Designing a Customer Driven Statergy - 23698 Words

chapter Part 3: Designing a Customer-Driven Marketing Strategy and Integrated Marketing Mix 7 Customer-Driven Marketing Strategy Creating Value for Target Customers Previewing the Concepts So far, you’ve learned what marketing is and about the importance of understanding consumers and the marketplace environment. With that as background, you’re now ready to delve deeper into marketing strategy and tactics. This chapter looks further into key customer-driven marketing strategy decisions—how to divide up markets into meaningful customer groups (segmentation), choose which customer groups to serve (targeting), create market offerings that best serve target customers (differentiation), and position the offerings in the minds of†¦show more content†¦Open-air pastry cases brim with yogurt parfaits and fresh fruit, and a carefully orchestrated pop-music soundtrack is piped throughout. Yet Dunkin’ built itself on serving simple fare to working-class customers. Inching upscale without alienating that base will prove tricky. There will be no couches in the new stores. And Dunkin’ renamed a new hot sandwich a â€Å"stuffed melt† after customers complained that calling it a â€Å"panini† was too fancy. â€Å"We’re walking that [fine] line,† says Regina Lewis, the chain’s vice president of consumer insights. â€Å"The thing about the Dunkin’ tribe is, they see through the hype.† Dunkin’s research showed that although loyal Dunkin’ customers want nicer stores, they were bewildered and turned off by the atmosphere at Starbucks. They groused that crowds of laptop users made it difficult to find a seat. They didn’t like Starbucks’ â€Å"tall,† â€Å"grande,† and â€Å"venti† lingo for small, medium, and large coffees. And they couldn’t understand why anyone would pay as much as $4 for a cup of coffee. â€Å"It was almost as though they were a group of Martians talking about a group of Earthlings,† says an executive from Dunkin’s ad agency. One customer told researchers that lingering in a Starbucks felt like â€Å"celebrating Christmas with people you don’t know.† The Starbucks customers that Dunkin’ paid to switch were equally