Marketing Strategy Handbook
According to Kotler and Armstrong (2014) marketing strategy is the company’s answer to two key questions:
1. Which customers will the business serve (segmentation and targeting)? and
2. How will it create value for them (differentiation and positioning)?
Its formulation involves the following steps:
- Identification of the total market
Segmentation implies dividing the overall market into distinct groups of buyers who have different needs and preferences and might need different products to fulfill them. Each group shows relatively homogeneous needs and preferences and can be approached with a particular product or marketing effort.