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MKT 100 Study Guide - Quality Function Deployment, Oberheim Matrix Synthesizers, Vertical Service Code

5 pages100 viewsWinter 2011

Department
Marketing
Course Code
MKT 100
Professor
Paul Finlayson

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MODULE 5
CUSTOMER FOCUS AND POSITIONING
Market segmentation: dividing the market into groups of customers by their
profitability and preferences, then determining what drives each groups
profitability and preferences
Positioning: designing features/functions of your offering to satisfy a customer
segment that you have selected to target, called quality function deployment
(QFD)
Targeting (or product/service positioning): how to focus efforts to serve customers
Best way to segment markets using criterias such as sustainability (segment size) ,
accessibility (segment can be reached efficiently) and fit (with company capabilities)
Segmentation variables for consumer markets:
1. Geographic world region, climate zone, weather, country, state,
province
2. Demographic age, life-stage, income, family size, generation,
occupation
3. Psychographic lifestyle, interest, hobbies, personality, social class
4. Behavioural product consumption, channel usage, brand loyalty,
product benefits
First step in customer focus is to identify direct determinants (drivers) of customer
profitability:
1. Customer purchases of high margin products and services
2. 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. Satisfied customer brings to the company through referrals,
recommendations and casual and explicit endorsements of products and
services
Second step in customer focus is positioning; invests resources into key drivers of
customer profitability to develop profitable competence and competitive advantage
BENEFIT-FEATURE SEGMENTATION
Behaviour is motivated by desire (need or want) to move from our current perceived
situation to a new physical/intellectual/emotional/spiritual state
Path from current to desired situation not often straight but has to be
negotiated around situational realities (lack of time or income, other
obligations, moral constraints)
Utility or quality of a product or service is the sum of all benefits it delivers in
moving us along paths to our goal
Maslows priority of needs theory: physical needs (food, shelter, medical care) as
our first priority, emotional (love, affection), and self-actualization (different for
everyone)
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MODULE 5
POSITIONING: FITTING FEATURES TO BENEFITS DESIRED
Customer focus means product positioning and design focus on product
quality/benefits desired by target segment
Juran quality planning road map identifies customer needs, what qualities the
product or service must have to meet and exceed customer needs, and then deliver
such quality
Quality function deployment (QFD): developed by Yoji Akao, is the deployment
of quality, technology and resources of the firm to ensure product or service is
competitively positioned to target and deliver desired customer function, benefits
and satisfaction
Matrix visually represent connection (correlation) between customer needs/benefits
and measured product specifications of product/service
Quality function deployment process involves:
1. Identify benefits desired by target segment and measure their importance
2. Obtain segment perceptions of each of the alternatives performance on
each benefit
3. Weight each segments average perception rating of each benefit delivered
by its important rating; sum of each alternative
4. Lost product specifications/features and alternatives engineering rating
on each specification/feature
5. Connect product engineering specification/features to benefits in benefit
specification matrix
6. Develop and design new product with new specifications and features that
have strong correlation with most important benefits that you can most
profitably add
7. Measure and compare the new products quality/utility score
CHANNEL/CONTACT SEGMENTATION
Customer focus and segmentation around customers’ distribution/communication
channel usage is common, efficient and effective
These segments further sub-segmented into different product benefit/feature
usage segments to which various products or models in product line are
targeted
Channel segmentation innovative in communication and distribution to customers
occurring around the global marketplace
Such innovation is changing traditional ways of doing business, distributing
products and how to best segment markets by contact/channel
Caters to greater range of customer preferences and demand
3D CUSTOMER FOCUS
Common sense goal of customer segmentation:
1. To design products and services that fit their features and price to the
usage situation
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