Capstone Assignment 1.docx - Characterizing customers by...

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Characterizing customers by lifestyle and demographic factors can often by detrimental for companies. When companies make marketing decisions based on product and customer characteristics, these companies dismiss the fact that customers do not always conform to the normal tendencies of their specific demographic. Relying on market segments ignores the essential motivation of customers: they want to get things done. In contrast it is important to characterize customers by how they will use a product. This characterization markets segments by identifying the job that the customer wants to get done and how a product can achieve that goal. Besides the shortcomings of the demographic and lifestyle market segmentation, job- defined markets are larger than product category-defined markets (page 40). Job-defined markets help companies innovate past the “positioning paradigm” (page 40). In job-defined markets, companies differentiate based on characteristics that help customers get the job done. In class, we discussed a prospective product in a Breakfast Delivery system. Through a

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