Creating Value for Targeted Market Segments Presented by: Christian Gudino, Alec Monaco, Chad Sorensen, Ben Sullivan. The Customer-Driven Marketing Strategy

Topic Agenda Components of a Customer-Driven Marketing Strategy Customer Selection Process The Value Proposition Unique Selling Propositions Applying These Concepts to a Realistic Example

Outlining the Process Segmentation Divide the total market into smaller segments. Targeting Select the segment or segments to enter. Differentiation Differentiate the market offering to create superior customer value. Positioning Position the market offering in the minds of target customers. Create Value for the Targeted Customer Model for Creating a Customer-Driven Marketing Strategy Customer SelectionValue Proposition

Selected Brand Little Caesar’s Pizza Founded May, Estimated to be 3rd largest pizza chain in U.S. Located in over 20 countries on 4 continents.

The Customer Selection Process Involves dividing the mass market into smaller segments with similar characteristics. Once a company has segmented the market, it must choose at least one segment to target. Customer Selection Segmentation Divide the total market into smaller segments Targeting Select the segment or segments to enter

Methods of Segmentation Geographic Dividing a market based on geography. Examples include: ●Nation ●Region ●State ●County ●Population Density ●Climate Demographic Dividing a market based on any of the following variables: ●Age ●Life-cycle Stage ●Gender ●Income ●Occupation ●Education ●Religion ●Ethnicity ●Generation

Methods of Segmentation Psychographic Dividing a market based on: ●Social class ●Lifestyle ●Personality

Methods of Segmentation Behavioral Dividing a market based on customer knowledge or responses. Such as: ●Occasion ●User Status ●Usage Rate ●Loyalty Status

Effective Market Segmentation

Market Targeting Market Targeting Strategies BroadNarrow Undifferentiate d ●Mass marketing Differentiated ●Segmented marketing Concentrated ●Niche marketing Micromarketing ●Local marketing ●Individual marketing

The Value Proposition Can be created once customer selection process has ended. Describes how a company will differentiate its brand, and what position it will hold in the market. Value Proposition Differentiation Differentiate the market offering to create superior customer value. Positioning Position the market offering in the minds of target customers.

Points of Differentiation Product Differentiation Channel Differentiation Service Differentiation Image Differentiation People Differentiation

The Competitive Advantage An advantage over competitors gained by offering greater customer value. This can be achieved through lower pricing, higher benefit, or a combination of both. Communicable PreemptiveSuperior ImportantAffordable DistinctiveProfitable

Unique Selling Proposition Can be selected once enough points of differentiation are found. Describes the single most important and defining aspect of a product. This way, marketers can tout their product as the “number one” selection for that aspect.

Positioning Map

Positioning Strategies Shows nine strategies for positioning a product or service. Those marked in green are “winning propositions.” Those in red are “losing propositions.”

Positioning Statement To (target segment) who (need satisfied), our (brand) is a (concept) that (point of difference). To the hungry pizza-lover who needs a quick, low-price meal, Little Caesar’s is a carryout pizza chain that offers ready-to-eat pizza cheaper and faster than any other restaurant.

Geoffrey Moore’s Enhanced Positioning Statement For (target segment) Who are dissatisfied with (the current alternatives) Our product is a (product category) That provides (key value-creating capabilities) Unlike (competing alternatives) We have assembled (key product features).

Conclusion Segmentation Divide the total market into smaller segments. Targeting Select the segment or segments to enter. Differentiation Differentiate the market offering to create superior customer value. Positioning Position the market offering in the minds of target customers. Create Value for the Targeted Customer Customer SelectionValue Proposition

References Armstrong, G., Kotler, P. (2014). Principles of Marketing. Upper Saddle River, NJ: Pearson Education Inc. Barrett, L. (Dec., 2012). Pizza Power 2013 State of the Industry Report. PMQ. Retrieved from: Industry-Report/ Experts Mind. (Nov. 8th, 2012). Market Segmentation. Retrieved from: segmentation aspx Little Caesar’s. (n.d.) Little Caesar’s Milestones. Retrieved from: Moore, G. A. (1991). Crossing the Chasm, 3rd Edition. New York, NY: HarperCollins Publishers. PR Newswire. (n.d.) Little Caesar’s Pizza Announced 700 New International Restaurants. Retrieved from: little-caesarsreg- pizza-announces-700-new-international-restaurants html Walsh, T. (June 25, 2013). Little Caesar’s Rises to Nation’s No. 3 Pizza Chain. Detroit Free Press. Retrieved from: Top-7-pizza-chains-Little- Caesars-moves-up-a-notch