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 effectively with products and services that match their unique needs. Market segmentation is of two types: A) Segmenting consumer market: There is no single way to segment a market. A marketer has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. There are four segments of consumer market: . Geographic Segmentation: It calls for dividing the market into different geographical units such as nations, regions, states, provinces, cities or even neighborhoods. ECONO DX mainly does their business in villages. They are also supplying their pens in big cities of Bangladesh but, in few amounts. 2. Demographic Segmentation: It divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation and nationality. Demographic factors are the most popular bases for segmenting customer groups.
One reason is that consumer needs, wants and usage rates often vary closely with demographic variables. Another is that, demographic variables are easier to measure than most other types of variables. As example, old people will buy ECONO DX because; memorable events are related to it. Another example is lower income people uses ECONO DX pen as it is cheap. 3. Psychographic Segmentation: It divides buyers into different groups based on social class, life style or personality characteristics. People in the same demographic group can have very different psychographic makeups.
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Mainly middle and lower class people are the target customers of ECONO DX. 4. Behavioral Segmentation: It divides buyers into groups based on their knowledge, attitudes, usage or response to a product. This grouping is done depending on occasion, benefit sought, user status, user rate, loyalty status etc. As example, patriotic people will want to buy ECONO DX Ball pen because, it is an old brand and they are using this brand may be from the time of liberation war. B) Segmenting Business Market: Consumer and business markets use many of the same variables to segment their markets.
Yet, business marketers also use some additional variables, such as customer operating characteristics, purchasing approaches, situational factors, and personal characteristics. By going after segments instead of the whole market, companies can deliver just the right value proposition to each segment served and captured more value in return. When ECONO DX was first introduced in the market, the owner of the company was very cleaver to grab the market for his product. He made a contract with BD government that- in all government official sectors ECONO DX will be the only ball pen to be used as official accessory.
Requirements for effective segmentation: Clearly there are many ways to segment a market, but not all segments are effective. To be useful, market segments must be- 1. Measurable: The size, purchasing power and profiles of the segments can be measured. 2. Accessible: The market segments can be effectively reached and served. 3. Substantial: The market segments are large or profitable enough to serve. 4. Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. 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 expense of seller profitability. Finally, a segment may be less attractive if it contains powerful suppliers who can control prices or reduce the quality or quantity of ordered goods and services. Even if a segment has the right size and growth and is structurally attractive, the company must consider its own objective and resources.
Some attractive segments can be dismissed quickly because; they do not mesh with the company’s long-run objectives. Selecting Target Market Segments: After evaluating different segments the company must decide which and how many segments it will target. A target market consists of a set of buyers ho share common needs or characteristics that the company decides to serve. Market targeting can be carried out at several different levels- Undifferentiated marketing strategy, Differentiated marketing strategy & Concentrated or Niche marketing.
ECONO DX is following undifferentiated marketing strategy. Undifferentiated marketing: Using an undifferentiated marketing or mass marketing strategy, a firm might decide to ignore market segment differences and target the whole market with one offer. This mass marketing strategy focuses on what is common in the needs of consumers rather than on what is different. The company designs a product and a marketing program that will appeal to the largest number of buyers. (iii)Differentiation and Positioning:
A product’s position is the way the product is defined by consumers on important attributes- the place the product occupies in consumers’ minds relative to competing products. Products are created in the factory, but brands are created in the mind. Consumers are over-loaded with information about products and services. They cannot reevaluate products every time they make a buying decision. To simplify the buying process, consumers organize products, services, and companies into categories and “position” them in their minds.
A product’s position is the complex set of perceptions, impressions and feelings that consumers have for the product compared with competing products. They must plan positions that will give their products the greatest advantage in selected target markets, and they must design marketing mixes to create these planned positions. Choosing a Differentiation & Positioning Strategy: Some firms find it easy to choose a differentiation and positioning strategy. The differentiation and positioning strategy of ECONO DX is, “ECONO DX in different generation”. Competitive Advantage:
To build profitable relationships with target customers, marketers must understand customers needs better than competitors do and deliver more customer value. To the extent that company can differentiate and position itself as providing superior customer value, it gains competitive advantage. The competitive advantage of ECONO DX is it’s lower price. Selecting an Overall Positioning Strategy: The full positioning of a brand is called the brand’s value proposition- the full mix of benefits upon which the brand is differentiated and positioned. It gives the answer to the customers that why they will buy this brand.
Overall positioning strategy can be of five types. Among them ECONO DX follows “More for the Same Strategy”. This strategy says about, companies can attack a compititor’s more-for-more positioning by introducing a brand offering comparable quality but at lower price. From past till present, time has changed a lot. Sometimes it was hard to pass the time, and sometimes time became a matter of joy. So, as shown in our video advertisement- by the side of type-writer or keyboard using, ECONO DX ball point pen became something that supports all the time.
on Designing Customer Driven Marketing Strategy
That’s where the 4 categories of content marketing metrics come in:Consumption metrics: This is one of the best and easiest places to start. Sharing metrics: How resonant is this piece of content, and how often is it shared with others?Lead generation metrics: The ultimate goal for most organizations; How many leads came from a piece of content?Sales metrics: Did we make any money on this piece of content?
Where to Start with Your Marketing StrategyWho is your target customer? You can go beyond asking who your target audience is in the world of the internet and social media. Who are your competitors? Now that you know who the person is that’s going to buy your product, you need to find out who it is that provides How will you get your customers to know about your product?
10 Marketing Strategies to Fuel Your Business GrowthUse social media. You can't ignore social media. That's where all the so-called magic is happening. Some businesses have been built solely on the backs of social media.Create video tutorials. One of the most effective ways to get the word out on your business is to create video tutorials. Teach people something useful.Start blogging now. Sure, you could start a blog. If you don't have a blog for your business, then you need to start one immediately.
Learn the foundations of marketingAppreciate modern consumer psychologyGrasp the drivers of a good brandAcquire a strategic mindsetLearn frameworks for planning media and optimising budgetsMaster the planning and execution of SEO, digital advertising, and social media marketingCreate winning, marketable content
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