No linked challenges.
No linked visions.
What is good personnel management?
-
If the universe of all potential buyers is your "market," then the market can be divided up into sections or "segments" based on any number of factors. For example, you might divide up your customers by age group and find that you sell most of your products to people aged 18 to 34. You might divide them up by family size and find that you sell most of your products to married couples with young children. You might divide them up by economic status and find that you sell most products to people with an annual income of about 15,000€ to 40,000€. You might divide them up by geographic location and find that you sell most of your products to people living within two specific zip codes. (Toolkit Media Group 1995-2008.)
A company can categorize or `segment´ target customers into various groups. From these, the company selects one or more customer groups or segments. A different product or a different version of the same product is marketed to each of the groups through different marketing activities (different advertising techniques and sales presentations). It is very important to find suitable target groups. Segmentation is the process on specifying target groups so that the company has a greater opportunity to achieve sales and profit targets. In one case segmentation is used after the company has been established and, in a second case, to enhance sales of the companies existing products. Segmentation is one way of avoiding costly mass marketing. (Lahtinen & Isoviita 1994, 40.)
The process of segmentation is distinct from targeting (choosing which segments to address) and designing an appropriate marketing mix for each segment. The overall intent is to identify groups of similar customers and potential customers; to prioritize the groups to address; to understand their behavior; and to respond with appropriate marketing strategies that satisfy the different predilection of each chosen segment. Turnovers are thus improved.
Lahtinen, J. & Isoviita, A. 1994. Customer Relationships Marketing. Kokkola: KP Paino.
Toolkit Media Group. 1995-2008. How to segment your market.
Research question: HOW CAN YOU MARKET DIFFERENT TARGET GROUPS?
Would you like to comment?
Log in or Sign up
Comments