.

 Marketing Myopia, first expressed in an article by
Theodore Levitt in Harvard Business Review.
 Marketing Myopia is a short-sighted and inward
looking approach to marketing which focuses on
fulfillment of immediate needs of the company
rather than focusing on marketing from consumers
point of view.
 The Myopic cultures, Levitt postulated, would pave
the way for a business to fall, due to the short-
sighted mindset and illusion that a firm is in a so-
called “growth industry”. This belief leads to
complacency and a loss of sight of what customers
want. It is said that these people focus more on the
original product and refuse to adapt directly to the
needs and wants of the consumer.
 Examples: Hollywood didn’t even tap the television
market as it was focused just on movies.
Marketing Myopia
 Demarketing is marketing to reduce
demand temporarily or permanently.; the
am is not to destroy demand but to reduce
or shift it.
 PHILIP KOTLER said in his autobiography, My
Adventures in Marketing- “But we also need
a science of Demarketing to help reduce the
demand for certain products and services”.
Demarketing

 Market Segmentation is dividing the markets into segments of customer.
 Market segmentation is the process of dividing a market of potential
customers into groups, or segments, based on different characteristics.
 The segments created are composed of consumers who will respond
similarly to marketing strategies and who share traits such as similar
interests, needs, or locations.
 Market segmentation also reduces the risk of an unsuccessful or
ineffective marketing campaign.
Market Segmentation
10%
8%
28%
31%
23%
Family Based Segmentations
Bachelors
Families with no kids
Families with Kids
Families with Older Kids
Empty Nestes

 Digital marketing is the marketing of products or
services using digital technologies, mainly on
the Internet, but also including mobile phones, display
advertising, and any other digital medium.
 Digital marketing's development since the 1990s and
2000s has changed the way brands and businesses use
technology for marketing.
 As digital platforms are increasingly incorporated into
marketing plans and everyday life, and as people use
digital devices instead of visiting physical shops, digital
marketing campaigns are becoming more prevalent and
efficient.
 Most of the marketing promotions are done digitally
these days.
 Examples: Email, YouTube, Facebook, Other Websites
etc.
Digital Marketing

Marketing Management Concepts
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
 Marketing management wants to
design strategies that will engage
target customers and build
profitable relationships with
them.
 There are five alternative concepts
under which organizations design
and carry out their marketing
strategies.

 Production concept is the oldest of the concepts in business.
 The reason that Production was given major importance was
because of “Says Law” which stated that supply creates its
own demand.
 The Production Concept holds that consumers will prefer
products that are widely available, inexpensive and available.
 Managers focusing on this concept concentrate on achieving
high production efficiency, low costs, and mass distribution.
 Companies adopting this orientation run a major risk of
focusing too narrowly on their own operations and losing sight
of the real objective -satisfying customer needs and building
customer relationship.
 Most times, the production concept can lead to marketing
myopia.
 This orientation makes sense in developing countries, where
consumers are more interested in obtaining the product than
in its features.
 Example: Chinese cell-phones and other products.
Production Concept
P

Product Concept
 Product concept holds that consumers will favor those
products that offer the most quality, performance, or
innovative features.
 Under this concept, Managers concentrate on making superior
products and improving them over time.
 They assume that buyers admire well-made products and can
appraise quality and performance.
 However, these managers are sometimes caught up in a love
affair with their product and do not realize what the market
needs.
 Management might commit the “better-mousetrap” fallacy.
 Product quality and improvement are important parts of
marketing strategies, sometimes the only part.
 In a battle between quality and quantity, quality will always
have the upper hand incase of a faction of customers and
consumers.
 Today, most of the leading companies in the world use
product oriented marketing strategies.
 Example: Apple Inc. , Samsung, Asus, Mercedes Benz etc.

Selling Concept
 The Selling concept says that consumers and
businesses, if left alone, will ordinarily not buy
enough of the selling company’s products.
 The organization must, therefore, undertake an
aggressive selling and promotion effort.
 This concept assumes that consumers typically
show buying inertia or resistance and must be
coaxed into buying.
 It also assumes that the company has a whole
battery of effective selling and promotional
tools to stimulate more buying. Most firms
practice the selling concept when they have
overcapacity.
 Their aim is to sell what they make rather than
make what the market want
Features:
 Unsought products.
 Time consuming or painful products.
 Essential products.
 Focuses on the needs of the seller.
 Example: Insurance polices, Blood
Donations, TIN Certificate.

Marketing Concept
 The marketing concept a business philosophy that
challenges the other three business orientations.
 The marketing concept holds- “achieving organizational
goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better
than competitors do”.
 Here marketing management takes a “customer first”
approach.
 Under the marketing concept, customer focus and value
are the routes to achieve sales and profits.
 The marketing concept is a customer-centered “sense and
responds” philosophy.
 The job is not to find the right customers for your product
but to find the right products for your customers.
 This concept focuses on the needs of the buyer.
 The marketing concept rests on four pillars: target market,
customer needs, integrated marketing and profitability.
 The Marketing Concept represents the major
change in today’s company orientation that
provides the foundation to achieve competitive
advantage.
 This philosophy is the foundation of consultative
selling.

Societal Concept
 The Marketing Concept has evolved into a fifth and more
refined company orientation: The Societal Marketing Concept.
 This concept is more theoretical and will undoubtedly
influence future forms of marketing and selling approaches.
 The societal marketing concept holds that marketing strategy
should deliver value to customers in a way that maintains or
improve both the consumers and society's well-being.
 The Societal Marketing Concept puts the Human welfare on
top before profits and satisfying the wants.
 This orientation arose as some questioned whether the
Marketing Concept is an appropriate philosophy in an age of
environmental deterioration, resource shortages, explosive
population growth, world hunger and poverty, and neglected
social services.
 The marketing concept possibly sidesteps the potential
conflicts among consumer wants, consumer interests, and
long-run societal welfare.
 Example: The fast-food hamburger industry
offers tasty but unhealthy food. The hamburgers
have a high fat content, and the restaurants
promote fries and pies, two products high in
starch and fat. The products are wrapped in
convenient packaging, which leads to much
waste. In satisfying consumer wants, these
restaurants may be hurting consumer health
and causing environmental problems. The
motive of societal marketing is to find suitable
solutions of these type of problems without
deteriorating customer satisfaction.

Societal Concept
Society
(Human Welfare)
Company
(Profits)
Consumer
(Satisfaction)
Presented By: “Tahmid Siddique” Presented By: “Tahmid Siddique”

Afrina Binte Haque
ID: 01180110293

Marketing Mix
 The marketing mix a combination
of factors or marketing tools that
can be controlled by a company to
influence consumers to purchase
its products.
 The marketing mix is a foundation
model.

 Product:
 A product is the first of the 4Ps of Marketing.
 A product is an item that is built or produced to satisfy the
needs of a certain group of people.
 It can be intangible or tangible as it can be in the form of
services or goods.
 Marketers must always have a clear concept of what their
products stand for and what differentiates them from the
competition before they can be marketed successfully.
 They must ensure to have the right type of product that is
in demand for your market.
 A product has a certain life cycle that includes the growth
phase, the maturity phase, and the sales decline phase. It
is important for marketers to reinvent their products to
stimulate more demand once it reaches the sales decline
phase.
 Marketers must also create the right product mix.
 All in all, marketers must ask themselves the question
“what can I do to offer a better product to this group of
people than my competitors”.
Product
Marketing Mix

Marketing Mix
Product: Steps of Production Planning:
Production
S U C C E S S
The next step pertains to generating various schedules.
Based on the demand forecast, the system develops
several routes that production can take. This step
considers diverse factors such as material availability,
equipment functionality, and the timeframe
established.
Scheduling Alternatives
Without demand forecasting, production is unsure of
how much to produce, which halts the first step of the
process. This is because demand forecasting enables
effective demand, capacity, and production planning.
Demand Forecasting
As the system executes the schedule, it oversees the
entire process. This is completed by data being fed
into the system. The control system can quickly alert
the facility when a problem occurs or when human
interference is needed.
Control
After the process is complete, the system then
analyzes the schedule and fixes the areas in which
efficiency is lacking. This process is completed several
times as the production schedule is carried out and
ensures for a quickly optimized and overall efficient
production process and schedule.
Evaluation and Adjustments
V i d e o P r o d u c t i o n

Step 1: Product
Concept
Step 2:
Research
Step 3: Product
Design
Development
Step 4: Research
and
development of
the final design
Step 5: CAD Step 6: CAM
Step 7:
Prototype
Testing
Step 8:
Manufacturing
Step 9:
Assembly
Step 10:
Feedback and
Testing
Step 10:
Feedback and
Testing
Step 11:
Product
Development
Step 12:
Final
Product
Marketing Mix
Product: Steps of Product Manufacturing:
 What does the client want from the service or product?
 How will the customer use it?
 Where will the client use it?
 What features must the product have to meet the client’s
needs?
 Are there any necessary features that you missed out?
 Are you creating features that are not needed by the client?
 What’s the name of the product?
 Does it have a catchy name?
 What are the sizes or colors available?
 How is the product different from the products of your
competitors?
 What does the product look like?
Products areto bedesigned
andmanufacturedbasingon
thisquestions

 Product:
 After determining the product comes the determination of its
value among target audiences; which is widely known as ‘price’
meaning the charge for something.
 The price of the product is basically the amount that a customer
pays for to enjoy it.
 Price is a very important component of the marketing mix.
 It is also a very important component of a marketing plan as it
determines your firm’s profit and survival.
Marketing Mix
Price
 Price not only refers to the monetary
value of a product. But also the time or
effect the customer is willing to expend
to acquire it.
 Price determinations will intact profit
margins, supply, demand and
marketing strategy.
 Similar products and brands may needs
to be positioned differently based on
varying price points.
 Adjusting the price of the product has a
big impact on the entire marketing
strategy as well as greatly affecting the
sales and demand of the product.
 Price strategy is an art and a Science. So,
it involves both market data and careful
calculations.

The Marketing Mix
 What is the value of the product or
service to the buyer?
 Are there established price
points for products or services in
this area?
 Is the customer price sensitive? Will
a small decrease in price gain you
extra market share?
 Will a small increase be
indiscernible, and so gain you extra
profit margin?
 What discounts should be offered
to trade customers, or to other
specific segments of your market?
 How will your price compare with
your competitors?
Price:PricingStrategy

 Placement or distribution is a very important part of the product mix.
 Marketers have to position and distribute the product in a place that is
accessible to potential buyers.
Marketing Mix
Place
 This comes with a deep understanding of your
target market.
 Understand them inside out and you will
discover the most efficient positioning and
distribution channels that directly speak with
your market.
Place is concerned with building channel of distribution
and formulating distribution strategies. There are many
distribution strategies, including:
•Intensive distribution
•Exclusive distribution
•Selective distribution
•Franchising distribution

Marketing Mix
Place:DistributionStrategies
 Typical consumer
durable products are best
example of intensive
distribution strategy.
Intensive Distribution: Exclusive Distribution: Selective Distribution: Direct Distribution:
 For example – In an
urban city, Armani might
have 2-3 outlets at the
maximum
whereas Zara might have
4-5.
 When the company is
having a mass
marketing product, then it
uses intensive distribution.
 Intensive distribution tries
to cover as much of the
market as it can.
 A company like Armani,
Zara or any other such
branded company will have
selective distribution.
 These companies are likely
to have only limited
outlets.
 If Zara has 4-5 outlets in
a city, how many outlets
would a company
like Lamborghini have?
Probably one in a region
of 5-7 cities.
 That’s exclusive distribution.
 If a company wants to
give a big region to one
single distributor then it
is known as exclusive
distribution strategy.
 Direct distribution is
when the company
either directly sends
the product to end
customer or when
the channel length is
very less.
 A company selling on an e-
commerce portal or selling
through modern retail is
the form of Direct
distribution.

 Promotion is a very important component of marketing as it can
boost brand recognition and sales. Promotion is comprised of
various elements like:
 Sales Organization
 Public Relations
 Advertising
 Sales Promotion
 Within the framework of the 4ps,promotion refers primarily to
marketing communications these communications use channels
such as public relations, advertising ,direct marketing ,email
marketing.
 Social media marketing or sales promotions; think of its as any way
marketers disseminate relevant product information to their target
customers.
 Promotion is the area that has arguably seen the greatest growth
and change as a result of the digital age.
 Marketers can now promote products easier ,more effectively and
with more personalization than ever before, thus leading to
greater outcomes and ever increasing expectations.
Marketing Mix
Promotion:
New
Product!!!

Marketing Mix
Promotion:CommunicationChannels
 Advertising: Advertising is any paid form of media communication. This
includes print ads in magazines, trade journals and newspapers, radio and TV
announcements, Web-based visibility-building, and billboards. Advertising is
a nonperson promotional activity because the seller has no direct contact
with the potential customer during the communication process.
 Sales Promotions: In-store demonstrations, displays, contests and price
incentives (50% off, buy-one-get-one-free) are sales promotion techniques.
 Public Relations: These activities promote a positive image, generate
publicity and foster goodwill with the intent of increasing sales. Generating
favorable media coverage, hosting special events and sponsoring charitable
campaigns are examples of public relations.
 Direct Marketing: A form of advertising aimed directly at target customers
(usually in their homes or offices) that asks the receiver to take action, such
as ordering a product, clipping a coupon, phoning a toll-free number or
visiting a store. Catalogs, coupon mailers and letters are common forms of
direct marketing.
 Personal Selling: Face-to-face communication between buyer and seller.

Building Customer Relationships Relationships are built first by contact, secondly by trust and thirdly
by value.
 When I have met you and got to know you, then I may learn to
trust you.
 And then relationships only really blossom when both sides get
something of practical value out of them.
 In relationship marketing, the relationship is sometimes person-
person, for example when a direct sales force connects with
individual customers.
 More often, it is between the customer and the company, where
the company is represented by its products, its websites, its
literature, its service department and so on.
 Building the relationship starts with first contact, whether this is
completing an online form, talking on the phone, etc.
 It continues with subsequent contacts which may also be personal
or remote.
 The important factor is that the customer should think that
company cares about them and remembers them.

Building Customer Relationships
 Customer Perceived Value:
 Customer perceived value is the evaluated value
that a customer perceives to obtain by buying a
product.
 It is the difference between the total obtained
benefits according to the customer perception
and the cost that he or she had to pay for that.
 It is the difference between the total customer
value and total customer cost.
Monetary
Cost
Psychic
Cost
Energy
Cost
Time
Cost
Total
Customer
Cost
Personal
Benefit
Product
Benefit
Service
Benefit
Image
Benefit
Total
Customer
Benefit
 For example: while buying a car the customer
evaluates whether the particular car would
provide the comfort or usability and also can
include the mileage a car gives.

 Basic Relationships:
 Basic relationships are often used by a company with
many low-margin customers.
 Under this relationship, there is no lasting or face to face
connections between the company and the customers.
 This image contains a bag of chips.
 The reasoning behind why the purchase of this bag of chips is
only a Basic Relationship is because there is no lasting or face-
to-face connections between the customers and the company
 You just eat the bag of chips and its gone.

 This image contains the IPhone X
produced by apple.
 Full Partnerships:
 The reasoning behind why this purchase can be considered a Full
Partnership because there is a lasting connection between the
customers and company
 People use their phones everyday basically
having a cell phone in general a necessity rather
than just the iPhone.
 Apple provides great customer support
and set up for their products.
 Full partnerships are used in markets
with few key customers and high
margins.
 In this partnership there is a lasting or
face to face connection between the
customers and the company.
 The company provide great customer
support and set up for their products.

Nazmus Shakib
ID: 01180110301

 CRM is an enterprise wide business
strategy designed to optimize
profitability, revenue and customer
satisfaction by organizing the enterprise
around customer segments, festering
customer, satisfying behaviors and liking
processes from customers through
suppliers .
Marketing
Customer Service Support
Sales
Customer Relationship Management
System
 CRM's core strength is an ability to
glean insight from customer feedback
to create enhanced, solid and focused
marketing and brand awareness.
 Key motivating drivers for the
development of more innovative CRM
strategies are Web technologies and a
sharpened global focus on customer
loyalty.
 CRM provides a way to directly
evaluate customer value. For
example, a business that is genuinely
interested in its customers is
rewarded with customer and brand
loyalty. Because CRM is mutually
advantageous, market share viability
advances at a sound pace.
 Using customer data and feedback,
companies utilizing this marketing
strategy develop long-term relationships
with customers and develop laser-
focused brand awareness.
 Customer relationship marketing varies
greatly from the traditional transactional
marketing approach that focuses on
increasing individual sale numbers.

 Delivering Customer Experience: By becoming customer-centric and
focusing on customer relationships, companies align their touchpoints and
work across the organization to meet customer needs, improve satisfaction,
and deliver an exceptional experience.
 Gathering Customer Feedback: Building strong relationships with
customers requires communication, and companies put more stock in
gathering feedback and analyzing it to make better business decisions to build
stronger relationships.
 Improving Customer Profitability: Customers that are loyal to brands spend
more with them; in fact, consumers are now putting customer experience
ahead of cost when making purchasing decisions.
 Creating Customer Advocates: The happier your customers are, the better
the chances they will spread the word about you to others; when you build a
strong relationship with them and deliver a consistent experience, they have
better reviews to share.
 Benefits:

Customer Centricity:  Customer centricity is a strategy that distinguishes
between the best customers and less profitable
ones.
 Angel customers are profitable, whereas demon
customers may actually cost a company more to serve
than it makes from them.
 Here the Best Customers are known as
Angels and the less profitable one is
known as Demons.
 The aim is to embrace the Angels
and ditching the Demons.
 Demon customers attempt to extract as much value
as possible out of the seller.

Types Of Customer Relationship Groups
Butterflies
True
Friends
BarnaclesStrangers
Projected Loyalty High
PotentialProfitability
High
Low
 In order to fulfill the marketing strategy and
capture maximum value from customers, the
firm must build the right relationships with the
right customers.
 In order to do so, the Customer Relationship
Groups model can be used.
 It classifies customers based on their potential
profitability for the company and leads to a way
to manage the relationships with the different
categories of customers accordingly.
 This is due to the fact that each group of
customers requires a different relationship
management strategy.
 The names of these groups already indicate the
specific relationship management strategy
required, based on the projected profitability of
that group for the business.

• Butterflies:
 Butterflies are good for the company.
 They are at least potentially profitable, although not loyal.
 Butterflies have needs that fit the company’s offerings.
 Like real butterflies, enjoy them only for a short while and
then they will be gone.
 Therefore it is very hard to build a long-term relationship
with butterflies.
 Attempts to do so are rarely successful.
 According to the relation management strategy the
company should enjoy the butterflies for the moment.
 As long as they are profitable after that ,when they become
unprofitable, the firm should stop investing in butterflies.

• True Friends:
 True friends are the best customers for any company from
all customer relationship groups.
 In contract to other groups they are profitable and at the
same time loyal.
 The fit between their needs and the same time loyal. The fit
between their needs and the company’s offerings is very
strong.
 The firm should totally focus on acquiring true friends and
maintaining relationships with them.
 The relationship management strategy involves making
continuous investments in the relationship to not only
satisfy these customers , but to delight them.

• Strangers:
 Strangers offer only low potential profitability. Offer
little projected loyalty.
 The gap between the company’s offerings and the
strangers need is just too large.
 They simply do not fit the company’s offerings and
consequently are not profitable.
 According to the relationship management strategy
for stranger is rather simple: don't invest anything in
them, which is to say that strangers should be
dropped immediately.

• Barnacles:
 Barnacles are highly loyal in contrast to strangers and
butterflies but they are not profitable.
 Between barnacles needs and the company’s offerings,
there is only very limited fit.
 However, they do it over a long period of time and
regularly.
 Between barnacles needs and the company’s offerings,
there is only very limited fit. However, they do it over a
long period of time and regularly.
 Example: Barnacles are few regular customers of a bank.
They deposit regularly but only in such tiny amounts that
the returns generated by them are too low to cover the
costs of maintaining their accounts.
 They are customers and loyal one’s as well but
that does not mean that they are desirable.
 Therefore, barnacles may be the most
problematic customers of a business since, they
are still loyal customers.
 The relationship management strategy calls for
attempts to increase their profitability for the
firm by trying to sell them more or by raising
fees, may be even by reducing service to them.
 If they cannot be made profitable, which will
often be the case, barnacles should be
dropped.

Customer-Driven
Marketing Strategy:
Creating Value
For Target Customers

Market Segmentation
 The market segmentation is mentioned as
being one of the key elements of modern
marketing and is, as mentioned the process of
dividing large heterogeneous markets into
small markets that can be reached more
efficiently and effectively with products and
services that match their unique needs.
 Segmentation is one of the most important
concepts in marketing.
 Firms vary widely in their abilities to serve
different types of customers.
 Hence, rather than trying to compete in an
entire market, firms should segment the
market.
 Through the process of market segmentation,
firms will identify those parts, or sections of
the market, that they can serve best.

Market Segmentations
Variables Of Segmenting Consumer Markets:

Tanjim Tabassum
ID: 01180110313

 It is important to segment according to geography
due to the fact that the purchasing behaviour of
the customers are influenced on where they live,
work etc.
 The geographic segmentation divides customers
into segments based on geographical areas such as
nations, states, regions, cities, countries or
neighbourhoods.
 Geographic segmentation is useful when there are
differences in a location where a product is
marketed.
Geographic
Segmentation

Segmentation
Base
Variable 1 Variable 2 Variable 3 Variable 4 Variable 5
Regions Northern Southern Western North Western Pacific
Cities Capital Metropolitans Towns Major Cities Minor Cities
Continents Asia North America Africa Australia Europe
Climate Tropical Hot Humid Cold Rainy
Areas Urban Rural Sub-Urban Division District
Geographic Segmentation

 The demographic segmentations divides customers
into segments based on demographic values such as
age, gender, family life cycle, family size, income,
occupation, education, religion, race, generation,
social class and nationality.
 The demographic segmentation is often used in
market segmentation for the reasons that the
variable are easy to identify and measure.
Demographic
Segmentation

Segmentation
Base
Age 0-6 7-12 12-19 20-35 50-60
Sex Male Female Transgender - -
Income Under 10,000 10,000-20,000 30,000-50,000 70,000-100,000 Over 100,000
Family Life-Cycle Bachelorhood Honeymooners Parenthood
Post
Parenthood
Dissolution
Family Size 1-2 3-4 5-6 7-10 10+
Demographic Segmentation

Segmentation
Base
Occupation Military Technical Medical Professional Students
Education School High-School College Graduate Post-Graduate
Religion Muslim Hindu Christian Buddhist Jew
Nationality Bangladeshi American British Japanese European
Social Class Lower Upper Lower Middle Lower Upper Upper
Demographic Segmentation

 Psychographic segmentation divides people
according to their attitudes, values, lifestyles,
interests and opinions.
 These characteristics may be observable or not.
 Identifying these important factors can be a
powerful way of marketing the same product or
service to people.
 Every prospect or client/customer has a different
psychographic make up.
 Analyzing that make up and grouping similar
characteristics together is the start of
psychographic segmentation.
Psychographic
Segmentation

Segmentation
Base
Lifestyle Athletes
Office
Goers
Students
Culture
Oriented
Outdoor
Oriented
Personality Ambitious Compulsive Generous Gregarious Authoritarian
Interests Adventure Knowledge Attention Sports Business
Psychographic Segmentation

 Behavioral segmentation is defined as the process
of dividing the total market into smaller
homogeneous groups based on customer buying
behavior.
 Behavioural segmentation is based on the
customer’s attitude toward use of or response to a
product.
 Many marketers believe that the behavioural
variables such as occasions, benefits, user status,
usage rate, loyalty statues and attitude are the
best starting points of market segmentation.
Behavioural
Segmentation

Segmentation
Base
Occasions
Regular
Occasions
Wedding
Occasions
Religious
Occasions
Business
Occasions
University
Occasions
Benefits Quality Service Economy Speed Efficiency
User Status Regular User Non-User Ex-User First Timer Potential User
Loyalty Status
Hardcore
Loyal
Shifting Split Conditional None
Readiness Aware Unaware Informed Interested Desirous
Attitude Positive Negative Neutral Hostile -
Behavioral Segmentation

Requirements for Effective Market Segmentations
There are some requirements for effective
segmentation, market segments must
follow these requirements. The following
figure explains the fact:
Measurable
Accessible
Substantial
Differentiable
Actionable

1)Measurable: The size, purchasing power and profiles of the
segments can be measured in order to ensure qualification. Certain
segmentation variables are difficult to measure. For example there
are approximately 30.5 million left-handed people in the United
States which is nearly the entire populations of carder. Yet few
products are targeted toward this left-handed segment.
2)Accessible: The segment should be reachable and serviceable. It
should be accessible through existing marketing institutions such as
distribution channels, advertising media and sales force. There
should be middlemen to distribute the products. Suppose, a
fragrance company finds that heavy users of its brand are single
men and women who stay out late and socialized a lot. Unless this
group lives or shops at certain places and exposed to certain media,
its members will be difficult to reach.

3)Substantial: The segment should be substantial. It should be
large enough in term of customers and profit potential. It
should justify the costs of developing a separate marketing mix.
For example for an automobile manufacturer to develop cars
especially for people whose height is greater than seven feet.
4)Differentiable: The segments are conceptually distinguishable
and respond differently to different marketing mix elements and
programs. There must be clear-cut basis for dividing customers into
meaningful homogenous groups. There should be differences in
buyer’s needs, characteristics and behaviour for dividing in groups.
If men and women respond similarly to marketing efforts for soft
drinks, they do not constitute separate segments.

5) Actionable: Effective programs should be able to design and
implement the marketing mix to serve the segments.
For example although one small airline identified seven market
segments, its staff was too small to develop separate marketing
programs for each segment.

Jannatul Ferdous
ID: 01180110273

Local
Marketing
Individual
Marketing
Marketing Strategies
 Target Market Strategies
 A target market is defined group most likely to buy a
company's product or service.
 There are different types of target market strategies as well.
They are facing on an entire market with marketing mix.
 Concentrating on one segment and targeting many
segments with multiple marketing mixes.
 The following figure explains the fact:

1)Undifferentiated Marketing:
 Undifferentiated marketing is a method which is used to target as
many people as possible to advertise one message that markets
want the target market to know.
 It is also known as mass marketing.
 It focuses on common needs rather than what is different.
 Example: When television first came out, undifferentiated marketing
was used in almost all commercials across to a mass of people.

2)Differentiated Marketing:
 Differentiated marketing is a practice in which different messages are advertised to
appeal to certain groups of people within the target market.
 Differentiated marketing however is a method which requires a lot of money to pull off.
 Due to messages being changed each time to promote a different message.
 Differentiated marketing also requires a lot of time and energy and resources.
 Invested all the times money and resources can be worth it if done correctly and
different messages can successfully reach through targeted group of people.
 The goal of this marketing is to achieve higher sales and stronger position.

3)Concentrated Marketing:
 Concentrated marketing is a marketing approach in which
most of the marketing efforts are focused on a specific
consumer on market segment.
 It is also known as niche marketing.
 Example: A company might target a product especially for
teenage girls.

4) Micro marketing:
 Micro marketing is a marketing strategy in which
marketing and advertising efforts are focused on a small
group of the taste of specific individuals and locations.
 Example: Markets can be grouped into narrow clusters
based on commitment to a product class or reediness
to purchase a given brand.
 There are two parts of micromarketing like- (a) Local
marketing (b) Individual marketing.

a. Local Marketing: Local marketing is a marketing strategy that
targets customers by a finely grained location such as city or
neighbourhood. It is used by small-local business to conserve
resources and develop unique advantages by reaching the
customers closest to them.
a. Individual Marketing: Individual marketing is a marketing
strategy by which companies leverage data analysis and digital
technology to deliver individualized messages and product
offerings to current or prospective customers. It is also known as
personalized marketing or One-to-one marketing.

 Differentiation Strategies
Product Differentiation
Service Differentiation
Channel Differentiation
People Differentiation
Image Differentiation

Product Differentiation
 Product Differentiation refers to differentiating the market
offer based on features, performance, style or design.
 A sandwich-maker could differentiate itself by offering
healthy, low-fat products.
 A car manufacturer might use extremely large engine as a
point of differentiation.
 Thus, your product is better, faster, cheaper, healthier,
greener etc.

Service Differentiation
 Service Differentiation is based on aspects such as speedy
or careful delivery, opening hours, customer care etc.
 Thus, the service is differentiated.
 For instance, an airline could differentiate itself by means
of extraordinary customer care and very attentive and
graceful stewardesses.
 This type of differentiation may then become experience
differentiation.

Channel Differentiation
 A firm can also gain competitive advantage
by channel differentiation.
 This means that the firm differentiates
itself by differentiating their channel’s
coverage, expertise and performance.
 So how does the firm get goods to the
customer?
 It might be through a smooth-functioning,
speedy direct channel.

People Differentiation
 Companies can also differentiate
themselves by people
differentiation.
 People differentiation means
nothing else than hiring and
training better people than
competitors do.
 Staff can be more friendly,
competent, courteous etc.
 Certainly, this mainly appeals to
customer contact staff.

Image Differentiation
 Image Differentiation refers to the image a company or a brand has
in consumers’ minds.
 The development of a strong and distinctive image requires
creativity and a lot of work.
 Only over a long period, an image in consumers’ minds can be
attained.
 If you want to differentiate your company by high quality, this image
must be supported by absolutely everything your company does.
 An aid for image differentiation are symbols, such as the Nike
swoosh or Apple’s logo.
 These provide a strong brand recognition and thereby contribute to
image differentiation. Also, famous persons may be of help.
 For instance, H&M built a brand around a famous person,
David Beckham, to develop its image differentiation.
 Image differentiation may
be the hardest form of
differentiating a company.
 The company has to build a
personality around a brand
that everybody knows and
immediately thinks of.
 This is the strongest differentiation
strategy.

Conclusion
Hence, to conclude we have to agree to the following facts:
 The core concepts of marketing viz. market, needs, wants,
demands, value, customer satisfaction, exchange, target market,
de-marketing, marketing myopia, market segmentation etc. are
pre-requisites to both actual and potential marketers.
 In order to market a product or service successfully one must
know the marketing mix, marketing management concepts etc.
 Choosing target markets and segmenting those in accordance is
vital for any marketer.
 Applying various target market and differentiation strategies are
also vital to efficient marketing.
 But above all, building and maintaining profitable and successful
customer relationships is the key to marketing efficiency.
Marketing
Rules
1. Customer is always right.
2. If customer is wrong
follow the first rule.

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