Customer Driven Marketing Strategy (Microsoft)

953 Words4 Pages
Customer Driven Marketing Strategy A marketing strategy is ‘the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships’ (Armstrong et al. 2012, p. 10). There are two main questions that must be considered when attempting to create a customer driven marketing strategy. These two questions are ‘What customers will we serve? (Who is our target market?) and How can we serve these customers best? (What is our value proposition?)’ (Armstrong et al. 2012, p. 10) It is important to decide what customers the company will serve as it can not serve all customers in the market and thus must select which customers they can serve most profitably. There is currently more emphasis on retaining old customers over attracting new customers as it is more profitable. The company must then choose a value proposition, by which it will differentiate itself from its competitors, in order to attract customers to buy their products. Finally the company must decide on which marketing management orientation it shall conduct their marketing activities. There are five concepts; the production concept, which is the idea upon which the customers will favour products that available and affordable; the product concept which states that customers will favour products that offer quality performance and features; the selling concept which refers to the company undertaking a large scale selling and promotion effort; the marketing concept which is the philosophy that achieving the organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors do and the social marketing concept which is the idea that a company's marketing decisions should consider consumer wants the company's requirements, the consumers’ long run interests and society’s long run interests. The
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