Unformatted text preview: t shows the potential market and the relative sizes of different target market groups.
When I was consulting for Apple Computer in the middle 1980s, we divided the markets into
workable categories, including home, education, small business, large business, and all others. Some
other groups in Apple also focused on government as a speciﬁc market segment. As you deﬁne the
segment you point toward an understanding of the market.
In the 1970s, I knew a company that was selling candy bars through retail channels. They segmented
the market in a way that deﬁned a range of products as “oral satisfacters” (their term, not mine)
that included candy, cookies, soft drinks, and bagged chips. The segmentation helped the marketers
understand their real competition, which wasn’t just other candy bars, but also other products
targeting the same customer money. That understanding improved the marketing and sales programs. HURDLE: THE BOOK 12.2 ON BUSINESS PLANNING In today’s business it’s easy to see segmentation in action. Consider the different tone, content, and
media for ads that sell products to kids, compared to those that sell the same product to parents. Car
companies change their advertising substantially from one type of program to another. Stand-up
comedian Robert Klein used to joke about the beer company ads that changed the style of the music
to match the audience. He complained that he kept getting the country music version, but he liked
the blues version better. The company that did those ads used the styles of music to address different
target customer groups.
In developing segmentation, consider what factors make a difference in the purchasing, media, and
value patterns of your target groups. Does age matter in choice of restaurants, or is style and food
preference more important? Is income level a key factor? Education? I suspect some restaurants will
sell more meals to college graduates than others. Is this because of education, age, or income levels?
That depends on your busin...
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