3.3. Customer-Driven Marketing StrategyMarket SegmentationSince markets consists of many types of customers, products, and needs, the marketer must determine which segments offer the best opportunities. – consumers can be grouped & served based on geographic, demographic, psychographic, and behavioral factors Dividing a market into distinct groups of buyers who have different needs, characteristics, or behavior, who might require separate products or marketing programs is called market segmentation. Every market has segments, but not all ways of segmenting a market are equally useful.Market TargetingMarket targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company should target segments in which it can profitably generate the greatest customer value and sustain it over time. – a company with limited resources might decide to serve only one or a few special segments or “market niches” Most companies enter a new market by serving a single segment & if successful, they add segments. – large companies eventually seek full market coverage
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