chapter 7

Substantiality

The segment must be big enough to be worth targeting, not necessarily having many customers but enough to make it worthwhile.

Identifiability and Measurability

Segments must be easy to identify and measure, often using information like demographics or geography.

Accessibility

The company must be able to reach the segment with its marketing efforts, ensuring effective communication with different groups.

Responsiveness

Each segment should respond differently to a marketing mix, indicating the need for tailored strategies based on customer reactions.

Select a market or product category for study

The initial step in market segmentation, defining the area of focus for segmentation efforts.

Choose a basis for segmenting the market

Requires insight, creativity, and knowledge to determine how to divide the market effectively.

Segmentation descriptors

Specific variables used to segment the market, such as heavy users or nonusers, to categorize different groups.

Profile and analyze segments

Involves understanding sizes, growth, purchase frequency, brand loyalty, and creating target personas for each segment.

Select target markets

Outcome of segmentation, deciding which segments to focus on for marketing efforts.

Design, implement, and maintain appropriate marketing mixes

Developing tailored strategies for product, place, promotion, and pricing to target markets effectively.

Positioning

How customers perceive a brand compared to others, influencing buying decisions and shaping customer perceptions.

Strategic Positioning

Understanding customer needs, analyzing competitors, and finding a unique market spot for the brand.

Differentiation

Making products appear different through various factors like brand names, packaging, or special ingredients.

Similarity

Making products seem similar to others to ease customer transition and comfort in switching products.