Rediscovering Market Segmentation

In: Business and Management

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Reading Assignment
《Rediscovering Market Segmentation》By Daniel Yankelovich & David Meer

MKTG 6215
From:Han Xia

The idea was to broaden the use of segmentation so that it could inform not just advertising but also product innovation, pricing, choice of distribution channels, and the like.

1. Describe the elements of a smart segmentation strategy

2. Explain how segmentations meant to strengthen brand identity and make an emotional connection with consumers differ from those capable of telling a company which markets it should enter and what goods to make

3. Introduce a tool we call the “gravity of decision spectrum,’’ which focuses on the form of consumer behavior.

The Gravity of Decision Spectrum

According to the article, the meaningful segmentations depend on finding patterns in customers’ actual buying behavior, so you need to gather the relevant data based on the question your exercise is ultimately aimed at answering. Like 1. Which benefits and features matter to your customer? 2. Which customers are willing to pay higher prices or demand lower ones? 3. The relative advantages and disadvantages customers identify in your existing offerings. 4. Data on social, economic and technological trends. Although these aspects are simple, but from a Tissue to the Internet, the market segmentation of all products are start from here.

Segmentations can be started from the following several aspects:

1. what are we trying to do? The market segmentation and the company's strategy has to be interrelated. For example, cosmetics’ market segmentation is not necessary to divide according to sex, but the age or the purpose of the make-up, which is more reasonable.

2. Which customers drive profits? Effective market segmentation must be able to identify customer groups that matter to the company's performance.


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