Market segmentation is the process of dividing a market into distinct segments of customers

Market segmentation is the process of dividing a market into distinct segments of customers

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Market segmentation is the process of dividing a market into distinct segments of customers (who share certain characteristics) and selecting one or more segments to serve within a given product and marketing offer o How do you segment a market? o How do you divide a broad market composed of heterogenous individuals and divide it into groups of homogenous people who will respond in a similar way to your offer? Gathering information for segmentation There are five types of information that you may collect about your potential customers. o Geo-demographic: usually for a specific geographic areas; includes information such as sex, marital status, income, education, household size, and structure, and occupation o Psychographic: lifestyle data, list of consumers’ activities, interests, and opinions, where do your prime prospect vacation? What are their hobbies? Etc. o Purchase behavior: usage rate, frequency of purchase, brand loyalty, how often do your customers go grocery shopping?
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Unformatted text preview: o Benefits: what benefits are your customers seekingexs for toothpaste: fresh breath, whiter teeth, tartar reduction, etc o Media preferences: where do they prefer to get their news Choosing your segment Once you have all this info collected, you need to look for patterns among customers Mass marketing is when you dont distinct between consumers Mass customization: when you focus on individual companies or customers Your Prime Prospects The more precisely firm can define its target market, the more it can begin to think and feel like its target sutomers, the greater its chance of attractin ghtme and holding on to them Positioning Teaching your customers to think of your product or service as a solution to a need (defined broadly) in a way that is different from your competitor, some say it is about owning mindspace and creating a desirable image about your product or service...
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Market segmentation is the process of dividing a market into distinct segments of customers

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