The aim of this course is to provide you with a sound understanding of the principles of marketing. In a nutshell, understanding marketing comes down to understanding your customers. Thus, even if you have no interest in pursuing a career in marketing per se, the knowledge and skills acquired in th...
Segmentation
Market segmentation is the act of dividing a market into smaller groups of buyers
with distinct needs, characteristics, and/or behaviours that might require separate
marketing strategies or mixes.
Why is Segmentation Important
o Customer Analysis: Conducting a systematic segmentation analysis
helps the company to understand its market and select the most
attractive group of customers.
o Enhanced Value Creation: Through segmentation, firms are better able
to serve needs of customers with specific products.
o Competitor Analysis: It is easier to recognise and combat competition,
when focusing on a smaller part of the overall market
o Effective Resource Allocation: Scarce resources can be concentrated
more effectively on a few customers, rather than spread thinly across
the masses.
o Strategic Marketing Planning: Planning becomes easier overall, once
we have a precise understanding of who our customers are.
Process of Segmentation
o
Segmentation Variables
o Geographic Segmentation
Dividing the market into different geographical units, e.g.
countries, regions, cities.
Can be a useful starting point.
Easy to define and measure (data mostly readily available), but
often does not result in meaningful clusters of similar customers.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marsssbarss. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.89. You're not tied to anything after your purchase.
