Chapter – 7 : Consumer Driven Marketing Strategy Creating Value

for Target Customers:

• Fernando noticed that quality of tea available even at five-star hotels and
restaurants left much to be desired. Patrons seemed to prefer their home-
brewed tea to tea served in these places.
• Dilmah tea high-end, exciting, and fashionable. At Dilmah, teatime rocks.
• As a supplier of “pure Ceylon tea” authentic garden-fresh, single-origin “way it
used to taste.”
• Purchasing of tea was simply added on to supply contract of chosen coffee
supplier.
• Seven-Star Luxury.
• Fine wine, borrowing structure, depth, tone and strength.
• Strategic partnerships World Association of Chefs’ Societies to sharpen
synergy between tea and gastronomy.
• Formed a dominant taste ingredient. Parallels in tea and wine.
• Youth segment that was moving away from tea.
• T-series of radically different collections of designer gourmet teas including t-
cocktails t-mocktails.
• T-bars. Chic-and-trendy outlets selling Dilmah tea.
• Super-premium tea. Niche player anymore. Now world’s third-largest
standalone global tea.
• “Boutique” tea category contributing over 20 percent of the company’s turnover.
Principles of Marketing 1
By Prof: Zafarullah Siddiqui
Market Segmentation:

• Dividing a market into smaller group with distinct needs,

characteristics, or behavior that might require separate marketing
strategies or mixes.
• Market Targeting: The process of evaluating each market
segment’s attractiveness and selecting one or more segments to
enter.
• Differentiation: Differentiating the market offering to create
superior customer value.
• Positioning: Market offering to occupy a clear, distinctive, and
desirable place relative to competing products in the minds of
target consumers.
• Age and Life-Cycle Stage.
• Gender.
• Income.
• Social class, lifestyle, or personality characteristics.
• Iconic Punjabi movie “Maula Jat” Villain, Mustafa Qureshi,
• “Tagra Josh, Tagra Rang, Tagra Maza” (stong passion, strong color,
strong taste)

Principles of Marketing 2
By Prof: Zafarullah Siddiqui
Occasion Segmentation:

• Drink orange juice in morning. Orange growers have promoted

drinking orange juice as healthful at other times of day.
• Soft drink as an early morning pick-me-up.
• Drink on occasions like Diwali, Christmas, Eid.
• Athletic wear “Fit and Polish” benefit segment.
• User Status into nonusers, ex-users, potential users, first-time
users, regular users.
• Parents of soon-to-be-wed daughters.
• Emotional message.
• Good-quality, durable product for new house.
• Heavy users.
• Burger King targets “Super Fans,” young (age 18 to 34), eat at
Burger King an average of 16 times a month.”
• Apple has an almost cult-like following of loyal users.”
• Using Multiple Segmentation Bases.

Principles of Marketing 3
By Prof: Zafarullah Siddiqui
Multiple Segmentation Business:
• Social class.
• Knowledge, attitudes, uses or responses to a product.
• Consumers seek.
• United States and Canada have much in common, both differ
culturally and economically from neighboring Mexico.
• Dominican Republic is no more like Brazil than Italy is like Sweden
including 188 million Portuguese-speaking Brazilians a variety of
Indian dialects.
• Economic Factors.
• Political and legal factors.
• Cultural factors.
• Inter-market Segment are located in different countries.
• Segment Essentials
1. Measurable.
2. Accessible.
3. Substantial.
4. Differentiable.

Principles of Marketing 4
By Prof: Zafarullah Siddiqui
Selecting Target Market Segments:
• Undifferentiated marketing with one offer and designs.
• Differentiated Marketing: Concentrated (niche) marketing. Micromarketing (local or
individual marketing).
A Product for Every Customer:
• India AND Pakistan countries of diversity bearing on its marketing.
• Lifebuoy soap in 1895, Pears and Lux Flakes in 1902 and 1905, respectively.
• Dalda, Synonymous with vanaspati ghee over Rs.143,670 million $ 3.481 million) in
2007.
• Hygiene.

Consumer for last 75 years.

• India’s largest exporters.
• Manufactured in 40 factories across India.
• 1947: Pond’s Cold Cream.
• 1951: Prakash Tandon.
• 1959: Surf detergent.
• 1966: Taj Mahaltea launched.\1969: Rin bar.
• 1971: Clinic Shampoo.
• 1974: Liril Soap.
• 1978: Fair & Lovely.\1988: Lipton Taaza tea.
• 1991: Surf Ultra.
• 1992: Recognized as Star Tarding House.

Principles of Marketing 5
By Prof: Zafarullah Siddiqui
GMG Airlines:
• GMG Airlines started its operations in 1998 in Bangladesh 40 percent.
• Bold positioning.
• Despite low per capita income of Bangladesh, we knew that there were a
significant number of quality conscious Bangladeshis who were looking for a
much higher quality of service from airlines.
• Certain comfort level. before 1997, domestic air travel market in Bangladesh
was characterized by poor service, infrequent flights, and very low levels of
reliability.
• Deregulated in 1997.
• Private-sector airlines in the region had opted for a low-cost low-quality option.
• To compete with national airline on price, it had deep pockets of government
and scale on its side.
• Jet Airways model in India, premium”, airline with corporate mission of
providing first-class service to customers.
• Finest turbo-prop aircraft.
• European standards of engineering and brought in expatriate.
• GMG built its own infrastructure, both in sales and in airport locations.
• Finest candidates and trained them to international standards.
• Flights safety in Toronto.
• Reservation system
• Electric ticketing
Principles of Marketing 6
By Prof: Zafarullah Siddiqui
Market Segmentation:
• Dividing a market into smaller groups with distinct needs,
characteristics, or behavior that might require separate marketing
strategies or mixes.
• Market targeting: Process of evaluating each market segment’s
attractiveness and selecting one or more segments to enter.
• Differentiation: Actually differentiating market offering to create
superior customer value.
• Positioning: Arranging for a market offering to occupy a clear,
distinctive, and desirable place relative to competing products in minds
of target consumers.
• Geographic Segmentation: Dividing a market into different
geographical units such as nationals, states, regions, countries cities, or
neighbourhoods.
• Demographic Segmentation: Dividing market into groups based on
variable such as age, gender, family size, family life cycle, income,
occupation, education, region, race, generation, and nationality.
• Age and Life-cycle Segmentation: Dividing a market into different age
and life-cycle groups.
• Income Segmentation: Dividing a market into different income group.

Principles of Marketing 7
By Prof: Zafarullah Siddiqui
Using Multiple Segmentation Bases:
• Marketers rarely limit their segmentation analysis to only one or a
few variables. Rather, they often use multiple segmentation
bases in an effort to identify smaller, better-defined target groups.
Bank may not only identify a group of wealthy retired adults but
also within that group, distinguish several segments based on
their current income, assets, savings and risk preferences,
housing, and lifestyles.
• Psychographic Segmentation: Dividing a market into different
groups based on social class lifestyle, or personality
characteristics.
• Behavioral Segmentation: Dividing a market into groups based
on consumer knowledge, attitudes, uses, or responses to a
product.
• Occasion Segmentation: Dividing market into groups according
to occasions when buyers get idea to buy, actually make their
purchase, or use purchased item.
• Benefit Segmentation: Dividing market into groups according to
different benefits that consumers seek from product.

Principles of Marketing 8
By Prof: Zafarullah Siddiqui
International Segmentation:
• Segmenting international markets based on
geographic, economic, political, cultural, and other
factors assumes that segments should consist of
clusters of countries.
• Using inter-market Segmentation (also called cross-
market segmentation), they form segments of
consumers who have similar needs and buying
behaviors even though they are located in different
countries. Lexus targets world’s well-to-do- the
“global elite” segment regardless of their country.
• Coca-Cola creates special programs to target teens,
core consumers of its soft drinks world over.”

Principles of Marketing 9
By Prof: Zafarullah Siddiqui
Requirement for Effective Segmentation:
• To be useful, market segments must be:
• Measurable.
• Accessible.
• Substantial.
• Differentiable.
• Target Market: A set of buyers sharing common needs or
characteristics that company decides to serve.
• Undifferentiated (mass) marketing: A market-coverage
strategy in which a firm decides to ignore market segment
differences and go after whole market with one offer.
• Differentiated (Segmented) Marketing: A market-coverage
strategy in which a firm decides to target several market
segments and designs separate offers for each.
• Concentrated (niche) marketing: A market-coverage
strategy in which a firm goes after a large share of one or a
few segments or niches.

Principles of Marketing 10
By Prof: Zafarullah Siddiqui
Micromarketing:

• Practice of tailoring products and marketing

programs to needs and wants of specific individuals
and local customer groups includes local marketing
and individual marketing.
• Local Marketing: Tailoring brands and promotions
to needs and wants of local customer groups cities,
neighborhoods, and even specific stores.
• Individual Marketing: Tailoring products and
marketing programs to needs and preferences of
individual customers also labeled “one-to-one
marketing,” and “markets-of-one marketing.”

Principles of Marketing 11
By Prof: Zafarullah Siddiqui
Choosing a Targeting Strategy:
• Companies need to consider many factors when choosing a market-
targeting strategy. Company resources when firm’s resources are
limited, concentrated marketing makes most sense.
• Undifferentiated marketing is more suited for uniform products such
as steel. Products that can vary in design, such as automobiles, are
more suited to differentiation or concentration.
• Product’s life-cycle stage also must be considered, when a firm
introduces a new product, if may be practical to launch only one
version, and undifferentiated marketing or concentrated marketing
may make most sense.
• In mature stage of product life-cycle, however, differentiated
marketing begins to make more sense.
• Market variability, if most buyers have the same tastes, buy same
amounts, and react same way to marketing efforts, undifferentiated
marketing is appropriate. Competitors’ marketing strategies are
important. When competitors use differentiated or concentrated
marketing, undifferentiated marketing can be suicidal.

Principles of Marketing 12
By Prof: Zafarullah Siddiqui
Socially Responsible Target Marketing:
• Smart targeting helps companies to be more efficient and
effective by focusing on the segments that they can satisfy
best and most profitably.
• Targeting also benefits consumers companies serve specific
groups of consumers with offers carefully tailored to their
needs.
• Issues usually involve targeting of vulnerable or
disadvantaged consumers with controversial or potentially
harmful products.
• Marketers in a wide range from cereal and toys to fast food
and fashion have been heavily criticized for their marketing
efforts directed toward children.
• Product Position: Way product is defined by consumers on
important attributes place product occupies in consumers
minds relative to competing products.
• “Products are created in factory, but brands are created in
mind,”

Principles of Marketing 13
By Prof: Zafarullah Siddiqui
 Competitive advantage:
• An advantage over competitors gained by offering greater customer
value, through lower prices or by providing more benefits that justify
prices.
• To build profitable relationships with target customers, marketers must
understand customer needs better than competitors and deliver more
customer value.
• Differentiate along lines of product, services, channels, people or image.
• Product differentiation brands can be differentiated on features
performance, or style and design.
• Services differentiation through speedy, convenient, or careful delivery.
• Channel differentiation gain competitive advantage through way they
design their channel’s coverage and performance.
• People differentiation hiring and training people than their competitors.
• Image differentiation. A company or brand image should convey
product’s distinctive benefits and positioning.
• If Sony means quality, this image must be supported by everything
company says and does.
• Symbols such as McDonal’s golden arches, Tata’s ‘T”, Nike swoosh, or
Goolge’s colorful log can provide strong company or brand recognition
and image differentiation.

Principles of Marketing 14
By Prof: Zafarullah Siddiqui
Choosing Right Competitive Advantages:
• How Many differences to Promote: Marketers think that
companies should aggressively promote only one benefit to
the target market.
• Company should develop a unique selling proposition (USP)
for each brand and stick to.
• Wal-Mart promotes its always low prices and Burger King
promotes – “have it your way.”
• Other marketers think that companies should position
themselves on more than one differentiator. If two or more
firms are claiming to be best on same attribute.
• When mass market is fragmenting into many small segments,
companies are trying to broaden their positioning strategies to
appeal to more segments.
• Many buyers want these multiple benefits.
• As companies increase number of claims for their brands,
they risk disbelief and a loss of clear positioning.

Principles of Marketing 15
By Prof: Zafarullah Siddiqui
Which Differences to Promote:
• Important: Difference delivers a highly valued benefit to
target buyers.
• Distinctive: Competitors do not offer difference, or
company can offer it in a more distinctive way.
• Superior: The difference is superior to other ways that
customers might obtain same benefit.
• Communicable: Difference is communicable and visible
to buyers.
• Preemptive: Competitors cannot easily copy difference.
• Affordable: Buyers can afford to pay for difference.
• Profitable: Company can introduce difference profitable.
• Value proposition: full positioning of a brand full mix of
benefits upon which it is positioned.

Principles of Marketing 16
By Prof: Zafarullah Siddiqui
More for the Same:
• More-for-more positioning by introducing a brand offering
comparable quality but at a lower price.
• Toyota introduced Lexus line with a “more-for-the-same” value
proposition versus Mercedes and BMW.
• The Same for Less: Offering “same for less” can be a powerful
value proposition every one lines a good deal. Discount stores
such as Wal-Mart and Big Bazaar and “category killers”
• Less for Much Less: A market almost always exists for products
that offer less and therefore cost less.
• Consumers will gladly settle for less than optimal performance in
exchange for a lower price i.e. many travelers seeking lodgings
prefer not to pay for what they consider unnecessary extras,
such as a pool, or mints on pillow.
• Less-for-much-less positioning involves meeting consumers’
lower performance or quality requirements at a much lower price.
• More for Less: Winning value proposition to offer “more for
less”.

Principles of Marketing 17
By Prof: Zafarullah Siddiqui
Positioning Statement:
• A statement that summarizes company or brand positioning it takes
this form: To (target segment and need) our (Brand) is (concept) that
(point-of-difference).

• Once it has chosen a position, company must take strong steps to

deliver and communicate desired position to target consumers. All
company’s marketing mix efforts must support positioning strategy.

Hindustan Unilever:
• Personal wash, hair care, skin care, oral care, deodorants, laundry,
coffee, food.
• Surf Ki Kharidari Me Hi Samajhdari Hai,”
• Preity Zinta, “Liril Girl,” went on to become a top Bollywood actress.
• Micromarketing: Programs to needs and wants of specific
individuals.
• Local Marketing wants of local customer.
• Individual Marketing: Individual customers also labeled “one-to-one.
• Lingerie brand targets its Pink line of young, hip.

Principles of Marketing 18
By Prof: Zafarullah Siddiqui