Designing Customer Driven Marketing Strategy
1412 WordsNov 30th, 20126 Pages
Designing Customer Driven Marketing Strategy:
Now-a-days companies recognize that they can not appeal to all buyers in the marketplace or at least not to all buyers in the same way. Buyers are too numerous, too scattered, and too varied in their needs and buying practices. Moreover, the companies themselves vary widely in their abilities to serve different segments of the market.
There are 4 steps of designing customer driven marketing strategy. They are described below:
(i) Market Segmentation:
Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large heterogeneous markets into smaller segments that can be reached more efficiently and…show more content…
5. Actionable: Effective programs can be designed for attracting and serving the segments. ECONO DX fulfills all these five criterions.
(ii) Market Targeting:
Market segmentation reveals the firm’s market segment opportunities. The firm now has to evaluate the various segments and decide how many and which segments it can serve best. In evaluating different market segments, a firm must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources.
Firstly, the company must collect and analyze data on current segment sales, growth rates and expected profitability for various segments. But “right size and growth” is a relative matter. The largest, fastest-growing segments are not always the most attractive ones for every company. Smaller companies may lack the skills and resources needed to serve the larger segments.
Secondly, the company also needs to examine major structural factors that affect long-run segment attractiveness. For example, a segment is less attractive if it already contains many strong and aggressive competitors. The existence of many actual or potential substitute products may limit prices and the profits that can be earned in a segment. The relative power of buyers also affects segment attractiveness. Buyers with strong bargaining power relative to sellers will try to force prices down, demand more services, and set competitors against one another- all at the
Customer-Driven Marketing Strategy of Titan (Watch Division)
The company we have chosen to analyze in our assignment is the world's fifth largest wrist watch manufacturer and India's leading producer of watches, Titan. This assignment tells us briefly what Titan actually is, its customer driven marketing strategy, how they create value for target customer view on the size and sales of the company and also the various market segmentation strategies, target market strategies and differentiation and positioning their products to desired market with customer satisfaction.
Titan entered the Indian market of wrist watches in 1984, at a time when HMT watches were enjoying a monopoly-situation. The venture took birth from the TATA group and today is India's market leader in wrist watches. The constant innovation and effective market segmentation has been the great boon of the company. Today the company has a model for every price segment and every market.
Initially when the mechanical technology was the norm, Titan went against the tide and built-up its line with Quartz.
The four major steps in designing a customer-driven marketing strategy are-
Market segmentation involves dividing a market into smaller groups of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes.
Market targeting consists of evaluating each market segment's attractiveness and selecting one or more market segments to enter.
Differentiation involves actually differentiating the firm's market offering to create superior customer value.
Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Market segmentation of Titan
Market segmentation is concerned with identifying differences in the buyer behaviour, allowing a firm to match its capabilities with distinctive products and related marketing programs. Market segmentation tends to focus on the marketing...