THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF A
CUSTOMER TARGETING (MARKETING) STRATEGY
Corporate Strategy
• Mission of the firm
• Strategic thrusts and planning challenges
Customer Targeting (Marketing)
Requirements
Customer Targeting
(Marketing) Internal Scrutiny
• Strengths and weaknesses
• Distinctive Customer Targeting
(Marketing) competencies for all strategic categories of decisions
Customer Targeting (Marketing)
Environmental Scan
• Industry and competitive analysis
• Customer Targeting (Marketing) intelligence
Formulation of Customer
Targeting (Marketing)
Strategy
Customer Targeting
Budgeting
Strategic funds programming and operational budgets

1. MARKETING INTELLIGENCE
It corresponds to the effort conducted by the firm to decipher competitors' standing and to try to anticipate their future moves. Important issues are product introductions, marketing approaches, changes in segmentation practices, price policies, product liabilities, new distribution channels, and improved services approaches.
2. DEFINING AND ANALYZING MARKETS
These decisions are concerned with generating marketing intelligence for the firm. It starts with an appropriate market segmentation, and a finer definition of product-market segments so as to capture the different preferences and needs of customers. In each of those segments, an analysis of the behavior of consumers and organizational buyers is conducted, as well as of the overall strategic competitive situation.
3. PRODUCT STRATEGY
It refers to decisions on how to position a business unit product offering including specific products, breadth of product lines, mix, and bundling - to serve its target markets, establishing strategic objectives for products - market share, profit contribution, and selecting a branding strategy.
4. NEW PRODUCTS DEVELOPMENT AND INTRODUCTION
Issue included are: idea generation, screening and evaluation of ideas, business analysis, development of a prototype, formulation of a marketing approach, market testing in pilot regions, adjustment of administrative and support systems, and new products introduction.

5. DISTRIBUTION STRATEGY
Decisions involved: selection of a distribution channel - whether direct or via retailers, wholesalers, or agents; design and management of the physical distribution system - including customer service, demand forecasting, inventory control, materials handling, order processing, parts and service support, warehousing and storage, procurement, packaging, returned goods handling, and traffic and transportation; and push vs. pull mode of operation of the distribution and sales systems.
6. PRICE STRATEGY
The central factors that affect price strategy are product competitive positioning, product mix, brand strategy, and product quality and features.
The distribution strategy also influences how the price decision will be affected by the advertising and sales force strategy
7. PROMOTION AND ADVERTISING STRATEGIES
An integrated promotion strategy has four components: advertising - presentation and promotion of ideas, goods, or services by an identified sponsor; personal selling - oral presentation to one or more prospective purchasers; sales promotion - includes trade shows, contests, samples, point-of-purchase displays, and coupons; and publicity - exhibition in mass media not paid for directly by sponsor.
8. SALES STRATEGY
This encompasses all of the key decisions that should support a coherent sales strategy including account management, cross-selling and upselling, territory management lead closure, opportunity management, sales force incentives, sales team composition, and customer engagement process.
9. SERVICE STRATEGY
The extend to which service activities become a highest priority to the firm is a critical element of service strategy. Critical decisions are the scope of the service offering, the degree of technical support provided, the amount of customization of service activities, the management of account inquiries, service dispatch, problem resolution, and service tracking.

10. MARKETING ORGANIZATION AND MANAGERIAL
INFRASTRUCTURE
It includes the development of an organization structure; planning, control and information systems; and rewards and incentives systems in accordance with the culture of the firm and the marketing strategy. It is important to reflect on the proper segmentation in the organizational structure of product marketing - which typically resides in the back-end of the organization, and customer marketing - which typically resides in the front-end.

1. PRODUCT STRATEGY
Sales growth rate
Market share
Relative market share
Breadth of product line , market coverage, degree of differentiation
Rate of successful new product introductions
Product bundling
2. CUSTOMER
Customer involvement in joint product development
Degree of customization of product offering
3. DISTRIBUTION STRATEGY
Efficiency of distribution channels
Customer service levels
Distribution costs per channel
Distribution and sales force productivity
4. PRICE STRATEGY
Pricing of marketing mix
5. PROMOTION AND ADVERTISING STRATEGY

Customer targeting (marketing) intelligence: ability to anticipate customer needs and to detect changes in marketing trends
6. SERVICE STRATEGY
Service growth rate
Breadth of service offering
Degree of customization of service
Service profitability
Service performance per customer

CUSTOMER TARGETING (MARKETING) REQUIREMENTS FROM THRUSTS
Strategic Thrust Customer Targeting (Marketing) Requirements

COMPETITIVE PROFILE.
Indicators
1, Product strategy
• sales growth rate
• market share
• relative market share
• breadth of product line, market coverage, degree of
differentiation
• rate of successful new
product introductions
• product bundling
• Customer share
• Customer retention
• Profitability by customer
• Customer involvement in joint
product development
• Degree of customization of
product offering
3. Distribution strategy
• efficiency of distribution
channels
• customer service levels
• distribution costs per
channel
• distribution and sales force
productivity
Relevant Competitor

COMPETITIVE PROFILE.
STRATEGIC PERFORMANCE MEASUREMENT OF CUSTOMER TARGETING
Indicators
4, Price strategy
• price sensitivity
• pricing of marketing mix
5. Promotion and advertising
strategy
• product segmentation
• brand acceptance
• marketing intelligence:
ability to anticipate cus-
tomer needs and so detect
changes in marketing trends
6. Service Strategy
• Service growth rate
• Breadth of service offering
• Degree of customization of service
• Service profitability
• Service performance per
customer
Very
Relevant Competitor

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
• Market Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
• Economic Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
• Government and Political
Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
• Technological Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
• Legal Factors
Critical
External
Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
• Social Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CUSTOMER TARGETING (MARKETING) ENVIRONMENTAL SCAN -
IDENTIFICATION OF OPPORTUNITIES AND THREATS
Critical
External
Factors
• Environmental Factors
Impact
Positive
(Opportunities)
Negative
(Threats)

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETNG POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES
Decision Category
Marketing
Intelligence
Description of Policy Strengths Weaknesses
Note: In the assessment of strengths and weaknesses try to have relevant competitors in mind and use proper strategic performance measurement.

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Defining and
Analyzing
Markets
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Product
Strategy
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
New Products
Development and
Introduction
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Distribution
Strategy
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Price
Strategy
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Promotion and
Advertising
Strategy
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Sales Strategy
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Service Strategy
Description of Policy Strengths Weaknesses

CHARACTERIZE YOUR PRESENT CUSTOMER TARGETING POLICIES
REGARDING THE MAJOR DECISION MAKING CATEGORIES (Continued)
Decision Category
Marketing
Organization and
Managerial
Infrastructure
Description of Policy Strengths Weaknesses

CUSTOMER TARGETING (MARKETING) STRATEGIC AGENDA
Organizational Units
Performance
Measurements
1 -
2 -
1
Key role in formulation and implementation
Important role of support and concurrence
- Identifies the 'Champion', who takes leadership for the strategic thrust execution CT - Customer Targeting
B - Business Model
OE - Operational effectiveness
I - Innovation

CUSTOMER TARGETING (MARKETING) STRATEGIC AGENDA
Organizational Units
Performance
Measurements
1 -
2 -
1
Key role in formulation and implementation
Important role of support and concurrence
- Identifies the 'Champion', who takes leadership for the strategic thrust execution CT - Customer Targeting
B - Business Model
OE - Operational effectiveness
I – Innovation

ASSIGNMENT OF PRIORITIES TO STRATEGIC THRUSTS
A - Absolute first priority (postponement will hurt competitive position significantly).
B - Highly desirable (postponement will affect competitive position adversely).
C - Desirable (if funds were available, competitive position could be enhanced).
Priorities

DEFINITION OF STRATEGIC THRUSTS
Name
Description
Responsible Manager
Other Key Participants
Other Important Contributors
Key Indicators for Management Control and Targets
First Major Milestone Description
First Major Milestone Date
Resources Required
Statement of Benefits

TESTS TO EVALUATE THE QUALITY OF THE STRATEGIC
AGENDA
1. Comprehensiveness
2. Stretch
3. Monitoring and Control- Ease of Implementation
4. Motivation- Quality of Working Environment
5. Vulnerability