3 Steps of Marketing Strategy

There are three steps of marketing strategy:

1) market segmentation - to divide a heterogeneous market into segments of more homogenous customers according to geographic regions, demographic differences (age, education, gender & race), income levels, psychographic (such as social class, lifestyle, or personality characteristics), behavioral (attitude, why purchase, when to buy, when to use), and benefits (what customers perceive to receive).

2) target marketing - to select which segments of customers to serve according to the segment size, growth potential (demographic detail), and degree of competition & product differentiation in relation to the organization objectives and resources. hence we can have undifferentiated marketing, differentiated marketing, concentrated (niche) marketing, and micro-marketing (local and individual marketing).

3) marketing positioning is arranging for a product to occupy a clear distinctive, and desireable place relative to completing products in the minds of target customers. hence the key is to indentify the organization's comparative advantage and competitive advantage against its competitors.