What are the benefits of market segmentation?
please be brief..
I recommend:
1) Lower marketing expenses by targeting certain segment. Good for small budget companies.
2) Increased effectiveness in marketing compaign designed to attract that segment.
3) Tailoring product offering to a certain market segment improves customer satisfaction.
4) Bowling pin strategy - knock a pin down first, then the ones around it (i.e. go for targeted segment A, then a related segment B leveraging the credibility established in segment A).
Just Be!
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July 7th, 2009 at 3:05 pm
Benefits of market segmentation
- allows a business to clearly identify their target audience
- allows a business to address the needs of that particular audience (needs of GenY are different from Baby Boomers)
- allows a business to develop specific marketing plans to reach particular segments
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July 7th, 2009 at 3:13 pm
one of hte benefits of market segmentation is that it breaks up markets into segments which then can more easily be targeted. the purpose of doing this is that instead of trying to reach everybody in a market, by segmenting you can then target specific segments within that market and be more effective at connecting with potential customers and thus having a larger sales volume.
http://www.advertisingonlinesite.com/Market_Research.html
thats a good site on market reaserch
References :
http://www.advertisingonlinesite.com/Market_Research.html
July 7th, 2009 at 3:50 pm
I recommend:
1) Lower marketing expenses by targeting certain segment. Good for small budget companies.
2) Increased effectiveness in marketing compaign designed to attract that segment.
3) Tailoring product offering to a certain market segment improves customer satisfaction.
4) Bowling pin strategy - knock a pin down first, then the ones around it (i.e. go for targeted segment A, then a related segment B leveraging the credibility established in segment A).
Just Be!
References :
July 7th, 2009 at 4:11 pm
allows a greater coverage of an overall market that has distinct needs that can be captured independently on similar products.
it usually fits a company’s direction as the industry grows further into the life cycle, and consumers become accustomed to the standard versions of the product and are able to develop tastes that run deeper than the standard. Branching out and serving these will maintain market share and revenue growth.
for example - Coca-cola classic, caffeine free coke, cherry coke etc.
Ipod video, ipod nano, ipod shuffle
References :