Designing Customer Driven Marketing Strategy

1412 Words Nov 30th, 2012 6 Pages
Designing Customer Driven Marketing Strategy:
Now-a-days companies recognize that they can not appeal to all buyers in the marketplace or at least not to all buyers in the same way. Buyers are too numerous, too scattered, and too varied in their needs and buying practices. Moreover, the companies themselves vary widely in their abilities to serve different segments of the market.

There are 4 steps of designing customer driven marketing strategy. They are described below:

(i) Market Segmentation:
Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large heterogeneous markets into smaller segments that can be reached more efficiently and
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5. Actionable: Effective programs can be designed for attracting and serving the segments. ECONO DX fulfills all these five criterions.

(ii) Market Targeting:
Market segmentation reveals the firm’s market segment opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can serve best. In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.

Firstly, the company must collect and analyze data on current segment sales, growth rates and expected profitability for various segments. But “right size and growth” is a relative matter. The largest, fastest-growing segments are not always the most attractive ones for every company. Smaller companies may lack the skills and resources needed to serve the larger segments.

Secondly, the company also needs to examine major structural factors that affect long-run segment attractiveness. For example, a segment is less attractive if it already contains many strong and aggressive competitors. The existence of many actual or potential substitute products may limit prices and the profits that can be earned in a segment. The relative power of buyers also affects segment attractiveness. Buyers with strong bargaining power relative to sellers will try to force prices down, demand more services, and set competitors against one another- all at the