Customer Driven

marketing Strategy
 Market Segmentation

 Dividing the market into smaller group with

distinct needs, characteristics, or behaviors
who might require separate products or
marketing mixes
 Ways of Market Segmentation
Consumer Market
 Geographic Segmentation
 Demographic segmentation
 Psychographic segmentation
 Behavioral segmentation
 Geographic
 Dividing a market into different geographical
units such as nations, states, regions, countries,
cities or neighborhood
 Country
 City
 Density (Urban, Sub Urban, Rural)
 Climate
 Demographic
 Dividing a market into groups based on
variables such as age, gender, family size,
family life cycle, income, occupation,
education, religion, race, generation, and
nationality
 Psychographic
 Dividing a market into different groups based
on social class, lifestyle or personality
characteristics
 Behavioral Segmentation
 Dividing a market into groups based on
consumer knowledge, attitude, use, or
response to a product
 Occasion segmentation
 Dividing a market into groups according to
occasion when buyers get the idea to buy
 Benefit segmentation
 Dividing a market into groups according to the
different benefits that consumers seek from the
product
 User status
 Usage rates
 Loyalty status
 Multiple segmentation Bases
 Business Market segmentation
 International Markets
 Requirements for effective
segmentation
 Measurable: size and purchasing power of the
segment can be measurable
 Accessible: The market segment can be
effectively reached and served
 Substantial: Profitable enough to serve
 Differentiable: Distinguishable, behave
different
 Actionable: Effective program can be design
 Market Targeting
 Target Market: A set of buyers sharing
common needs or characteristics that the
company decide to serve
 Evaluating Market segments
 Segment size and growth
 Segmental structural attractiveness:
competitor, Substitute product, Buyer power,
powerfull supplier
 Company objective and Resources
 Selecting Target Market segments
 Undifferentiated Marketing: Mass Marketing,
Target the whole market with common needs
 Differentiated Marketing: Firm decide to
target several market segments and design
separate offers for each..
 Concentrated Marketing: Firm goes after a
large share of one or a few segments or niches
 Micro Marketing
 Tailoring products and marketing programs to
the needs and wants of specific individuals and
local customer groups
 Local Marketing: tailoring brands and promotions to the
needs and wants of local customer groups, cities, stores
 Individual Marketing: Tailoring products and marketing
programs to the needs and preferences of individual
customer
 Differentiation and Positioning

Competitive advantage:
An advantage over competitors gained by
offering consumer greater value, either
through lower prices or by providing more
benefits that justify higher prices
 Choosing the right competitive
advantage
 How many differences to promote
 Which difference to promote
 Important
 Distinctive
 Superior
 Communicable
 Preemptive
 Affordable
 Profitable