Marekting

In: Business and Management

Submitted By drake6
Words 1010
Pages 5
Marketing principles
Week 5: ch 6 Customer-driven marketing strategy:Creating value for target customers

Consumer behaviour and consumer markets
- Most companies have moved away from mass marketing and towards target marketing – identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.
- Companies must design customer-driven marketing strategies that build the right relationships with the right customers.

Customer-driven marketing strategy

Definition of market segmentation
- The process of analysing a market with the aim of directing marketing focus towards smaller segments of buyers with distinct characteristics or behaviours that might require separate marketing strategies or mixes.
Segmenting a market consists of ...
- dividing the market into distinct groups of buyers (segments)
- that are as similar as possible within each segment but clearly distinct from other segments
- in order to adapt the company’s marketing-mix to each market segment.

Why segment?
Buyers in any market differ in their wants, resources, locations, buying attitudes and buying practices. Segmentation allows companies to divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively.

Segmentation: Bases and variables for segmenting markets

Geographic segmentation- Divides buyers into different geographical units such as nations, regions, states, LGAs, cities or even neighbourhoods. The company pays attention to geographic differences in need and wants

Major variables:
- Region
- City size
- Population density
- Climate zone

Demographic segmentation- Divides buyers into segment based on demographic variables (e.g. age, gender, income, occupation etc). Widely used base because customer needs and wants often vary according to…...

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