BUS131D_Lecture9_Handout.pptx

BUS131D_Lecture9_Handout.pptx - Needs Identification and...

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Dr. Michael Merz College of Business, San Jose State University Click to edit Master subtitle style Needs Identification and Needs-Based Segmentation Dr. Michael Merz College of Business San Jose State University
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Dr. Michael Merz College of Business, San Jose State University 22 Today’s Agenda Needs Based Market Segmentation Customer Needs Segmentation Strategies Customer Relationship Marketing
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Dr. Michael Merz College of Business, San Jose State University What is Market Segmentation? Process of dividing a potential market into distinct subsets of consumers with common needs or characteristics. Separating a heterogeneous market into smaller homogeneous units. Goal: Seek within-group sameness (homogeneity) and between-group difference (heterogeneity). 33 Entire Market “Segment 1" “Segment 2" all dog owners dogs are dogs are servants family members
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Dr. Michael Merz College of Business, San Jose State University 44 Why Market Segmentation?
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Dr. Michael Merz College of Business, San Jose State University Important Elements of Market Each market segment has unique needs and wants and will have a unique demand curve. Each market segment requires its own marketing strategy and marketing plan. 55
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Dr. Michael Merz College of Business, San Jose State University 66 Demographic Trap Given the strong role demographics, lifestyle, and usage play in shaping customer needs, it seems logical to segment a market on the basis of these differences. Why then might it make more sense to start the market-segmentation process with customer needs and then group customers on the basis of similar needs?
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Dr. Michael Merz College of Business, San Jose State University Need For Needs-Based Too many variables and too many meaningless combinations exist. Therefore, the market segmentation process should
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BUS131D_Lecture9_Handout.pptx - Needs Identification and...

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