Market Segmentation by Jerry W. Market segmentation is a much broader concept, however, and it pervades the practice of business throughout the world. What is market segmentation? That is, the members of a market segment share something in common.
Region, climate, population density, and population growth rate Geographic Location, customer concentration, regional industrial growth rate, and international macroeconomic factors Demographic Age, gender, ethnicity, nationality, education, occupation, religion, income, and family status Customer type Size of the organization, its industry and position in the value chain Psychographic Values, attitudes, opinions, interests, activities, and lifestyles Buyer behavior Loyalty to suppliers, usage patterns, and order size Behavioral Usage rate and patterns, price sensitivity, brand loyalty, and pursuit of benefits The identified segments are profiled and the attractiveness of each one must be evaluated before choosing a target market.
Identify the five basic segmentation strategies. Give an example of a company that has used each one. timberdesignmag.com market segmentation identifies and groups customers . 5 Customer Segmentation Strategies for Dominating Your Market. by Scott Maxwell December 11, Below are five basic strategies for you to consider that will help you think about which potential customers you should be focusing on. Your mission is to figure out which ones are best for you and how to execute them. OpenView® and. Identify the five basic segmentation strategies. Give an example of a company that has used each one. Click here for hint. 3. Identify the different positioning strategies presented in the chapter and give examples of companies or products that illustrate each.
However, a question that stands after selecting the criteria to break down the market is: There are rigorous analytic techniques used to organize consumers into groups with related needs, wants, and attitudes.
With these, the size and potential market of each segment can be determined, along with the positioning and the appeal that will be used to cover it. For example, a K-Means Cluster Analysis attempts to identify relatively similar groups of interviewees based on selected characteristics using an algorithm capable of handling large amounts of people.
Essentially, this method tries to separate n observations into k clusters, and each observation belongs to the cluster with the closest mean.
A very well-known industry in which this sort of analysis is frequently used is the mobile telecommunications industry, where competition is becoming stronger around the globe.
In this case, the aim of clustering is to categorize prospective customers into unique groups for distinctive contact strategies and new offerings, by managing billing system data and information.
This data, along with call records, describe customer utilization and spending behavior, allowing operators to approach customers in a more effective way. China Mobile Limited, the largest mobile carrier in the world with over million subscribers, is well known for using this analytic technique.
Apart from playing a major role in developing new marketing efforts to attract new customers, market segmentation can also help a business to discover ways to reinforce existing customer loyalty. For instance, a firm may request some kind of feedback through questions specifically addressed to a certain group with the purpose of obtaining practical suggestions on how to make a product better.
The customer will then know that the company is truly aware and the bonds between them will grow stronger. If you have any questions or comments about this post contact us.At its most basic level, the term “market segmentation” refers to subdividing a market along some commonality, similarity, or kinship.
That is, the members of a . Tag: Identify the five basic segmentation strategies Read Case on page of your book. Summarize the case and answer the discussion.
Segmentation strategies: There are many ways in which a market can be segmented.
A marketer will need to decide which strategy is best for a given product or service. Segmentation strategies: There are many ways in which a market can be segmented. A marketer will need to decide which strategy is best for a given product or service. Below are five basic strategies for you to consider that will help you think about which potential customers you should be focusing on.
Your mission is to figure out . Definition of segmentation strategies: Approaches to subdivision of a market or population into segments with defined similar characteristics.
Five major segmentation strategies are (1) behavior segmentation, (2) benefit segmentation, (3).