Customer Value Driven Marketing Strategy

Developing an Integrated Marketing Mix

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Customer Value

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Select Customers to Serve
• Market Segmentation: Process of dividing Market into distinct groups of buyers, who have different
needs, characteristics, or behaviours.

• Market Targeting: After a company has defined its market segments, it can enter one or many of these
segments. Targeting involves evaluating attractiveness of different segments and selecting one or more
segments to enter.
• Decision to target market depends on where company can profitably create customer value and sustain in
market.
• Barriers in entering multiple segments: Limited Resources.

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Decide on a Value Proposition
• Market Differentiation: Differentiating the company’s market offerings to create superior customer
value.

• Market Positioning: Positioning is arranging for a product to occupy a clear, distinctive and desirable
place relative to competing products in minds of target consumers.
• Position is the place it occupies in the minds of target consumers.
• Eg, Indigo offers greater value by charging lower prices.

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Marketing Mix
• The set of tactical marketing tools – Product, Price, Place and Promotion – that the firm blends to
produce the response it wants in its target market.

Target Customers
• Product
• Price

Intended Positioning
• Promotion
• Place
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Customer Centered Framework
Four P’s Four A’s

Product Acceptability

Price Affordability

Place Accessibility

Promotion Awareness

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Product
• Means the goods and services combination the company offers to the target market.

• How Product Target Consumers

• Variety
• Quality
• Design
• Features
• Brand Name
• Packaging
• Services

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Price
• Price: It is the amount of money customer must pay to obtain the product.

• How price is intended towards targeting consumers

• List price
• Discounts
• Allowances
• Payment period
• Credit terms

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Promotion
• Promotion: Activities that communicate the merits of the product and persuade target consumers to buy
it.

• Promotional strategies intending positioning of product.

• Advertising
• Personal Selling
• Sales Promotion
• Public Relations
• Direct and Digital.

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Place
• Place: includes activities that make the product available to target consumers.

• How Companies use Place as Intended Positioning Strategy.

• Channels
• Locations
• Coverage
• Inventory
• Transportation
• Logistics

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