Please enable JavaScript.
Coggle requires JavaScript to display documents.
T5: Part 1 - Market Segmentation p.248 (B2B segmentation, good table 8.2 p…
T5: Part 1 - Market Segmentation p.248
Basics
PRO: Good for consumers because it more closely aligns products with their needs and wants
CON: Can reduce economies of scale as segments become smaller and smaller
DEFINE: the act of dividing up the market into groups defined by closer needs and wants
B2B segmentation, good table 8.2 p.258
Operating (technology / user status / customer capabilities)
Purchasing approaches (existing relationship / purchasing policies)
Demographic (industry / company size / location)
Situational factors (urgency / order size)
Personal characteristics (attitude toward risk / loyalty)
B2C Segmentation
Psychographic - lifestyle, personality, values
Behavioural - dividing on the basis of their knowledge of, attitude toward, use of, or response to a product.
Variables - see fig 8.2 p.258
usage occasion
current user status
Who makes the purchase decision
usage rate
Buyer-readiness stage
Loyalty status
Types
Split loyals
Shifting loyals
Hard-core loyals
Switchers
Considerations
Can learn a lot from studying the first three
In a switcher dominant market, price is key
Caution: What appears to be loyalty could be habit, indifference, a low price, a high switching cost, or limited other options
Demographic - e.g. age, life-cycle, gender, income, generation, education, socio-economic, etc
Multi-attribute (geo-clustering) - combining variables, particularly geographic and demographic
Geographic - nations, cities, neighbourhoods, etc
Interesting:
Flexible market offering
(p.259) - Anderson and Narus
Naked solution - the base product that most people will value
Discretionary options - Optional extras that carry extra charges
Grassroots marketing
- getting as close and personally relevant to the individual customers as possible, i.e. HPs 'e-inclusion' p.249. (Is Mainfreight's Books in Homes an example of this?)
Stages of full process
Segmentation
1. Needs-based segmentation
2. Segment identificiation
Market targeting
Segment attractiveness
Segment profibility
Positioning
Segment positioning
Segment 'acid test'
Marketing-mix strategy