Four Major Steps in Designing a Customer-Driven

Topics: Marketing, Strategic management, Target market Pages: 2 (371 words) Published: September 14, 2013
The four major steps in designing a customer-driven marketing strategy are Market Segmentation, Market Targeting, Differentiation and Positioning. Market Segmentation

Market segmentation is the process of dividing up the total market (all the people the organisation can sell its products or services to) into identifiable, measurable and discrete groups who share some common characteristics or needs and whose attitudes or reactions towards communications messages about products or services might be similar.

Market Targeting

Once an organisation has identified a range of possible segments within the market, it begins the targeting process. As highlighted in the modified Figure 6.1 , this consists of developing measures of the attractiveness of the segments and selection of the segments to target. This process is a re-evaluation of the segments and the profiles matched against the core competencies and resources (what the organisation actually offers from the service or the experience) to identify which are the most attractive segments to target.

Differentiation

Regards to differentiation, there are a few strategy example product differentiation, Service differentiation, channel differentiation, people differentiation and image differentiation. The difference to promote can be important, distinctive, Superior, communicable, pre-emptive, affordable and profitable.

Positioning

The product positioning process consist of making any fine adjustments to the service offering in the light of research conducted in the marketing planning process and then the creation of an “image” of the service which meets the target market values. This position can be made up of the core competencies or the specific value requirements of the target group. For each target segment, adjustments are made in the marketing mix.

Scott McCabe, Chapter 6 - Segmentation, Targeting and Positioning, Marketing Communications in Tourism and Hospitality,...
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