Customer-driven marketing includes the following four major steps:
1. Market Segmentation- dividing the total market into measurable, discrete groups according to different characteristics, behaviors or needs. This step assesses all the people the business can/could sell its product or service to, according to the following segment examples: geographic, demographic, psychographic, and behavioral.
2. Target Marketing- evaluating the marketing segments and determining which type of marketing strategies will suit each segment the best.
3. Differentiation- determining the correct competitive advantage of the product or service. This looks at the type and number of product attributes you wish to promote. These include five types of differentiation attributes: product, services, channels, people and image.
4. Positioning- a product’s position- this is the way in which the product is defined by customers based on important characteristics.