Ch. 8 Summary.docx - Ch 8 – Customer-Driven Marketing Strategy Creating Value for Target Customers Companies nowadays acknowledge the fact that they

Ch. 8 Summary.docx - Ch 8 – Customer-Driven Marketing...

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Ch. 8 – Customer-Driven Marketing Strategy: Creating Value for Target Customers Companies nowadays acknowledge the fact that they cannot appeal to all customers in the marketplace, or at least not all customers in the same way. There are numerous amounts of customers and many different variables that appeal to their needs and buying processes. As for the companies themselves, they also vary in the many different abilities that they may serve to different market segments. However, it is very important that companies identify the parts of the market it can successfully serve, especially in terms of making the most profit. To do so, companies must design customer-driven marketing strategies that build the right relationships with the right customers. With focusing on the company’s specific target market, the company can develop customer-marketing strategies through steps in segmentation, targeting, and positioning. Market segmentation is the process of dividing a market into direct groups of buyers who might require separate products or marketing mixes. The steps in market segmentation involves identifying the bases for segmenting the market and to develop profiles of resulting segments. With market segmentation, marketers must take into consideration the many different types of segmentation variables. The major variables of segmentation are geographic, demographic, psychographic, and behavioral. Geographic segmentation is the process of dividing a market into different geographical units such as nations, states, regions, counties, cities, or neighborhoods. Other examples of geographic segmentation includes population density (urban, suburban, and rural) and climate. Demographic segmentation is the process of dividing the market into groups based on demographic variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, and nationality. Psychographic segmentation is the process of dividing a market into different groups based on social class, lifestyle, or personality characteristics. Behavioral segmentation is the process of dividing a market into groups based on consumers’ knowledge, attitude, use, or response to a product. It is believed that this kind of
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