Chapter 2: Company & Marketing Strategy: Partnering to Build Customer Relationships
CHAPTER 2: “Customer-Driven Marketing Strategy”
After reading Chapter 2, the section I found most interesting was “Customer-Driven Marketing Strategy”. The section basically went over why and how a company needs to be customer centered in today’s competitive market. With market segmentation, targeting, differentiation, and positioning, the company divides the whole market into smaller segments, selects segments it can best serve, and decide how it wants to bring value to target consumers. The market consists of many different customers, needs, etc. and it’s the marketer’s job to determine which segments offer the best opportunities. Consumers are grouped based on geographic, demographic, psychographic, and behavioral factors. Dividing the market into these categories of buyers is called market segmentation. A market segment consists of consumers who respond in a similar way to a given set of marketing efforts. After market segments, a company can enter one of many of these segments. The act of market targeting is when companies evaluate each market segment and select which one to focus on. After a company has decided which market segment to enter, they need to plan out how their company will stand out against the other companies. Positioning is arranging for a product to occupy a desirable place relative to competing products in the minds of target consumers. Why will a shopper pay more for your brand? A marketer will plan positions that differentiate their product from competing brands. Which I think is really important in marketing. To me, that’s what marketing is all about. You have to make sure your product stands out against everyone else or no one will have a reason to buy your product. What makes yours so much better than everyone else’s?