Class Notes (807,638)
Canada (492,764)
Marketing (1,386)
MKT 100 (968)

MKT Module 5.docx

6 Pages
Unlock Document

Ryerson University
MKT 100
Brynn Winegard

Module 5 -1 Customer Focus and Positioning Customer focus is about how you focus your efforts to attract, serve and retain customers, and which customers you focus on with such efforts. Focusing on profitable customers, superior analysis of their needs and fitting your offering to their needs and benefits sought are key elements of competitive thinking and positioning Market segmentation is dividing the market into groups of customers by their profitability and preferences, then determining what drives each group’s profitability and preferences. Positioning is designing the features/ functions of your offering to satisfy a customer segment that you have selected to target. In practice, such positioning is called quality function deployment (QFD). You are deploying your quality to improve the functions that are most useful to your target segment, for a product or service. Customer profitability drivers First Step 1. customer purchases of high margin products and services 2. the sheer quantity of purchases made per year (size of the customer) 3. low selling costs to the customer, low delivery costs and low after-sales service costs 4. # very satisfied customer brings to the company through referrals, recommendations and casual and explicit endorsements of your products and services. 2nd Step- Positioning The firm deploys or invests its resources in what it believes to be the key drivers of customer profitability so as to develop profitable competences and competitive advantage.Benefit Feature Segmentation Consumers use product benefits and features as instruments or tools to achieve a new desired state, be it physical, emotional, intellectual or spiritual. -Our behaviour is motivated by a desire (sometimes called a need or a want) to move from our current perceived situation to a new physical/intellectual/emotional/spiritual state. The utility or quality of a product or service is the sum of all the benefits it delivers in moving us along the paths to our physical, emotional, intellectual and spiritual goals. Market segments are based on the structure of such variance and as the structure of this variance changes, so market segments change, morphing around new product features, services and channels of distribution Sec 3 Positioning In terms of marketing decision-making, quality is in the eye of the target benefit segment. Buyers will choose a product based on quality when they perceive a product’s quality to be higher than a competitor’s quality in product benefits provided and on quality dimensions important to them a customer focus means a product positioning and design focus on product quality/benefits desired by the target segment. . QFD is the deployment of quality, technology and the resources of the firm to ensure a product or service is competitively positioned to target and deliver the desired customer function, benefits and satisfaction If the connections/correlations between a segment’s most important benefits and the product’s features are not there, then the product is poorly positioned to serve the needs of the customer segment.Sec-4 Channel/Contact Segmentation Customer focus and segmentation around the customers’ distribution/communication channel usage is very common: It guarantees segment accessibility. But these segments are almost always further sub-segmented into different product benefit/feature usage segments to which various products or models in the product line are targeted. These sub-segments are then tracked for their profitability and the team responsible for, say, high-end, high-performance Fuji digital cameras sold on the Internet will have profit contribution goals and responsibility, along with associated achievement incentives. Along with its incredible search capability, the Internet offers consumers channel access to a vast selection of supply (products or services) that a single brick and mortar channel could never stock or offer. Where traditional channels stock and sell best sellers, the Internet can cater to much broader and varied tastes and preferences. -This is what contact segmentation and modern channel management is about: catering to a much greater range of customer preferences and demand. 3D Customer Focus Sec 5 The three dimensions are: D1. Customer profitability or potential profitability. What drives customer profit
More Less

Related notes for MKT 100

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.