CAPISTRANO, ANNE MARIE M.

BSTM 1-3N

1. Define the major steps in designing a customer-driven marketing strategy: market segmentation,
targeting, differentiation, and positioning.

- In creating a customer-driven marketing strategy, there are four important steps:

1. Segmentation: Segmentation describes the market separated into multiple customer

segments with the same characteristics, attributes or behaviors that may need different
marketing strategies. Companies divide the large market into smaller markets by segmentation,
meaning that they can meet their target customers more easily and effectively.

2. Targeting: Then, after segmentation, marketers assess the popularity of each segment and
pick one or more segments to join. Targeting defines a set of buyers that the businesses decide
to represent who have similar needs & functionality.

3. Differentiation: Companies separate their business offers from competitors and create
superior value for consumers. Add innovative design, better performance, easy payment
mechanism, nice after-sales facilities, all of which can separate one business from another
business.

4. Positioning: Positioning describes itself as designing the offer of the market to hold a simple,
distinctive & favorable position in the minds of target consumers compared to competing
brands.

2. List and discuss the major bases for segmentation consumer and business markets.

- These are the major bases for segmentation consumer and business markets

1. Geographic segmentation: Geographic segmentation is a function that enhances the

marketing strategy efficiently in order to promote goods or services based on where their
buyers live. In order to define the consumer and sell a product/service effectively, separation is
done in terms of countries, nations, districts, towns, colleges or regions.

2. Demographic segmentation: Demographic segmentation is characterized based on variables

such as age, gender, income, etc. as a form of market segmentation. This segmentation allows
companies to accurately understand consumer behavior, which, in turn, enables them to remain
competitive.

3. Psychographic segmentation: Psychographic segmentation is defined as a strategy of market

segmentation where groups are developed according to psychological characteristics that affect
consumption habits obtained from the lifestyle and preferences of consumers. Any company
that intends to consider the thinking process of their clients will divide their target market
according to this form of segmentation.
 4. Behavioral segmentation: Behavioral segmentation is characterized to be focused on
customer awareness, behaviors, uses or reactions to a product to separate the market into
various segments. The best starting point for marketers to capture consumers is both of these
factors.

3. Explain how companies identify attractive market segments and choose a market-targeting
strategy.

- Some factors find some segments more attractive than others. A larger business segment, for instance,
is more appealing than a small one, mainly because a larger market segment presents a company with
more potential consumers and more possible sales. When the product in question is new to the
consumers and has lots of space to grow, a segment becomes attractive. This makes it possible for the
company to plan a marketing strategy that would cater to all of them and thus make them want to
purchase a product.

4. Discuss how companies differentiate and position their products for maximum competitive
advantage.

- Differentiation provides a reason for consumers to choose one product over another. A company has
to consider the essence and position of the available sources of competitive advantage in order to
create a differentiated advantage.

- Positioning effectively increases the segmentation of the industry by identifying the market target that
management intends the business to reach. It sets the segments on which the company intends to focus
its marketing efforts; these are the segments on which the company is most likely to have a competitive
advantage.