Evaluating Market Segments Segmentation involves classifying people into homogeneous groupings and determining which of these segments are viable target markets. LEARNING OBJECTIVES Illustrate the purpose and method of evaluating market segments KEY TAKEAWAYS Key Points Market segmentation involves dividing a broad target market into multiple subsets of consumers with common desires and common applications for the product. Marketing campaigns are designed and implemented to target these specific customer segments. This… Read More »Evaluating Market Segments

B2B Company Characteristics B2B businesses operate and market their goods and services differently than B2C companies, due to the different nature of the purchase. LEARNING OBJECTIVES Differentiate between B2B, business to business and B2C, business to consumer characteristics KEY TAKEAWAYS Key Points The volume of B2B sales is much greater than that of B2C sales. The purchase of B2B products is much risker than B2C products, because purchasing the wrong… Read More »B2B businesses operate Company

Segmentation for B2B B2B firms will segment their customers differently, due to different buying habits and procedures between businesses and end-users. LEARNING OBJECTIVES Analyze B2B marketing segmentation characteristics KEY TAKEAWAYS Key Points There are five major ways to segment the B2B market, including: type of customer, Standard Industrial Classification codes, end uses, common buying factors, and buyer size/geography. SIC classification provides a useful way for marketers to segment the market.… Read More »Segmentation for B2B marketing

Conducting a Segmentation Determining Segmentation Variable(s) Markets can be segmented primarily according to geographic, demographic, usage, and psychological segments—or a combination of the above. LEARNING OBJECTIVES Break down market segmentation variables KEY TAKEAWAYS Key Points Geography is probably the oldest basis for segmentation, and is often useful for marketers due to the amount of data available. However, there are drawbacks with focusing solely on geography. Demographic segmentation is also useful… Read More »Conducting a Segmentation

Concentrated Targeting Concentrated marketing is a strategy which targets very defined and specific segments of the consumer population. LEARNING OBJECTIVES Evaluate the advantages and disadvantages of adopting concentration strategies in consumer marketing KEY TAKEAWAYS Key Points An organization that adopts a concentration strategy gains an advantage by being able to analyze the needs and wants of only one segment and then focusing all its efforts on that segment. Concentrated targeting… Read More »Concentrated Targeting

Identification of Target Markets Undifferentiated Targeting Viewing the market as a homogeneous aggregate leads to undifferentiated targeting and mass marketing. LEARNING OBJECTIVES Evaluate the benefits and drawbacks of undifferentiated targeting in consumer marketing KEY TAKEAWAYS Key Points Undifferentiated targeting occurs when the marketer ignores the apparent segment differences that exist within the market and uses a marketing strategy that is intended to appeal to as many people as possible. For… Read More »Identification of Target Markets

Measuring a Successful Segmentation Segmentation is a central aspect of a marketing strategy, and must be constantly assessed, measured, validated, and refined through financial and statistical methods. LEARNING OBJECTIVES Recognize the variables involved in segmentation, and how different segments can be measured for profitability KEY TAKEAWAYS Key Points Selling to the entire market is often less efficient than identifying, filtering, and measuring the performance of various segments to find a… Read More »Measuring a Successful Segmentation

Concentrated Targeting Concentrated marketing is a strategy which targets very defined and specific segments of the consumer population. LEARNING OBJECTIVES Evaluate the advantages and disadvantages of adopting concentration strategies in consumer marketing KEY TAKEAWAYS Key Points An organization that adopts a concentration strategy gains an advantage by being able to analyze the needs and wants of only one segment and then focusing all its efforts on that segment. Concentrated targeting… Read More »Concentrated Targeting

Identification of Target Markets Undifferentiated Targeting Viewing the market as a homogeneous aggregate leads to undifferentiated targeting and mass marketing. LEARNING OBJECTIVES Evaluate the benefits and drawbacks of undifferentiated targeting in consumer marketing KEY TAKEAWAYS Key Points Undifferentiated targeting occurs when the marketer ignores the apparent segment differences that exist within the market and uses a marketing strategy that is intended to appeal to as many people as possible. For… Read More »Identification of Target Markets

Developing a Market Segmentation A market segmentation is developed based on one of two strategies and several consumer identifying characteristics like demographics and behavior. LEARNING OBJECTIVES Review the characteristics of market segmentation KEY TAKEAWAYS Key Points The two major segmentation strategies followed by marketing organizations are concentration strategy and multi- segment strategy. Segmentation of a market to reach a target consumer base can be done by defining consumers in terms… Read More »Developing a Market Segmentation