Market Segmentation
Number of Words: 2150
Table of Contents
Introduction 2
Question 1 – Customer Decision Making Model 3
Question 2 – Market segmentation and iPad market 6
Conclusion 8
References 9
Introduction
This assignment analyzes two questions, which are customer decision making model (CDMM) and market segmentation. Customer decision making model is a decision making process of a customer before buy a product. In the process, purchase decision consider as a main decision because it transfer product ownership to a customer (Magretta, 2002). The process is a combination of five steps. They are identification of customer problem, need or want, search for possible option to fulfill the need or resolve the identified problem, evaluate identified options through SAF approach, purchasing decision and post purchase audit. In special occasions customers skip some levels of CDMM and make sudden but effective decisions. Second question is to explain market segmentation and identify appropriate market segment for sell iPad. Through detailed analysis, company identify two possible market segments, that is people value and work with timely information (work with laptops, mobile phones, internet connectivity and etc) as long term market segment and early adopter who like to experience latest innovations as short term market segment. At the same time company has to undertake some advertising and promotional activities to market iPad among identified market segments (Lynch, 2003).
Question 1 – Customer Decision Making Model
When customer buy a product or service, purchase decision is the most important step of a long process called customer decision making model. This process helps customers to select suitable, acceptable as well as feasible solutions for fulfill their needs and wants. Most customers follow the process unknowingly and some of them skip
Table of Contents
Introduction 2
Question 1 – Customer Decision Making Model 3
Question 2 – Market segmentation and iPad market 6
Conclusion 8
References 9
Introduction
This assignment analyzes two questions, which are customer decision making model (CDMM) and market segmentation. Customer decision making model is a decision making process of a customer before buy a product. In the process, purchase decision consider as a main decision because it transfer product ownership to a customer (Magretta, 2002). The process is a combination of five steps. They are identification of customer problem, need or want, search for possible option to fulfill the need or resolve the identified problem, evaluate identified options through SAF approach, purchasing decision and post purchase audit. In special occasions customers skip some levels of CDMM and make sudden but effective decisions. Second question is to explain market segmentation and identify appropriate market segment for sell iPad. Through detailed analysis, company identify two possible market segments, that is people value and work with timely information (work with laptops, mobile phones, internet connectivity and etc) as long term market segment and early adopter who like to experience latest innovations as short term market segment. At the same time company has to undertake some advertising and promotional activities to market iPad among identified market segments (Lynch, 2003).
Question 1 – Customer Decision Making Model
When customer buy a product or service, purchase decision is the most important step of a long process called customer decision making model. This process helps customers to select suitable, acceptable as well as feasible solutions for fulfill their needs and wants. Most customers follow the process unknowingly and some of them skip
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