Explain how a company designs a customer-driven marketing strategy?

"Marketing strategy is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships." (Kotler & Armstrong, 2012: p.48).

Designing customer-driven marketing strategies for businesses , includes general four steps: 

 First, the organization's overall strategic planning guides marketing strategy and planning.

This includes

" 1)  Defining the company mission(customer-based) Setting company objectives and goals ) Designing the business portfolio) Planning marketing and other functional strategies guided by company-wide strategic planning."  (Kotler & Armstrong, 2012: p.39)

 E.g. Walmart's mission is not to be the world's largest discount stores; it is "to deliver low prices every day and give ordinary folks the chance to buy the same things as rich people." "Save money, Live better."

 2) Setting company objectives and goals.

 Wherein marketing strategies must be defined in greater detail.  For example, increasing the product's promotion may require more salespeople, advertising, and public relations efforts; if so, both requirements will need to be spelled out.

 3) Designing the business portfolio

 Business portfolio planning involves two steps: (1) analyze its current business portfolio and determine which businesses should receive more, less, or no investment. (2) shape its future portfolio by developing strategies for growth and downsizing."

 Second, guided by the strategic plan, marketers partner closely work with others inside and outside the company to create value for customers. 

Marketing cannot alone create value for customers. "They must work closely with other departments inside the company to form effective internal value chain that serves customers and partner with other companies in the marketing system to form a competitively superior external value delivery network." (Kotler & Armstrong, 2012: p.46).

 Third, guided by the marketing strategy and planing, marketers choose target markets, position their marketing.

 It is summarized in the model for Managing Marketing Strategies and the marketing mix, which summarizes the major activities involved in managing a customer-driven marketing strategy and the marketing mix.

"Customers are in the center. The goal is to create value for customers and build profitable customer relationships."  (Kotler & Armstrong, 2012: p.48) .

Fourth, measuring and managing the return on marketing investment (marketing ROI)

1. To begin with that we need to define 'who' our customer is and what they want.
2. Needs/wants change and consistent (quarterly, annual- depending on the industry) customer feedback is crucial to verify our assumptions.
3. This can be done by surveys, customer feedback in stores, or via focus group sessions.
4. Once we have an adequate sample size it becomes important to understand their path to purchase and position ourselves accordingly.
5. In house teams or agencies can then use this data to craft a more appropriate customer driven marketing strategy.

The following approach may be followed for designing a customer driver marketing strategy. 

1.     Select the customers to be served, then segment the market and target the market(s) to be served

2.     Decide on value proposition through market differentiation (offering to create a better value) and positioning (position the products in the minds of the customers) 

3.     Now, segmentation, targeting, market differentiation, and positioning need to be fused together to create a value for targeted customers.

Full Agree with all expert answers

I agree with answer Md. Fazlur Rahman

Just following Ms.Ghada Eweda's answer which is close to my view in this respect.

In a highly competitive business environment, focusing on the needs of your customers can give you an edge over your competition. As such, your marketing strategy should be geared toward reaching those who would benefit the most from your product or service. A customer-driven marketing strategy includes elements like identifying your target market and reacting to their needs. It should also detail ways to retain customers and use them to help you gain additional business.

A customer-driven marketing strategy targets a specific market segment. Use marketing research to identify common demographic characteristics within your customer base, such as age, gender, occupation and income level. The more you know about your customer base, the easier it is to develop a strategy that will appeal to these characteristics. As a result, you waste less time and money trying to reach unlikely prospects.

A customer-driven marketing strategy focuses on meeting the needs of your customers and examines how your products or services can meet those needs. For example, your initial research may tell you that your customers are extremely interested in receiving a high level of service. You may be able to meet this need by offering free deliveries or extended hours of operation.

Customer-driven marketing helps to build loyalty, which can lead to repeat sales as well as referral business. One method used by marketers is the implementation of a rewards program where customers receive points each time they make a purchase. The accumulation of points leads to free or discounted products or services.

Use feedback from your customers to make changes or improvements to help you continue to meet customer needs in the future. For example, your customers may indicate that they want a cleaner store, a different product mix or a better customer return policy. Make any necessary changes and use your marketing strategy to get the word out to show that you're focused on serving your customers.

Make generating referrals a part of your customer-driven marketing strategy. Encourage your existing customers to spread the word about your business to gain new customers. Implement a referral program where customers are rewarded for sending new business your way by giving them additional discounts or free merchandise. You could even hold a contest to see which customer can send you the most referrals in a specific amount of time.

Agree with - Md. Fazlur Rahman Administration Manager (UN Professional Level-P3)

Thank you for the invitation ... I would agree with the answers that really covered your question ... variety of helpful information and opinions... Nothing to add !

I fully agree with the answers been added by EXPERTS..............Thanks.