A Note on Market Definition, Segmentation, and Targeting: Three (of Four) Steps in Developing Marketing Strategy

Abstract

Marketing strategy, part of the marketing planning process, flows directly from a company's goals and helps define how the marketing organization will help the firm achieve its objectives. Marketing strategy is guided by the goals and objectives of the organization, the business unit, or the particular product or service for which the plan is developed. The choice of which marketing strategy (or strategies) to pursue then guides the marketing mix decisions, which, taken together, become the value proposition offered to the target market segment(s). Marketing strategy involves four steps, and this note addresses the first three. Excerpt UVA-M-0895 Rev. Oct. 23, 2017 A Note on Market Definition, Segmentation, and Targeting: Three (of Four) Steps in Developing Marketing Strategy Marketing Strategy Marketing strategy, part of the marketing planning process, flows directly from a company's goals and helps define how the marketing organization will help the firm achieve its objectives. As a result, marketing strategy is guided by the goals and objectives of the organization, the business unit, or the particular product or service for which the plan is developed. The choice of which marketing strategy (or strategies) to pursue then guides the marketing mix decisions (i.e., the product, distribution, promotion, and price decisions), which, taken together, become the value proposition offered to the target market segment(s). Understanding how the plan impacts the firm financially is the last step in the marketing planning process. . . .