1.

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

 Market segmentation - Market segmentation is a marketing term that refers to aggregating

prospective buyers into groups or segments with common needs and who respond similarly to a
marketing action. It enables companies to target different categories of consumers who
perceive the full value of certain products and services differently from one another.

 Targeting - Market targeting is a process of selecting the target market from the entire market.
A target market refers to a group of potential customers to whom a company wants to sell its
products and services. This group also includes specific customers to whom a company directs
its marketing efforts.

 Differentiation - Differentiation is a marketing strategy designed to distinguish a company's

products or services from the competition. It also involves identifying and communicating the
unique qualities of a product or company while highlighting the distinct differences between
that product or company and its competitors.

 Positioning - Positioning is a marketing term that defines where your business, product or
service stands in relation to competition in the marketplace in the mind of the customer.

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

 Geographic segmentation is a marketing strategy to target products to people who live or shop
in a specific location. This approach is particularly useful if you sell products that are subject to
differences in regional culture, climate or population.

 Demographic segmentation refers to the categorization of the target market based on specific
variables like age, education, and gender. It is a type of market segmentation that helps
businesses to understand their consumers better and meet their needs, effectively. It allows
businesses to be more strategic and specific with marketing.

 Psychographic segmentation is how marketers learn to position their products so that

compatible customers can “discover” them. It’s how brands find the right customer match based
on customer attitudes and lifestyles.

 Behavioral segmentation refers to a process in marketing that divides customers into segments
depending on their behavior patterns when interacting with a particular business or website.

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

The company assesses each category based on a number of parameters. The company's growth
rate in each segment is investigated, as well as the competition it faces in each segment. In addition, the
organization calculates attainable market shares and measures brand loyalty in each segment. Then, it
determines the required market shares at break-even point and matches the profit margins of each
segment. the attractive marketing segment for the company is the one which is the most profitable and
it is possible that the company considers all segments profitable, or even a small niche, at times. An
attractive segment should be large enough to fulfill the objectives of the company and competition in
the market. Now, when once the attractive segment is selected then the next step is to design a
strategy for the target market. The target marketing strategy is based on the mix of the product, price,
place and promotion. On the basis of the needs and demands, affordability of the targeted segment,
their geographical access and their exposure to different medias, the company selects the marketing
strategy for the target segments. These factors are determining according to the needs of the target
market.

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

Companies pursue relevant differentiation and positioning, as each company and its product
represent a distinctive idea in the mind of the target market. Companies carefully consider both the
strengths and the weaknesses of competitors when developing marketing strategy. Identifying a set of
possible differentiations that create competitive advantage, choosing the right competitive advantages
and selecting an overall positioning strategy. Product positioning, in essence, extends market
segmentation by identifying the market target that management continues to pursue. It identifies the
market segments where the company wants to concentrate its marketing efforts; these are the markets
where the company is most likely to gain a competitive advantage. Companies can obtain a competitive
advantage by differentiating their product offerings to provide higher customer value or managing for
the lowest delivered cost.