The Customer-Driven Marketing Strategy

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

2. 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

3. Outlining the Process Model for Creating a Customer-Driven Marketing Strategy 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 Selection Value Proposition

4. Selected Brand Little Caesar’s Pizza • Founded May, 1959. • Estimated to be 3rd largest pizza chain in U.S. • Located in over 20 countries on 4 continents.

5. The Customer Selection Process Customer Selection Segmentation Divide the total market into smaller segments Targeting Select the segment or segments to enter • 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.

6. 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

7. Methods of Segmentation Psychographic Dividing a market based on: • Social class • Lifestyle • Personality

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

9. Effective Market Segmentation

10. Market Targeting Market Targeting Strategies Broad Narrow Undifferentiated • Mass marketing Differentiated • Segmented marketing Concentrated • Niche marketing Micromarketing • Local marketing • Individual marketing

11. 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.

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

13. 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. Important Communicable Affordable Distinctive Superior Preemptive Profitable

14. 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.

15. Positioning Map

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

17. 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.

18. 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).

19. 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 Selection Value Proposition

20. 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: http://www.pmq.com/December-2012/Pizza-Power-2013-State-of-the-Industry-Report/ Experts Mind. (Nov. 8th, 2012). Market Segmentation. Retrieved from: http://www.expertsmind.com/questions/market-segmentation-30122534.aspx Little Caesar’s. (n.d.) Little Caesar’s Milestones. Retrieved from: http://www.littlecaesars.com/AboutUs/Milestones.aspx 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: http://www.prnewswire.co.uk/news-releases/ little-caesarsreg-pizza-announces-700-new-international-restaurants-156840965.html Walsh, T. (June 25, 2013). Little Caesar’s Rises to Nation’s No. 3 Pizza Chain. Detroit Free Press. Retrieved from: http://www.freep.com/article/20130625/BUSINESS/306250105/ Top-7-pizza-chains-Little-Caesars-moves-up-a-notch