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 organization 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 organization 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 organization actually offers from the service or the experience) to identify which are he 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 deference to promote can be Important, distinctive, Superior, communicable, pre-emotive, 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 ND 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.