Lesson plan # 4

Subject: Principles of Marketing. (MKT201)

Faculty Name: Abul Khair Jyote

Title Customer-Driven Marketing Strategy

Sub-titles Creating Value for Target Customers

Aim In a highly competitive business environment, focusing on the needs of your

customers can give you an edge over your competition. As such, your marketing
strategy should be geared toward reaching those who would benefit the most from
your product or service.

Objectives In this chapter, students will learn about the major elements of a customer-driven
marketing strategy: segmentation, targeting, differentiation and positioning.
Marketers know that they cannot appeal to all buyers in their markets or at least not
to all buyers in the same way. Therefore, most company’s today practicetarget
marketing—identifying market segments, selecting one or more of them and
developing products and marketing mixes tailored to each.

Brief  Market Segmentation

contents  Market Targeting
 Differentiation and Positioning

Key words Market Segmentation, Effective Segmentation, Target Marketing, Target Marketing
Strategies, Market Positioning, Types of differentiation, Positioning Map.

New Geodemographic segmentation, Undifferentiated (Mass) Marketing, Concentrated

words (Niche) Marketing.

Probable  Briefly describe the four major steps in designing a customer-driven

Questions marketing strategy.
 Name and describe the four major sets of variables that might be used in
segmenting consumer markets. Which segmenting variables does Starbucks
use?
 Discuss the factors marketers consider when choosing a targeting strategy.

 Explain how micromarketing differs from differentiated andconcentrated

marketing and discuss the two types of micromarketing.

 Explain how a company differentiates its products fromcompetitors’ products

 Name and define the five winning value propositionsdescribed in the chapter.
Which value proposition describesWal-Mart? Neiman Marcus? Explain your
answers.

Reference  See “Less Is More,” Progressive Grocer, January/February 2009,p. 46;

s Jonathan Birchall, “Walmart Looks to Hispanic Market inExpansion Drive,”
Financial Times, March 13, 2009, p. 18; JonathanBirchall, “Walmart Focuses
on Smaller Front,” Financial Times, October19, 2009, p. 18, and
http://walmartstores.com/AboutUs/7606.aspx accessed July 2010.

 For these and other examples, see Philip Kotler and Kevin LaneKeller,
Marketing Management, 13th ed. (Upper Saddle River, NJ:Prentice Hall,
2009), pp. 210–211; and www.zipcar.com/about/accessed October 2010.

 Elaine Wong, “P&G, Dial, Unilever Target the Middle Man,”Brandweek,

May 18, 2009, p. 8; and http://www.niveamenusa.com/accessedOctober
2010.