Example Of Principles Of Marketing Essay

1.
Customer-driven marketing strategy refers to the strategy that is customer oriented, and designed to deliver customer satisfaction. A customer driven marketing strategy involves various steps, however, four major of the strategy are:
Market Segmentation: this refers to the identification of target markets that have different requirements. In market segmentation, company splits large market in small target groups of potential consumers who have distinct characteristic, requirements, and behaviors. These attributes associated with the target markets impact company’s marketing strategy for different target group of consumers.
Target Market: Company evaluates different requirements of different groups of consumers, and shortlist segments that can be served efficiently by the company and its products. Company select target market after analyzing it on various parameters such as product specific requirements, purchasing power, and socio-demographic profile of the consumers. Marketing strategy of the company is get designed after considering all socio-demographic and economic factors.
Differentiation: Companies in order to create unique positioning for its products adopt differentiation strategy. Differentiation helps customers in understanding why products offered by the one company are superior that competitors’ products, and how company is delivering customer value.
Positioning: Company positions its brand or product by occupying a distinctive, unique and suitable place in the mind of consumers as compare to rival products.
2.
Four major sets of variables used by the companies in segmenting potential consumers are geographic, demographic, psychographic, and behavior. Geographic segmentation is very old method of market segmentation. In this method, companies’ segment consumers according to geographical factors i.e. weather of the location, topography, and density of the population. For example, a company cannot sell winter clothes in a country that have high temperature through the year. Demographic segmentation method emphasizes on segmentation of the market depending upon the characteristics of the market such as age, gender, social class, education, marital status, and income & occupation. These factors help a company in analyzing sales volume and expected growth.
Psychographic segmentation emphasizes on division of the market based on motivation, lifestyle, social class, and personality of the consumers. Behavior segmentation focuses on the division of the market based on behavior, consumer knowledge, attitudinal values, and response of the consumers towards different products. Out of all four methods a company can use one, or combination of methods to select its target market. Starbucks is using demographic segmentation approach. The company initially designed its marketing strategy to target young and middle age, well-educated, high income and corporate customers. However, now Starbucks is targeting people from all age groups and also from lower-middle class.
3.
Product positioning refers to the way consumer describe or define important attributes of a product. Position in other terms can be described as a place that products occupy in the minds of the consumers. Positioning is a reflection of the image that product carries. Marketers used positioning to differentiate its products from other competitors’ products. Effective positioning informs customers about the benefits associated with the products, how product offers maximum value to them. For example, McDonald’s burgers are well known for its good quality and affordability. Company positioned its product as a quality economic meal. Positioning also helps in developing strong brand image. Marketers place their product by creating a unique space among the mind of target market segment.