Running head: Customer driven marketing strategies

Customer-driven marketing strategies

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Targeting and positioning strategy: Microsoft Corporation case study

Microsoft as a corporation has a wide range of products of which demand varies depending

on the use of which the customer requires the product. When it comes to Windows operating

system and the Microsoft office, the organization strategy targets all sections of the world with

access to personal computers. On the other side, mobile products and developers tools are a

differentiated target strategy where the market is divided in terms of the features appealing to the

customers of the specified region. In the recent past, the company has embarked on enriching the

lives of the customers across the various locations. The fact that Microsoft Windows and office

has satisfied the customers, Microsoft has built a brand loyalty in the customers such that any

product they launch in areas with high level of loyalty tends to succeed. The brand aspect has

position Microsoft and its products in a good position in the customer’s list of preference across

the globe hence enhancing their sales. This customer positioning strategy has helped the

organization gain a competitive advantage over most of the other competing organization (West

et al., 2015).

Servitization strategy: IBM case study

The desire to achieve desired profits has become a big challenge to most of the companies

including the established firms like IBM. The study reveals the evolution of IDM from the

traditional cost-oriented mode of competition to modern product-services oriented competition.

Servitization simply implies adding services to the products with the main aim of making the

organization more appealing to the customers. From the research conducted on the IBM firm, it is

clear that evolving from the traditional method to servitization requires a change in the organizing

principles, structures and also process. However, the strategy is best in meeting the customer’s

satisfaction and expectations. In the addition of the layers of services to the products, IBM
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Corporation ensures that effective market research is conducted to ensure that the layers of services

added are those required by the customers. The key feature of this strategy is its customer’s

centricity (Ahamed et al., 2013). The customer is provided with broad and highly tailored solutions

in form of a package that includes goods and services. This is a strategy that has worked pretty

well for IBM Corporation. Adding a layer of services that are not necessary for the customer can,

however, discourage the customers.

Market segmentation and strong brand creation: PEPSI case study

Creating a strong product brand in the market is another customer-driven strategy.

Companies’ use this strategy as a long-term strategy to maintain market share. Pepsi has segmented

its market and targeted the youth ever since creating a very strong brand in that population. The

logos, taglines, advertisements, and means of communication that has mostly been used by Pepsi

indicates that their main target market population in the market is the youth (PEPSI-Branding,

2015). According to the study, the company has ensured that through its strong brand for this

population, there have gained their customer’s loyalty such that in almost all the situations, the

population will choose Pepsi products over others such as Coca-Cola more so in areas such as the

United States. The organization even uses its logo as a connecting between it and its customers.

Brand as a strategy is relatively stable.

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References

Ahamed, Z., Inohara, T., & Kamoshida, A. (2013). The servitization of manufacturing: An
An empirical case study of IBM Corporation. International Journal of Business
Administration, 4(2), 18.

West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive
Advantage. Oxford University Press, USA.

PEPSI-Branding. (2015). Branding Strategy of Pepsi. Retrieved December 06, 2017, from
Http://ideasmakemarket.com/2012/03/ideasclash2-0-entry12-branding-strategy-of-
pepsi.html