Marketing Entrepneurship
1. Market Segmentation:
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
Aggregating prospective buyers into groups that have common needs
Using different marketing mixes to help gain competitive advantage with a specific segment.
While there is an 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage. Most market segmentations are the techniques used to attract the right customer.
One of the main reasons for using market segmentation is to help companies to better understand the needs of a specific customer base. Mass marketing assumes that all customers are the same and will respond to the same advertising. By looking at ways in which potential customer groups are different from each other, the marketing message can be better targeted to the needs and wants of those people.
Often, dividing consumers by clearly defined criteria will help the company identify other applications for their products that may not have been obvious before. These revelations often help the company target a larger audience in that same demographic classification, improving market share among a specific base. Segmenting the market can also serve to identify smaller groups of people who make up their own, previously unknown subsets, further improving the overall efficiency of the company's marketing efforts.
2. There are 5 key criteria that must be met for effective segmentation
I. Response differences:
Segmentation is not always necessary in a market. When a marketer perceives differences between two groups of people given the same marketing mix, then the marketer is said to have identified response differences.The response difference might
Aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
Aggregating prospective buyers into groups that have common needs
Using different marketing mixes to help gain competitive advantage with a specific segment.
While there is an 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage. Most market segmentations are the techniques used to attract the right customer.
One of the main reasons for using market segmentation is to help companies to better understand the needs of a specific customer base. Mass marketing assumes that all customers are the same and will respond to the same advertising. By looking at ways in which potential customer groups are different from each other, the marketing message can be better targeted to the needs and wants of those people.
Often, dividing consumers by clearly defined criteria will help the company identify other applications for their products that may not have been obvious before. These revelations often help the company target a larger audience in that same demographic classification, improving market share among a specific base. Segmenting the market can also serve to identify smaller groups of people who make up their own, previously unknown subsets, further improving the overall efficiency of the company's marketing efforts.
2. There are 5 key criteria that must be met for effective segmentation
I. Response differences:
Segmentation is not always necessary in a market. When a marketer perceives differences between two groups of people given the same marketing mix, then the marketer is said to have identified response differences.The response difference might